City Retail Report: Rising barriers to entering prime urban corridors

We interviewed stakeholders who collectively cover more than 40 prime urban retail corridors across 8 U.S. markets and 3 Canadian markets. Additionally, we collected notable store-opening announcements on these corridors over the past year, including recent and upcoming openings, from brokers, retailers, and credible news organizations.

A prime urban corridor is a nationally recognized shopping district distinguished by its mix of high-street, national, and international tenants. Typically named for the most notable retail street within the corridor, these shopping districts have boundaries that were carefully drawn to include the most prominent retail spaces and the occurring and potential retail sprawl. 

Prime urban retail corridors are becoming increasingly competitive. The underlying theme from interviews with U.S. and Canadian stakeholders this year is an overall market tightness driving record-high investment to gain entry. To justify these costs and convert more shoppers, retailers are shifting from transactional models to experiential destinations − a strategic necessity for increasing returns, particularly with prime corridor asking rents rising an average of 10 percent over the past year.

While prestige addresses have always mattered, corridor choice has evolved into a key branding statement. Our review of the past year’s new store openings reveals that brands are selecting locations for pointed messaging, aligning them with internal store design and social media strategy. Choosing a corridor for brand positioning is becoming as important as the foot traffic it provides.

Prime urban retail is consolidating into a “winner-take-all” environment. Only three cities − NYC, LA, and Miami − account for 60 percent of notable expansion and over 80 percent of luxury openings. 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 percent of all new openings.

Corridors are developing distinct competitive positioning based on changes in local urban dynamics. New York’s Fifth Avenue looks to capitalizes on domestic tourism, San Francisco’s Union Square attracts major anchor leases that signal market confidence, and Boston’s Newbury leverages a growing back-to-office demographic.

Luxury doubles down on experiential destinations

Global luxury brands are willing to make large capital commitments within North America’s globally recognized urban retail corridors, turning them into large-scale experiential concepts.

Brands like Louis Vuitton, Rolex, and Armani have invested in prime corridors not just for retail sales but for brand presence, creating architectural landmarks that last for decades.

Retailers buy their way into iconic corridors

Securing space on North America’s iconic shopping corridors remains a challenge, as vacancy rates on many prime stretches approach historic lows while asking rents soar. Fearing the risk of a future lease renewal or being outbid, retailers continue to “buy their way in.”

Liquidity for high street retail is at its highest levels since 2015 and investment into high-street retail ​assets is up +82 percent year-to-date in 2025. Following years of stalled interest, high-street retail has rotated back into investors’ awareness with transactions such as the recent IKEA purchase ​of 529 Broadway in SoHo for $213 million and ECA Limited’s $400 million sale ​at 338 North Rodeo Drive in Beverly Hills.

This January, Uniqlo closed on a $350 million purchase of a portion of its 91,000 s.f. flagship store at 660 Fifth Avenue. The move permanently takes one of the corridor’s largest retail spaces off the leasing market.

The rise of high-impact F&B anchors

High-impact F&B anchors are commanding prominent real estate on prime retail corridors in the form of large-scale destinations. Their business model relies on selling an experience where prestigious address, high foot traffic, and vibrant atmosphere are part of the product itself.

This is driven by operators like Nancy Silverton’s massive Osteria Mozza in Georgetown, the multi-level Colombian spectacle Andrés Carne de Res on Miami’s Lincoln Road, and the view-focused HB Rooftop in Times Square. Even high-volume concepts like All’Antico Vinaio and curated food halls like Time Out Market require the immense crowds found only in these premier hubs.

As the role of the traditional retail anchor evolves, landlords actively seek these high-energy operators to drive foot traffic, creating a symbiotic relationship. This movement solidifies dining as a powerful anchor that animates and economically supports entire commercial districts.

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Uniqlo leads among international brands

Global labels − especially those from Europe and Asia − are accelerating U.S. and Canadian market expansion in 2025. With at least three openings in prime corridors each this past year, Japanese Uniqlo and Swedish H&M are leading the expansion from coast to coast. Canadian Monos has also been very active in prime U.S. retail corridors.

These are brands drawn by robust consumer demand, access to tourism, and the opportunity to anchor their brands in North America’s most visible shopping landscapes.

