Prime urban retail corridors have made a vibrant comeback in the aftermath of the pandemic, with New York, Los Angeles and Miami leading the way, according to the real estate firm JLL.
“These three markets have created self-reinforcing retail ecosystems that continue to attract the highest-caliber investment,” the brokerage said in a report it released Wednesday during the annual ICSC conference in New York.
For its research, JLL interviewed brokers and retailers in 40 major retail corridors across the United States and Canada about announced store openings over the past year. JLL defined a prime urban corridor — typically named after its most notable street — as a nationally recognized shopping district distinguished by its mix of high-street, national and international tenants.
“New York, Los Angeles, and Miami dominate the past year’s retail expansion, capturing more than 60% of all notable announcements and concentrating over 80% of luxury and luxury-lite fashion openings,” according to the report, written by Heli Brecailo, a JLL national research manager of retail.
The 60% figure refers to all notable retail announcements within prime urban retail corridors.
Pandemic store shutdowns and mandates that employees work from home, or later adopt hybrid schedules, were a body blow to retailers in downtown business districts. Now many retailers are jostling to lease space in those areas with some tourism rebounding and employers issuing back-to-office orders.
‘Retail supremacy’
“Prime urban retail is consolidating into a ‘winner-take-all’ environment,” JLL said. “This trend is spearheaded by global giants Uniqlo and H&M, alongside national leaders John Varvatos and Levain Bakery, recently launching multiple new locations within corridors. The fashion and dining categories dominate, with over 75% of all new openings.”
New York, Los Angeles and Miami “command the high-street landscape,” according to JLL.
“New York maintains its retail supremacy through sheer corridor depth — SoHo, Madison Avenue and Fifth Avenue each function as distinct luxury ecosystems, collectively driving the city’s leadership position,” JLL said. “Los Angeles holds second place with the Beverly Hills Triangle, while Miami’s rise to third displaces Washington D.C., driven by the inclusion of Brickell and Coconut Grove.”
JLL expanded the scope of its research to include the Brickell and Coconut Grove corridors, which led to the collection of more new openings to outpace Washington, according to Brecailo.
“That said, their street-front profiles differ,” he said in an email to CoStar News. “Miami leans toward luxury, while D.C. is stronger in the high or premium apparel category.”
Washington has only two prime retail corridors as defined by JLL, namely Georgetown-M Street and 14th Street. Now Miami has four — Lincoln Road and the Design District in addition to Brickell and Coconut Grove.
Canada’s prime retail corridors, according to JLL, are Robson Street and West Fourth Street in Vancouver; Bloor Street and Queen Street West in Toronto; and Sainte-Catherine Street in Montreal.
New York’s retail drivers
The takeaway from JLL’s report is that New York is the biggest winner.
“New York leads apparel & accessories expansion with flagship investments from global luxury houses,” JLL said. “Los Angeles emerges as the runner-up, and Miami demonstrates more moderate growth in third. New York’s dominance extends beyond fashion into home furnishings and grocery, while the city co-leads with Los Angeles in cosmetics & beauty — reflecting both markets’ ability to attract premium lifestyle brands across multiple retail segments.”
New York’s retail is also seeing a boost as its “tourism sector is demonstrating robust and resilient performance in 2025, largely sustained by a strong domestic market that counterbalances a lower-than-anticipated number of international visitors, particularly from Canada and China,” according to JLL.
Broadway’s boom is also giving New York a boost. Its 2024-2025 season was the highest grossing in history, bringing in $1.89 billion, according to JLL.
“The performance of urban retail spaces arguably defines New York’s retail market,” CoStar said in its most recent report on the city’s retail sector. “Restaurants and apparel tenants were among the most active lessors, a clear response to the more than 64 million people who visited New York City last year.”
With availability levels near historic lows, “some owners in prime Manhattan retail corridors are testing what premiums tenants are willing to pay by upping their asking rents above $700/square feet, while market participants note that some owners have pulled back on offering concessions that were more common in previous years,” CoStar reported.
Some retailers have been buying their slots on prime retail corridors, in a trend mentioned by JLL. It cited several examples, including Japanese retailer Uniqlo closing on the roughly $350 million acquisition of part of its 91,000-square-foot flagship at 660 Fifth Ave. in New York.