Lower Manhattan Real Estate Overview, Q1 2020
The Alliance for Downtown New York is pleased to release the Q1 2020 Lower Manhattan Real Estate Market Report providing a review of commercial office, retail, residential, hospitality and development projects. The COVID-19 pandemic has pushed the world into unprecedented public health and economic crises. The New York City market, and Lower Manhattan particularly, however are no strangers to disruption — having weathered September 11, the global financial crisis of 2008-2009 and Superstorm Sandy.
Major findings during the first quarter include:
- Commercial Leasing – After strong momentum in 2019, leasing activity slowed down overall in Lower Manhattan due to the COVID-19 crisis with 1.18 million sq. ft. of office leases signed, down 30% from the previous quarter and 10% below the five-year quarterly average. FIRE and TAMI tenants drove the bulk of activity.
- Retail – Approximately 23% of Lower Manhattan retailers remained open during the COVID-19 pandemic, primarily those retailers providing services deemed “essential” by Governor Cuomo.
- Incentive and Grant Programs
- Successful Renewal of Commercial Office Leasing Incentives – The New York State Legislature voted to renew and extend four different leasing incentives that have proven to be critical in attracting companies and good-paying jobs to Lower Manhattan. Details here.
- Small Business Rental Assistance Grant Program – The Downtown Alliance, with support from major Lower Manhattan property owners, launched an $800,000 grant program to offer immediate rental assistance to qualifying storefront businesses. Details here.