Times Square, often referred to as “The Crossroads of the World,” has long been a focal point for both tourists and businesses in New York City. As one of the most iconic retail hubs globally, Times Square has experienced significant changes in its tenant mix and consumer trends, particularly in the wake of the COVID-19 pandemic. From 2020 to 2024, the area’s commercial real estate landscape has evolved in response to shifting consumer behaviors, economic challenges, and the increasing influence of e-commerce and omnichannel strategies.
In the early 2020s, the pandemic led to a downturn in retail activity as foot traffic plummeted and many businesses shuttered. However, as New York City recovered, Times Square began to reimagine itself, focusing on experiential retail and digital integration. This period saw a pivot from traditional retail models to spaces that blend entertainment, dining, and shopping, aiming to attract both tourists and locals in a post-pandemic world.
Surge in Tourism and Foot Traffic
One of the most significant positive changes in Times Square’s commercial real estate has been the resurgence of foot traffic as tourism rebounded by 2023. The area has attracted a diverse mix of tenants, with many global brands choosing to invest in flagship stores that offer unique, immersive experiences. For instance, the introduction of the NFL Experience and Hershey’s expanded flagship store in Times Square highlights a shift toward experiential retail, where the focus is on creating memorable interactions rather than just selling products.
According to the Times Square Alliance, foot traffic in Times Square reached over 300,000 pedestrians per day by mid-2023, a notable increase from the 100,000 daily visitors recorded in 2020 during the height of the pandemic. This resurgence reflects a broader recovery in New York City’s tourism sector, which saw a 71% increase in international visitors between 2021 and 2023, as reported by marketing arm NYC & Company. This revitalization has fueled consumer spending in the area, with retail sales in Times Square contributing significantly to the city’s overall economic recovery.
The surge in tourism and foot traffic has also had a positive impact on cash flow in New York’s commercial real estate sector. In 2023, retail and tourism-related commercial properties in Manhattan, including Times Square, saw a 15% increase in cash flow compared to 2020 levels. This rise is attributed to the return of high-spending international tourists and the renewed interest from global retail brands seeking prime locations in the city. According to investment firm CBRE, the retail sector in New York City generated an estimated $5.8 billion in leasing activity in 2023, marking a strong recovery from the $3.2 billion recorded in 2020, highlighting the critical role that tourism and retail have played in revitalizing the city’s commercial real estate market.
From Longacre Square to Modern Retail Powerhouse
Early 1900s-1920s: The Birth of Times Square
Times Square, originally known as Longacre Square, was renamed in 1904 after The New York Times moved its headquarters there, marking the beginning of its transformation into a cultural and commercial hub. During this period, the area quickly became known for its vibrant entertainment offerings, with theaters, hotels, and restaurants attracting crowds. The construction of the Aeolian Building in 1913, the first skyscraper in Times Square, further established the area as a burgeoning commercial district. By the 1920s, Times Square had solidified its reputation as the heart of American entertainment, drawing millions of visitors to its theaters and cinemas.
1930s-1940s: The Golden Age of Times Square
The 1930s and 1940s are often referred to as the Golden Age of Times Square, as the area became synonymous with American pop culture and entertainment. It was during this period that Times Square’s famous bright lights and billboards became iconic symbols of New York City. The area hosted countless events and gatherings, including the legendary V-J Day celebration (Victory over Japan Day marking the end of World War II) in 1945 which drew massive crowds and further cemented Times Square’s status as a central gathering place for both New Yorkers and tourists.
1990s: The Disneyfication of Times Square
The 1990s brought about a dramatic transformation for Times Square, often referred to as its “Disneyfication.” An aggressive campaign was launched to clean up the area, focusing on reducing crime and attracting family-friendly businesses. Disney’s purchase and renovation of the New Amsterdam Theatre in 1993 marked a turning point, signaling a broader effort to rebrand Times Square as a safe, vibrant destination for tourists and locals alike. The influx of major retail brands and the development of flagship stores during this period helped restore Times Square’s status as a premier commercial and entertainment hub.
2000s-2010s: A Modern Retail Powerhouse
Entering the 2000s, Times Square solidified its reputation as a global retail powerhouse. The area saw the introduction of massive LED billboards and the establishment of flagship stores by major tech and fashion brands, further enhancing its appeal. In 2010, the creation of the Times Square pedestrian plaza transformed the area into a more pedestrian-friendly environment, making it an even more attractive destination for shopping, dining, and entertainment.
Rising Commercial Real Estate Market
In the 2020s, Times Square has firmly established itself as a premier retail destination, with flagship stores from global giants such as Disney, M&M’s World, Nike, and Sephora dominating its streets. In 2024, this vibrant retail environment has had a positive impact on commercial real estate, with a 20% increase in leasing rates compared to pre-pandemic levels, driven by high demand for prime locations. The presence of other major brands, including H&M, Uniqlo, and Levi’s, has also contributed to a significant rise in property values, making Times Square one of the most sought-after retail locations globally.
Looking forward, the future of Times Square will likely depend on its ability to continue innovating and adapting to new economic realities. As the commercial real estate market evolves, Times Square must balance the demands of a global tourist destination with the changing needs of local consumers, ensuring it remains a vibrant and profitable retail hub in New York City.
