2024 Lower Manhattan Real Estate Year in Review
The Alliance for Downtown New York’s annual year-in-review report provides data on commercial office, retail, residential, hospitality and development projects from 2024. Major findings include:
Office Market Struggles With Leasing in 2024, Year End Net Absorption Is Positive
Lower Manhattan’s office market experienced its weakest leasing activity on record, with only 2.24 million sq. ft. leased — a 21% decline from 2023. However, positive absorption of 1.13 million sq. ft. suggests that office supply is adjusting, aided by conversions of older and underperforming properties into residential spaces.
Tourism Thrives as Hotel Occupancy Reaches Record Highs in Q2 and Q3, ADR Sets New Record in Q4
Lower Manhattan’s tourism sector continues to rebound strongly, with hotel occupancy returning to pre-pandemic levels. The district set a new record for the highest average daily room rate (ADR) at $363.16, continuing a trend of increased visitor activity and demand for accommodations.
Residential Conversions Accelerate in 2024 as Rents Remain High and Condo Sales Continue to Fall
Five major office-to-residential conversion projects were announced in 2024, adding over 3,200 new units. Despite a slight dip in condo sales, rental prices remained near record highs, with a median rent of $4,600, 10% greater than the Manhattan-wide figure.
Retail Scene Sees Evolution as Sports and Recreational Venues Increase and New Dining Experiences Open
Lower Manhattan’s retail scene expanded significantly, with openings outpacing closures. New dining experiences emerged, such as All’Antico Vinaio and Yao NYC, an upscale Chinese restaurant. The district also welcomed innovative fitness and recreation spaces such as Baseball Pill, a batting cage facility at 140 Church St., complete with an in-house smoothie bar for athletes. The Seaport Entertainment Group announced plans to transform Pier 17 into a year-round entertainment venue, reinforcing Lower Manhattan as a cultural and leisure hotspot.
Read the report below, or download a PDF here.