Groundbreaking New Data Shows Fewer Empty Storefronts, Booming Small Business Growth in Pandemic Recovery

For Immediate Release
November 15, 2024

Contacts:
Casey Berkovitz, Joe Marvilli - [email protected] (212) 720-3471

NEW YORK - Department of City Planning (DCP) Director Dan Garodnick today released a groundbreaking new analysis showing New York City's storefront vacancy rate is down to 11.1 percent, marking the fourth straight quarter of declining vacancy. By comparison, a survey of 24 corridors across the city during summer 2020 showed inactivity rates of over 30 percent. The Queens, Bronx, and Staten Island all have borough-wide vacancy rates below 9 percent, although some higher vacancy rates persist, especially in the Manhattan core.

The analysis, which provides a granular picture of storefront and corridor health across the five boroughs, also shows that roughly one in three of the city's storefront businesses opened since 2020. The report shows that policies like public realm improvements, support for local nonprofit partners, and cutting red tape for entrepreneurs can help the city continue its economic recovery. Moreover, data in the report will allow the City to better target these programs moving forward.

"New York isn't just coming back, we are back," said New York City Mayor Eric Adams. "Our administration is focused on making New York City a safer and more affordable city, and today's announcement demonstrates how we are doing just that. With yet another quarter of storefront vacancy on the decline, we are seeing fewer empty storefronts every day, while small businesses are growing across the five boroughs. By cutting red tape, updating outdated zoning, supporting valued community partners, and fostering an active public realm, we're growing our city's economy and creating more vibrant communities that make New York City safer, more affordable, and more prosperous."

"From the passage of the City of Yes for Economic Opportunity citywide text amendment to the record levels of investment that this administration has made in SBS's neighborhood development grant programs, we have centered the health of our storefront economy and our commercial corridors in our economic recovery," said First Deputy Mayor Maria Torres-Springer. "As we post another quarter of declining storefront vacancies, it's clearer than ever that our efforts to support our local small businesses are bearing fruit across all corners of our city."

"When we took office, the long-term economic impacts of COVID were an open question. Now, we can safely say that New York City isn't just coming back-it is back, with our storefront vacancy rate driving down quarter over quarter thanks in part to public realm improvements in every borough. We are supporting the largest permanent outdoor dining program in the country and pushing to get sheds down, among other investments," said Deputy Mayor for Operations Meera Joshi. "Ours is a walker's city, and when people are out and enjoying themselves, local businesses do well. It's a virtuous cycle that we are proud to support."

"Vibrant, activated streets and storefronts are the heart of New York City, and this new report shows how much progress we have made to support small businesses and local communities," said Dan Garodnick, Director of the Department of City Planning. "Building on this progress, we will continue to drive New York's economic growth and help storefronts and communities thrive in a 21st century economy."

"New York City's prosperity is tied to the vibrancy of our hundreds of miles of commercial corridors," said NYC Department of Small Business Services (SBS) Commissioner Dynishal Gross. "Policies and programs that make it possible for small businesses to operate successfully in neighborhood commercial spaces contribute to safety, lead to job creation and help entrepreneurial New Yorkers live out their dreams. SBS programs, such as NYC BEST (Business Express Service Team), the Commercial Lease Assistance program, and financing assistance programs that have disbursed over $290 million in loans to small businesses in the last two years alone support the launch and operation of storefront businesses citywide. This report shows that our efforts are paying off - and we are just getting started."

"This analysis supports what New Yorkers are already feeling: their streets, parks, and neighborhoods are alive again," said New York City Economic Development Corporation (NYCEDC) President & CEO Andrew Kimball. "The declining storefront vacancy rate is the result of this administration's investments in developing and revitalizing communities across the city. One in eight businesses in New York City started in the last year, showing that small business owners and entrepreneurs are confident in the future of New York City."

"This report offers another strong example of how Open Streets and public plazas help small businesses thrive. When we reimagine our streets to attract more people, we attract more business-and that's been a key part of the city's economic recovery from the pandemic," said Department of Transportation Commissioner Ydanis Rodriguez. "We are grateful to Mayor Adams and the Department of City Planning for commissioning this groundbreaking research that will continue to inform our work."

"This report makes clear what pedestrians in New York have known for years - vibrant public spaces are critical to the success of local businesses and storefronts in NYC," said Ya-Ting Liu, Chief Public Realm Officer. "Through our efforts to expand access to Open Streets, plazas, POPS, and outdoor dining, and our work to reduce the presence of long-standing sidewalk sheds, we are creating more walkable and pleasant spaces for New Yorkers and visitors to enjoy and supporting our small businesses and local economy in the process."

