Vacancy Rate Hits 20-year Low

There’s no let up to Madison Avenue‘s retail rebound.

A total of 18 stores, galleries and restaurants opened in prime locations along Madison Avenue over the past six months, bringing the vacancy rate down to 4.9 percent, the lowest level in nearly 20 years.

That’s according to the Madison Avenue Business Improvement District and its “New Store Report, First Half of 2026,” released exclusively to WWD on Monday.

According to the Madison Avenue BID, the vacancy rate has been steadily declining. It stood at 5.5 percent in January; 7.6 percent a year ago, and 16 percent in October 2020 during the COVID-19 pandemic.

“You are seeing even a greater concentration of certain business categories,” said Matthew Bauer, president of the Madison Avenue BID, which covers the stretch from 57th to 86th Streets.

“A few years ago, there was this tremendous investment of jewelry brands that continues today,” Bauer said.

According to the report, Madison Avenue has become “North America’s equivalent of Place Vendôme as leading haute joaillerie houses and watchmakers opted for Madison Avenue for flagship openings this year, including MB&F Lounge, Marli and Pasquale Bruni.”

Menswear is also gaining prominence. London-based Thom Sweeney brought a taste of Savile Row by opening last month between 65th and 66th Streets. In addition, Dunhill is returning to Madison, between 68th and 69th Streets, and Paul Smith is opening between 73rd and 74th Streets.

“We also have Brioni and Cremieux,” Bauer said, citing a few of the most upscale men’s labels on Madison. Cremieux opened last year by 60th Street, and Brioni opened a decade ago between 61st and 62nd Streets. “We’re seeing a greater concentration of menswear.”

Additionally, the streets along Madison north of 72nd to 86th Streets have evolved into what Bauer calls “contemporary row.” Dôen, Roxanne Assoulin, Ruti, Susan Alexandra and Yigal Azrouël all opened boutiques this year. And over the past year or so, there were openings by Australian fashion brand Camilla, Los Angeles-based Staud, as well as new expanded locations for Generation Love, L’Agence and Vince.

Italian brands continue to saturate the avenue, with this year’s arrival of La DoubleJ’s first U.S. boutique, just off Madison on 69th Street, in a town house blending ready-to-wear and homeware with a spiritual therapy sanctuary for yoga, meditation and sound healing. And Falconeri, which specializes in women’s and men’s cashmere, opened a flagship near 65th Street.

Some international luxury brands continue to make Madison Avenue their first American address. Bonjil, the South Korean skin care brand, and Pernia’s Pop-Up Studio, which isn’t a pop-up but a luxury fashion e-commerce platform and multidesigner boutique from India, made their U.S. retail debuts this year on the avenue.

Investment in the corridor continues in the hospitality, residential and office sectors as well. Construction is underway at the Hotel Plaza Athénée Nobu New York, scheduled to open in 2027, while mixed-use developments at 625 Madison Avenue, 655 Madison Avenue and 1128 Madison Avenue will introduce new residences, retail, hospitality and office space, further strengthening the district. There’s been widespread speculation that Chanel will have a major presence at 655 Madison.

“Brands are opening where their customers are. They recognize where many of their core customers reside,” Bauer said.

He’s consistently heard from retailers along the luxury venue that about 60 percent of their business volume is generated by those living on the Upper East Side near or along Madison Avenue, while 40 percent of their business is generated by visitors from outside the area. “The visitor market is important,” Bauer said. “We have The Carlyle, The Mark, The Lowell and the Surrey hotels, and we are a block away from Central Park and the Metropolitan Museum of Art. “There is a strong group of visitors that come to New York on a frequent basis and Madison Avenue is on their itinerary.”

Bauer cited another factor for Madison’s revival. “Since the pandemic, there certainly has been some recognition by landlords working with tenants to make a win-win situation.”

In addition, the BID has been beefing up its schedule of special events through the year, which include celebrations for the Chinese New Year; “Italy on Madison” in conjunction with the Italian Trade Agency; the Gallery Walk, and this Sunday there will a celebration marking Bastille Day being staged from 59th to 63rd Streets.

From 57th to 72nd Streets, “storefront availability on Madison Avenue has dwindled to 14 storefronts,” the Real Estate Board of New York indicated in its “Manhattan Retail Report, First Half 2026.”

According to REBNY, “Average asking rent fell from $861 to $780 [per square foot] in the first half of 2026. Several owners are either not quoting an asking rent or are requiring the tenant to lease the entire multilevel block. More than half of the storefronts have an annual rent exceeding $1 million.”

Goyard at 699 Madison between 62nd and 63rd Streets will soon open; and several brands have been reinvesting through relocations and expansions, including Missoni, Mackage, Kwiat Fred Leighton and Gagosian gallery left its space upstairs and reinvested into the ground took over half the block space at 980 Madison, on the ground level.

The strengthening of America’s premiere luxury venue is part of a broader, long-term retail recovery in Manhattan evident in SoHo, the Meatpacking District, the Penn District, Times Square, Flatiron and Fifth Avenue, which are also seeing strong demand for retail space.

“Quality availability is increasingly limited,” the REBNY reported. “Established brands, new-to-market retailers, digitally native concepts, and returning operators are all contributing to the recovery.”

Stores Currently Being Developed

Businesses Being Relocated and Expanded

First-half 2026 Openings on Madison between 57th and 86 Streets

First-half 2026 Relocations and Expansions