Res. No. 730
Resolution calling on the Metropolitan Transportation Authority to revitalize vacant retail spaces and newsstands in the subway system, conduct a study on the development of new retail opportunities and improved utilization of the existing spaces, and establish a preference for veteran-owned businesses in the leasing and operation of such spaces
By Council Members Riley, Williams and Wong
Whereas, New York City’s (NYC the “City”) subway system was once a thriving underground marketplace, filled with newsstands, candy shops, and shoe-shine stands that served commuters while providing small entrepreneurs with pathways to economic mobility; and
Whereas, Over time, there has been a sharp decline in the occupancy and utilization of these retail spaces due to changing consumer habits, including the rise of online shopping, digital media consumption, and increasing operating costs associated with inflation; and
Whereas, During the COVID-19 pandemic between 2020 and 2022, the Metropolitan Transportation Authority (MTA) experienced significant vendor attrition, further accelerating the decline of an already struggling retail ecosystem; and
Whereas, According to Crain’s New York Business, in March 2019 the MTA maintained approximately 326 retail spaces, of which roughly 130, or about 40 percent, were vacant, and by 2024 vacancy rates had climbed significantly, with only about 57 retail spaces occupied, representing vacancy levels exceeding 80 percent; and
Whereas, More recent estimates by Commercial Observer suggest that, although some recovery has occurred, vacancies remain substantial, with approximately 62 out of 203 retail spaces, or about 30 percent, still unoccupied in 2025; and
Whereas, As many subway retail spaces and newsstands sit vacant, the MTA generally relies on a formal Request for Proposals (RFP) process to lease these spaces to private businesses, allowing vendors to compete for opportunities to operate retail units within stations based on financial viability and service offerings; and
Whereas, In addition to traditional leasing models, the MTA launched the Vacant Unit Activation Program in 2023, dedicating approximately 30 vacant retail spaces to artists, nonprofit organizations, and cultural programming as a temporary strategy to activate underutilized storefronts; and
Whereas, Despite these efforts, the MTA continues to face challenges in attracting and retaining tenants, suggesting the presence of structural barriers within the leasing process, regulatory environment, and broader economic conditions; and
Whereas, In addition to lost opportunities for revenue generation and job creation, vacant retail spaces and newsstands contribute to perceptions of disinvestment and may create safety and quality-of-life concerns, including unauthorized use and illegal vending; and
Whereas, To address these challenges, the MTA must continue to revitalize vacant retail spaces, conduct a study examining their facilities and properties for the potential development of new or improved retail spaces, and to determine best usages for their existing spaces; and
Whereas, Such a study should examine vacancy rates, barriers to entry for vendors, the effectiveness of the MTA’s RFP process, opportunities for regulatory reform, and identify potential locations and strategies for the development of new and sustainable retail spaces; and
Whereas, Additionally, the study should assess their current facilities and evaluate opportunities to activate underutilized retail spaces with convenient, grab-and-go food and beverage options, including coffee kiosks and quick-service vendors, to better serve commuters and increase foot traffic; and
Whereas, The study should further include recommendations to increase accessibility to these opportunities for small businesses, including the feasibility of establishing targeted outreach, incentives, or preference programs for veteran entrepreneurs, who often face disproportionately high barriers to employment and business ownership; and
Whereas, A comprehensive evaluation of the MTA’s retail leasing practices and broader transit retail strategies would provide critical insight into the causes of persistent vacancies and identify opportunities to streamline access, reduce barriers for entrepreneurs, and maximize the use of public assets; now, therefore, be it
Resolved, That the Council of the City of New York calls on the Metropolitan Transportation Authority to revitalize vacant retail spaces and newsstands in the subway system, conduct a study on the development of new retail opportunities and improved utilization of the existing spaces, and establish a preference for veteran-owned businesses in the leasing and operation of such spaces
LS #21617
6/5/2026
M.B.