Early this year, Chinese giant Urban Revivo positioned its first U.S. store with a massive, 30,000 s.f. flagship on SoHo’s Broadway, strategically located near the existing Zara flagship. A few doors up at the northwest intersection of Spring and Broadway, Swedish Ikea is opening its second Manhattan location after the one on Fifth Avenue. 

John Varvatos and Levain Bakery lead among national brands

While they sell vastly different products, luxury fashion John Varvatos and specialty bakery Levain are expanding into prime retail corridors for brand positioning, customer access, and the power of the physical-store experience.

While John Varvatos aims to reaffirm brand prestige and reclaim market position, Levain Bakery seeks to transform its indulgent, “accessible luxury” locations into a high-volume, experiential destination.

New York, LA, and Miami command the high-street landscape

New York, Los Angeles, and Miami dominate the past year’s retail expansion, capturing more than 60 percent of all notable announcements and concentrating over 80 percent of luxury and luxury-lite fashion openings.

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. 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.

New York leads apparel & accessories expansion with flagship investments from global luxury houses. 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.

These three markets have created self-reinforcing retail ecosystems that continue to attract the highest-caliber investment.

Fashion and dining represent more than three-quarters of store openings

Apparel & accessories dominate across most prime urban retail corridors in North America, followed by dining. The exceptions are D.C. and Philadelphia, where dining is the strongest category and apparel & accessories secures second place.

Luxury captures the largest share of apparel openings in Miami, Toronto, New York, and LA − commanding premium square footage and flagship investments − while high or premium has the most fashion openings in Vancouver, Boston, and D.C. The remaining cities show balanced distribution across price points.

Casual and fine dining represent more than half of restaurant openings, outpacing bakeries, coffee shops, and bars/ taverns as operators prioritize experiential concepts and larger-format destinations.

NYC thrives on domestic travel, setting new records in 2025

New York City’s 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. Building on a solid 2024, the city is projected to welcome a record-breaking number of visitors in 2025, with estimates of up to 68.1 million − surpassing pre-pandemic levels.

Many of the city’s premier attractions, which contribute to its global status, are experiencing a thriving season. The 2024-2025 Broadway season was the highest-grossing in history, bringing in $1.89 billion. As of early November 2025, weekly attendance remains strong. The Metropolitan Museum of Art and the American Museum of Natural History are seeing strong attendance, particularly local and out-of-state domestic.

Looking to capitalize on tourism, the $400 million redevelopment of Fifth Avenue between Bryant Park and Central Park, set for completion by 2028, will boost foot traffic and dwell time. By reducing car lanes to expand space for shoppers with more seating and greenery, the project will create a less congested, more pleasant environment, reinforcing Fifth Avenue's status as a premier global luxury destination.

Anchoring the west end of this revitalization, the Planet Hollywood at 136 West 42nd Street, just a block from the southern start of the new Fifth Avenue project, reopened in early 2025 following a $20 million renovation. The revamped location has been transformed into a high-tech, immersive experience.
 

The ambitious rebound of San Francisco’s Union Square

San Francisco’s Union Square is in the first phase of an ambitious, destination-focused recovery. After a period of significant brand exits and subsequent negative sentiment against the node, new leasing activity is centered on rebuilding the district’s appeal with major experiential flagships designed to attract both tourists and residents.

The May 2025 opening of the Nintendo store is a pivotal catalyst in this revival, serving as a key de-risking event for future retail investments. It provides tangible proof of consumer demand and acts as a powerful experiential anchor, driving foot traffic.

This flagship, alongside new commitments from Zara and Uniqlo, creates powerful co-tenancy momentum that helps stabilize the district. This also supports rental rates, reverses negative leasing trends, and enhances the long-term asset value of surrounding properties, creating a strong foundation for Union Square’s recovery.

Boston’s retail surges on steady back-to-office trends

Recent retail openings in Boston strategically cater to the daily routine of the back-to-office demographic, offering everything from convenient, high-quality food at Levain Bakery to the “new work uniform” at apparel stores like Rhone and Brooks Brothers.

Boston’s back-to-office recovery is anchored by a diverse mix of well-established industries − including life sciences, finance, and technology − that provide a broad and predictable base of professional workers. This October, Eli Lilly signed one of 2025’s largest life-science leases in the Seaport district.