"Thousands of new storefront businesses are breathing new life in our neighborhoods and bolstering the city's economy in the process," said "New" New York Executive Director B.J. Jones. "The Administration's efforts to eliminate outdated zoning requirements and make significant investments in public space are fostering more vibrant commercial corridors for great shopping, dining, and entertainment."

The Storefront Activity in NYC Neighborhoods report tracks the occupancy of more than 143,000 storefronts across the five boroughs, showing the shifting makeup of commercial businesses in New York. This report is made possible based on newly available data from LiveXYZ, allowing for the first time ongoing digital information on openings, closures, and changes in tenancy of every NYC storefront.

The report also reveals a long-term shift toward food, drink, entertainment, and other "experiential" storefront businesses, and away from "dry goods" retail like clothing, electronics, and home goods stores. From the beginning of 2020 to the third quarter of 2024, New York City saw a net addition of 1,350 food, drink, and entertainment businesses, with growth in the sector in all five boroughs. New York is continuing to support the growth of these businesses with the recent adoption of City of Yes for Economic Opportunity, a set of zoning changes to provide a clearer regulatory pathway for entertainment and experiential businesses to open and grow near customers. New York City also fought for, and won, state legislation supporting food and drink establishments by extending temporary permits to more businesses and doubling their duration.

Many Business Improvement Districts (BIDs) have fewer vacant storefronts than their surrounding neighborhoods. SBS continues to support BIDs and other trusted community partners, most recently with a $4 million investment in neighborhood revitalization grants to revitalize commercial corridors and enliven the public realm - building on the Adams administration's historic investment of more than $27 million in neighborhood development since 2022.

The Storefront Activity in NYC Neighborhoods report is the fourth of its kind and the first to use comprehensive Live XYZ data. Its findings will be used to improve and more carefully target policy interventions and public realm improvements to create a more prosperous, vibrant New York.

"Live XYZ is proud to provide NYC with accurate data about every storefront on every block, delivering transformative visibility into what's happening citywide. Data and insights from the NYC Live Map help more than 30 agencies and 90 neighborhood organizations revitalize neighborhoods, allocate resources efficiently, and drive local economic growth," said Jason Greenwald, Live XYZ Founder & CEO.

"With traditional retail sales shifting online leaving vacant retail spaces, consumers seeking exceptional dining and drinking experiences, and various other factors, unique opportunities have emerged to open new restaurants across the five boroughs. However, it's crucial to recognize that smart policies from government leaders that support local entrepreneurship and job creation will remain pivotal in supporting today's entrepreneurs and empowering tomorrow's restaurant owners, as the sector is notoriously challenging. We look forward to continuing to collaborate with Mayor Adams and Director Garodnick's Department of City Planning on policies that foster growth, alleviate unnecessary burdens, and keep our city vibrant," said Andrew Rigie, Executive Director, NYC Hospitality Alliance.

"It's remarkable that New York's storefronts have bounced back so strongly despite being hit by a trifecta of challenges-the pandemic, e-commerce, and remote work. The report makes it clear that New York's retail mix has changed significantly in recent years, and it speaks to why we need a regulatory and zoning framework that is flexible enough to support these evolving uses. Kudos to DCP and the Adams Administration for providing this flexibility with City of Yes," said Jonathan Bowles, Executive Director, Center for an Urban Future.

"Urban Design Forum believes commercial corridors are the spines of New York City neighborhoods," said Daniel McPhee, Executive Director of Urban Design Forum. "Active storefronts and a vibrant public realm reinforce one another to create healthy neighborhoods. We're gratified to read that the Department of City Planning's latest report calls for public space expansion and investment if we want to see even more storefronts filled."

"We are thrilled to see the positive impact of our city programs and nonprofit partnerships on reducing vacancy rates. This is not just a number; it signifies a revitalized community," said Lisa Sorin, President, Bronx Chamber of Commerce. "When local businesses thrive, our neighborhoods bloom- Our small businesses will need continued support from both city and state government to not only stay afloat, but to thrive and expand. Investments in infrastructure, streamlined policies, and direct resources are essential to help create new jobs, stimulate local economic activity, and ensure that our neighborhoods remain vibrant and resilient for years to come. Let's continue to work together, because a stronger Bronx benefits us all!"

"Active storefronts represent the most visible example of a thriving local economy, and the Department of City Planning's recent study paints a clear picture of declining vacancies due to a rebounding business activity throughout NYC," said Randy Peers, President & CEO of the Brooklyn Chamber of Commerce. "City of Yes for Economic Opportunity, open streets programs and continued outdoor dining, along with a host of streetscape and public realm activations, are some of the many tools the Adams administration has employed to fuel our storefronts rebound."

