Lower Manhattan Continues to See Incremental Progress With an Uptick in Commercial Activity and Significant Residential Demand
Lower Manhattan continued to see positive activity in the third quarter. Commercial leasing marked the highest quarterly total since the beginning of the Covid-19 pandemic, and median residential rents set new records, according to the Alliance for Downtown New York’s Lower Manhattan Real Estate Market Report, Q3 2021.
The third quarter saw Lower Manhattan record 775,000 sq. ft. of office leasing, according to CBRE — the highest quarterly total since the pandemic began. While the quarter’s leasing was up 31% from the previous quarter and 70% year over year, it was still 32% lower than the five-year quarterly leasing average. Momentum is expected to continue over the coming months as Newmark reports that nearly 260 tenants are looking for a total of 12.2 million sq. ft. of office space across New York City, surpassing levels seen in the first nine months of 2019 and 2020.
“We continue to celebrate small wins across Lower Manhattan,” said Jessica Lappin, president of the Alliance for Downtown New York. “From a growing demand to live in Lower Manhattan, and the arrival of new businesses like the Alamo Drafthouse, to steady increases in the commercial leasing, things are moving in a positive direction.”
Demand for residential units near office buildings soared in the third quarter. According to statistics from Miller Samuel/Douglas Elliman, the median rent in Lower Manhattan surpassed a record high set in 2019, reversing the decline seen throughout the pandemic.
Additionally, more than 70 new retailers opened in the district while the pace of pandemic-related closures has slowed considerably with 17 businesses closing in the third quarter.
Read the full Lower Manhattan Real Estate Market Report, Q3 2021.