By Matthew DeRose – CEO, Nomad Group

Snapshot

SoHo has roared back to life in the first half of 2025. Luxury retailers are snapping up flagship storefronts, venture‑backed firms are inking loft leases, and institutional money is circling cast‑iron assets—all while Manhattan posts its strongest year of leasing since the pandemic. Below, we break down the numbers, the deals, and what they mean for tenants on the hunt for space.

Key Stats at a Glance

Office Leasing Momentum

• General Catalyst relocated its HQ to 148 Lafayette St. (42.5 K SF), signaling continued VC appetite for SoHo loft product.
• Sabio (ad‑tech) and MiddleGround Capital each grabbed full‑floor spaces at 10 Crosby St. (8.4 K SF).
• A confidential creative tenant is negotiating ±60 K SF at historic 568 Broadway, following the building’s $50 M lobby and roof‑deck upgrade.

Why it matters: Three consecutive quarters of positive absorption confirm that SoHo’s office market has turned the corner, yet elevated availability keeps leverage in tenants’ hands for the rest of 2025.

Retail Renaissance

Luxury and direct‑to‑consumer brands are driving the comeback:

• Skin1004 (K‑beauty) planted its first U.S. flagship at 470 Broadway (6.6 K SF).
• Los Angeles Apparel debuted a 24.7 K SF showroom/retail hybrid at 480 Broadway.
• International labels from Ferrari to emerging Korean designers are clustering along Broadway, Spring and Prince Streets, pushing prime rents back toward four‑figure territory.

Foot traffic is now 10 % above 2019 levels, and SoHo & Madison Avenue were the only two NYC corridors to register YoY rent gains in Q1.

Capital Markets

• Blackstone led the charge, acquiring a four‑building SoHo portfolio in a $197 M city‑wide retail play—the largest NYC retail purchase since 2021.
• Meadow Partners is in contract to buy 200 Lafayette St. for $40 M.
• Tishman Speyer is negotiating ±$120 M for 148 Lafayette St., highlighting institutional conviction in upgraded loft assets.

Investor takeaway: With virtually no ground‑up construction in the pipeline, value‑add plays and condo carve‑outs are the name of the game.

Development & Supply

Metro‑wide office construction has fallen from 22 M SF (early 2021) to 9.4 M SF (mid‑2025). SoHo currently has no major projects underway, a pause that helps cap new supply but also underscores the importance of building upgrades. Top‑tier properties still carry a 30.2 % availability rate—meaning renovated lofts with modern amenities will capture outsized demand.

Outlook & Tenant Strategy

• Negotiating Power Remains: With availability well above the metro average, tenants can still secure double‑digit concession packages through year‑end.
• Flight‑to‑Quality Continues: Creative firms gravitate toward upgraded lofts; older, unrenovated buildings will lag unless repositioned.
• Retail Upside: Brands seeking high‑visibility flagship space should act quickly—prime blocks along Broadway are tightening fast.
• Early‑Mover Advantage: Expect modest rent growth (1 – 2 %) over the next 12 months; locking in now preserves flexibility before landlords regain full pricing power.

Ready to Explore SoHo?

Whether you’re scouting a flagship retail box or a light‑filled loft HQ, Nomad Group has a live pulse on every upcoming availability—on and off‑market. Tap our “📷 Virtual Walkthrough” library, crunch numbers with our Office Space Calculator, and leverage our portfolio of 2 M SF across Manhattan to secure the perfect fit.

Let’s talk. Contact us to schedule a curated tour or request a deal‑term analysis.