"Although many businesses are still struggling due to inflation and the lingering effects of the pandemic, it is a positive sign that vacancy rates are continuing to decline in New York City," said Linda Baran, President & CEO of the Staten Island Chamber of Commerce. "We also commend the NYC Department of City Planning for leading the charge in analyzing and reporting on this data, which will help inform commercial revitalization investments in targeted areas to ensure vibrant, clean, and robust business districts can thrive."

"The Long Island City Partnership applauds the Department of City Planning on the release of The Storefront Activity in NYC Neighborhoods report. The data in this report is clear and compelling and supports what we already knew: that public/private partnerships are key to economic development in New York City. As one of the City's partners in the public realm, we look forward to our continued work with the Adams Administration to ensure that vacancy trends continue downward," said Laura Rothrock, President of Long Island City Partnership.

"Morris Park BID applauds the administration's efforts to consistently invest in the quality of our public spaces, especially in commercial corridors. The exceptionally low commercial vacancy rate we achieved on Morris Park Avenue in the Bronx as found by Live XYZ, is the result of high-quality, customized Citi-wide policies allowing substantive interventions via innovative programs such as the "Rebuild, Renew, Reinvent" strategy, including the "Small BIDs" grants to business districts like ours. Smart, targeted, public realm investments on commercial corridors create positive results for entire communities. We are excited to continue partnering with NYC Planning and NYCDSBS to elevate standards of excellence for public spaces in the Bronx," said Dr. Camelia Tepelus, Executive Director, Morris Park BID.

"The Meatpacking District has focused on improving the pedestrian experience for years, which the report states is key to revitalizing commercial corridors," said Jeffrey Lefrancois, Executive Director of the Meatpacking Business Improvement District. "By working to improve the quality of life through vibrant, accessible spaces, business has improved, residents enjoy a thriving streetscape, and we have celebrated new openings in the neighborhood, including Leica, Zegna, and just recently announced Baccarat's opening in the District."

"Iconic streets like Brooklyn's Atlantic Avenue require stewardship, advocacy, and investment," said Kelly Carroll, executive director, Atlantic Avenue BID. "Having a BID in place coupled with the consistent support of City programs allowed us to accelerate our recovery. The sum of these parts? A lower vacancy rate than before Covid, new businesses opening every month, and the cleanest and greenest Atlantic Avenue has ever been."

"We're encouraged to see the momentum building across New York City as storefronts come alive again, signaling a positive shift for our neighborhoods and economy," said James Mettham, President of the Flatiron NoMad Partnership. "More than ever, we're seeing how investing in public realm improvements and activating our public spaces can create a more engaging and resilient city for everyone. In the Flatiron and NoMad districts, we're proud to be at the forefront of this movement, transforming our streets into vibrant, inviting spaces where people come to connect, explore, and spend time."

"With the adoption of City of Yes for Economic Opportunity we can look forward to greater flexibility in the types of businesses that can open in Downtown Brooklyn - particularly along Fulton Mall, the heart of our shopping district. With the increase in experiential retail we are seeing, this is a big win. In addition, the Dept of Parks and Recreation is currently implementing the $8M Fulton Mall Revitalization project that will further support pedestrian activity and neighborhood vitality. Improvements such as these, alongside smart planning, are helping NYC retail get back on its feet," said Regina Myer, President, Downtown Brooklyn Partnership.

"In Union Square, experiential uses are once again dominating ground floor leasing. As a neighborhood rooted in New York City's restaurant culture, the district's latest wave of new sit-down restaurants and bars has been a welcome sign of economic recovery," said Julie Stein, Executive Director of Union Square Partnership. "Over 28,000 SF was leased in the first three quarters of 2024, we welcomed 15 new businesses in the third quarter alone, and an additional 22 businesses will open soon. This analysis also proves that public realm investments lead to fewer vacancies and livelier streets, which is why we continue to advocate for the USQNext Vision Plan to improve our district's public spaces, parks and streetscapes."

Department of City Planning
The Department of City Planning (DCP) plans for the strategic growth and development of the City through ground-up planning with communities, the development of land use policies and zoning regulations applicable citywide, and its contribution to the preparation of the City's 10-year Capital Strategy. DCP promotes housing production and affordability, fosters economic development and coordinated investments in infrastructure and services, and supports resilient, sustainable communities across the five boroughs for a more equitable New York City.

In addition, DCP supports the City Planning Commission in its annual review of approximately 450 land use applications for a variety of discretionary approvals. The Department also assists both government agencies and the public by advising on strategic and capital planning and providing policy analysis, technical assistance and data relating to housing, transportation, community facilities, demography, zoning, urban design, waterfront areas and public open space.

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