Rebounding Residential Activity and Retail Openings Show Incremental Progress in Lower Manhattan
Lower Manhattan saw positive momentum across the residential market during the second quarter as demand for residential units near office buildings drove sales and median rents to pre-pandemic levels, according to the Alliance for Downtown New York’s Lower Manhattan Real Estate Market Report, Q2 2021. The report also notes that retail openings were on pace with those of early 2019, as 40 new businesses opened their doors so far in 2021, including Momofuku’s Ssäm Bar, Andrew Carmellini’s Italian chophouse Carne Mare, casual burger and ice cream spot Mister Dips, a fitness center, and two barbershops.
The quarter also saw the commercial real estate market continue slowly upward with 591,000 sq. ft. of office leasing — an increase of 32% over Q1 and the highest quarterly total since the pandemic began, but still 49% lower than the five-year quarterly leasing average. Activity reflected similar trends in Midtown and Midtown South. And, while office vacancies remain high, rents have been relatively stable.
“Recoveries always take time and what we’re seeing now in Lower Manhattan are the slow and steady steps toward a return,” said Jessica Lappin, President of the Alliance for Downtown New York. “Incrementally, we’re seeing an uptick in activity, and we remain hopeful that that will continue to grow.”
Read the full Lower Manhattan Real Estate Market Report, Q2 2021.