Lower Manhattan is turning into a live, work-and-play hub, according to the Alliance for Downtown New York.
According to the organization, a surge in retail activity and several high-profile residential and hotel openings south of Chambers Street continued to help build lower Manhattan’s reputation as a premier mixed-used neighborhood.
Jessica Lappin, president of the Downtown Alliance, said, “From restaurant and retail openings to hotel and housing growth, to the city’s largest office lease deal of the year, lower Manhattan was making headlines on a weekly basis. That momentum will continue through the early part of 2017 as we already see a number of major deals on the horizon.”
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The city’s largest office deal Lappin referred to was the recommitment of McGraw Hill Financial to its 900,000-square-foot space at 55 Water Street. Other activity last year included the opening of more than 200 stores and restaurants, six residential properties and seven hotels, according to data from the Downtown Alliance. At the end of the year, totals grew to 658 stores, 512 eateries, 323 residential and mixed-use buildings and 30 hotels. Among the new additions were retailers Apple and Saks Fifth Avenue, and restaurants from noted chefs such as Mario Batali, Tom Colicchio, Keith McNally and Wolfgang Puck. Two hotels that opened were the Four Seasons Hotel New York Downtown and The Beekman.
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The Downtown Alliance data indicated that commercial office leasing was driven by current tenants who renewed or expanded within the neighborhood. The renewal trend was strong among the district’s financial, insurance and real estate tenants, as well as government offices. Also strong was the growing presence of technology, advertising, media and information firms, which more than doubled last year. That growth rate hit 13 percent from 5 percent office occupancy over the last eight years, Downtown Alliance said. The group noted that as the presence of tech, media and creative firms has grown, the financial, insurance and real estate tenants have reduced their footprint in the area. The latter group of tenants now occupies 37 percent of the office space, down from 55 percent eight years ago.
The organization also said that growing industries seeking space in Lower Manhattan include professional and business services, as well as companies in the apparel and retail trade.
The current asking rates are at historic highs, or about $59 a square foot.