By: Daisy Fay Buchanan

Third Avenue on Manhattan’s Upper East Side — long seen as the practical, workhorse cousin to glitzy Madison Avenue — is experiencing a surprising and steady retail resurgence. According to a recent report by the New York Post, the once-vacant corridor north of Bloomingdale’s is seeing a wave of new commercial activity, signaling broader recovery trends in Manhattan’s retail landscape.

As the NY Post reported, vacancy rates along the stretch between East 59th and East 79th streets have plummeted from a pandemic peak of 25.9% in late 2020 to just 8.4% in mid-2025, based on data from Cushman & Wakefield. That shift represents a major turnaround in one of Manhattan’s most historically stable but modestly glamorous neighborhoods.

“That’s a very low rate,” Cushman & Wakefield’s Steven Soutendijk told the Post, adding that much of the remaining vacant square footage is clustered around Bloomingdale’s flagship at 1000 Third Avenue — notably in large, hard-to-fill former big-box locations like the now-vacant Home Depot space.

While Madison Avenue attracts global fashion houses and luxury flagships, Third Avenue’s appeal lies in its accessibility and dependable foot traffic from residents and professionals alike. It’s not flashy, but it’s consistent — and in retail, consistency sells. “Its consistency and strong demographic base continue to attract high-quality tenants,” James Famularo of Meridian Retail told the Post.

Asking rents currently range from $150 to $400 per square foot, depending on block and visibility, with an average asking rent of around $246. That price point has proven appealing to national retailers looking to reenter the Manhattan market without overextending financially.

One of the most notable new arrivals is trendy fashion retailer Brandy Melville, which is opening at 1172 Third Avenue between East 68th and 69th Streets — a space previously occupied by CVS and a series of short-lived pop-ups. Nearby, Blinds to Go has taken over half of the retail footprint at 1011 Third Avenue between East 60th and 61st Streets, while Whole Foods Daily Shop has moved into the space formerly home to the Food Emporium.

Also making headlines is Workshoppe Fitness, a four-story boutique workout facility coming to 1120 Third Avenue, along with Felice — a beloved Italian trattoria — which is set to replace a longtime diner at Trump Plaza on East 64th Street. These new tenants reflect a return to physical-product retail and services after years of domination by wellness chains, urgent-care clinics, and pet grooming storefronts.

As the NY Post pointed out, several high-profile and high-rent spaces directly across from Bloomingdale’s remain dormant. The prominent corner of 200 East 59th Street — a luxury development by Harry Macklowe — still sits empty, and Ikea’s short-lived “studio” experiment at 999 Third Avenue has yet to attract a successor.

Still, leasing velocity is brisk just a few blocks north. “Small space in the high 60s and 70s gets leased very quickly, and it’s a very diverse mix of traditional apparel, groceries, restaurants and services,” Soutendijk explained.

Experts say the comeback of Third Avenue retail could serve as a broader indicator of Midtown East’s retail stabilization. According to the Real Estate Board of New York, ground-floor retail availability has been declining slowly across Manhattan.

While the avenue might never have the luxury cachet of Fifth or Madison, its reliability is drawing interest once again. For retailers and real estate watchers alike, Third Avenue’s rebound is a welcome sign that physical storefronts — and neighborhood-based shopping — still matter in a digital age.