News Release: 2023 Commercial Market Report
UNION SQUARE PARTNERSHIP RELEASES 2023 COMMERCIAL MARKET REPORT
With 450K square feet of commercial office space leased since January 2022, Union Square-14th Street offers a diverse array of retail, food, health + wellness, and entertainment.
New York, NY (August 16, 2023) - Union Square Partnership (USP) released the 2023 Union Square Commercial Market Report as well as the supplementary Q2 Biz + Broker Quarterly Report, sharing positive trends in economic growth for the Union Square-14th Street District. Union Square continues to demonstrate incredible resilience with strong signs that the district will not only continue its upward trajectory but also thrive as one of the City's best neighborhoods to live, work, and invest in.
The 2023 Union Square Commercial Market Report outlines the neighborhood’s recent growth, highlighting key commercial lease activity, ground floor retail openings, foot traffic increases, and more. Since January 2020, Union Square-14th Street has welcomed 126 new businesses and plans to welcome 22 more in the near future. USP’s Q2 Biz + Broker Report highlights the momentum that has driven this exponential growth and as well as current retail opportunities and availabilities for businesses seeking space in the area.
Union Square’s Competitive Edge
Exemplifying a "15-minute neighborhood," Union Square offers a wealth of local amenities including dining, shopping, culture, entertainment, and healthcare, all within walking distance or a short bike-ride. A true mixed-use neighborhood, Union Square's residents, offices, retail, and institutions help sustain a vibrant public realm, with recent visitor traffic reaching 98% of 2019 levels. Office leasing remains active, with over 450K sf of office space leased since January 2022 across tech, finance, publishing, and other sectors.
Union Square’s 126 new businesses are comprised of 54% eateries, 28% retail, and 18% neighborhood services such as health and wellness. USP and creative partners work year-round to bring unique cultural, food, and art experiences to the square. Events like the eight-week Summer in the Square series, Urbanspace's Holiday Market, and seasonal pop-ups draw foot traffic and support local business and arts communities.
Union Square’s Rich Mix of Commercial Businesses
Union Square-14th Street is home to high-profile institutions and headquarters across a range of sectors including technology, media, finance, and design. This rich mix of commercial tenants continues to be a major draw. Additionally, Union Square is center of gravity for live entertainment, arts, and culture. According to the data platform Replica, spending on entertainment doubled between 2019 and 2023 and visits in the district rose by 10% between 2022 and 2023, reaching a high of 98% compared to August 2019, a 10% higher average than Midtown Manhattan.
"Industry leaders like Microsoft, Sequoia Capital, and Wellington Management are choosing Union Square for their newest offices. Coupled with strong leasing activity at the ground floor, these new tenancies demonstrate the area's appeal across sectors,” says Julie Stein, Executive Director, Union Square Partnership. “National retailers including Parachute, Crate & Barrel and Target are joining local favorites ABC Carpet, Fishs Eddy and Design Within Reach to solidify Union Square as a retail destination for interior design and home essentials.”
USQ Thrives as a Job Center
Union Square is a job center with 144K+ workers across sectors. Top employers include Con Edison, Mount Sinai Downtown, New York University, and The New School. In the coming year, the addition of national brands, and new and renovated hotels in the area will bring additional retail and hospitality job opportunities. This summer, Microsoft moved into its new 150K sf office space at 122 Fifth Avenue. The building's ground floor is nearly fully leased with prominent brands Allbirds, Parachute, and Pandora, and Levain Bakery planning to open in early 2024.
Zero Irving (124 East 14th Street) has made headlines for leasing nearly 100% of its office space to major tech and finance firms including GameChanger (25K sf) and Sequoia Capital (13K sf). Additionally, the 10K sf Urbanspace food hall introduced 13 vendors to the 14th Street food scene. Over 65K sf of retail space has been leased since January 2022 to national brands, such as Petco’s 30k sf flagship location on Union Square East, and NYC favorites such as Hex & Co board game café, Sweet Chick, and Kazunori.
“Because we’re located in the heart of the NYC tech community, Civic Hall @ Union Square’s six floors of state-of-the-art training and conference center space at the new Zero Irving building will drive sustainable pathways to high-tech jobs. Civic Hall will help supply the tech workforce and spur innovation for industry leaders, the community, the City of New York, and beyond.” Seema Shah, Executive Director, Civic Hall
New and Coming Soon'
Looking ahead into the Fall, we are excited to welcome Upright Citizens Brigade, Crate & Barrel, Saatva, Mission Ceviche, and many more businesses to the neighborhood.
FÖRENA, a 50-unit luxury condominium development at 540 Sixth Avenue featuring 6K SF of new retail space for lease, finished construction in July 2023.
NYU is relocating the Wagner Graduate School of Public Service to 105 East 17th Street in Fall 2024, bringing over 860 students and over 200 faculty to Union Square.
Target will open a 33K SF store at 10 Union Square East, establishing over 75 new jobs and creating a retail anchor and local amenity for 14th Street.
Union Square Partnership’s Stewardship of the District
USP fosters positive change through a wide range of programs, from public space enhancements and clean + safety programs, to district alerts, advocacy for local improvements, networking events, and so much more. To elevate and modernize Union Square’s public realm, Union Square Partnership is advancing USQNext: a bold vision plan delivering social and economic benefits for residents, workers, visitors, and the city as a whole. Through USQNext, USP seeks to transform Union Square into an accessible and inclusive urban space through collaboration with local stakeholders and City and State partners.
Current Retail Opportunities in Union Square
Retail leasing in Union Square-14th Street has shown increased momentum over the last several quarters, with over 120 new businesses opened since the pandemic. In Q2 of this year, Union Square has welcomed 12 new ground-floor businesses, the single best performing quarter since the start of the pandemic. Newcomers range from dining establishments, to retail stores, to entertainment including Petco, Partea, Happy Go Lucky Exhibit, The Laurels, and more.
The Q2 Biz + Broker Quarterly shows 31 available ground- floor retail spaces, ranging from 400-12,800 sf. Each offers a prime opportunity to be a part of New York City's most vibrant mixed-use district.
Click here to view available retail spaces in Union Square.
About Union Square Partnership
For over 45 years, Union Square Partnership has been working to ensure the best possible neighborhood for its residents, businesses and visitors. USP’s programs include sanitation, public safety, economic development, public programming, and marketing services, and we invest in the beautification and maintenance of Union Square Park - the district’s crown jewel. As the leading advocate for the Union Square-14th Street community, we work to enhance the neighborhood’s quality-of-life by creating a cleaner, safer and more enjoyable environment. With our vibrant community continuing to evolve and grow, the Union Square Partnership’s role is now more important than ever. We are dedicated to this neighborhood, and work 24/7 to make sure that Union Square remains a phenomenal place to live, work and visit.
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