American Express Deal Highlights Otherwise Subdued Leasing Quarter in Lower Manhattan

Lower Manhattan’s office market cooled in the first quarter of 2026, according to the Alliance for Downtown New York’s report on the neighborhood’s real estate market. However, while it was not included in the leasing total, the biggest news for the downtown office market was the announcement of American Express signing a deal with Silverstein Properties and the Port Authority to build 2 World Trade Center, which will complete the commercial rebuilding of the World Trade Center.  

In the first quarter, Lower Manhattan reported 908,000 square feet of new leasing. Downtown’s leasing activity was driven by small and midsize leases for the quarter, in contrast to recent quarters where large leases have inflated totals. While this total represented a drop quarter-over-quarter and year-over-year, it was still 12% above the five year quarterly average and the second highest first quarter leasing total since the beginning of the pandemic. The vacancy rate finished the first quarter at 22.3%, a 0.1% increase from the last quarter of 2025. 

The largest new lease of the quarter was signed by technology firm TeamGuard, who moved from Midtown South to 120 Broadway in a 51,220 square foot deal. TeamGuard was one of six businesses that relocated to Lower Manhattan in the first quarter. The largest deal of the quarter was SHoP Architects’ 56,196 square foot renewal and expansion at 233 Broadway.

Lower Manhattan reached a major milestone in the first quarter with the announcement of plans to build 2 World Trade Center, anchored by tenant American Express. The nearly 2 million sq. ft. tower will serve up to 10,000 employees and will be the company’s corporate headquarters. It marks the first major new office construction downtown in over six years. The project is expected to be completed in 2031.  

“While the office market cooled slightly in Q1, American Express’s recommitment to Lower Manhattan underscores a strong and promising future for the district. Major firms such as SHoP Architects and McKinsey & Co. are also reaffirming their presence, with several expanding their footprint downtown,” Downtown Alliance president Jessica Lappin said.

Lower Manhattan welcomed 20 new retail establishments to the neighborhood during the first quarter of 2026. Approximately two-thirds of the openings consisted of F&B establishments. The quarter’s new openings are headlined by the much anticipated arrival of Golden Mall at 47 Broadway. The pan-Asian food hall is the first Manhattan outpost for the Flushing-based establishment. 22 new retail locations are coming soon, including a Uniqlo location at Westfield World Trade Center and Six Coasts, a new dining concept by Smorgasburg opening on Governors Island in May.  

Tourism has also continued to stay strong. The district reported 10.3 million unique visitors in 2025. Correspondingly, the neighborhood’s hotels enjoyed another quarter of strong occupancies at 86%, a Q1 record and 9% higher than Q1 of 2025.. Lower Manhattan’s Average Daily Room Rates also posted its highest Q1 on record at $332. The current hotel inventory for the neighborhood stands at 7,928 rooms across 41 hotels. 

Read the full report here.