Lower Manhattan Real Estate Overview, Q1 2022
The Alliance for Downtown New York’s first quarter report provides data on commercial office, retail, residential, hospitality and development projects. Major findings include:
Commercial Leasing Activity Increasing, But Office Availability Continues To Grow
The first quarter saw Lower Manhattan office leasing reach 884,000 sq. ft. — the second highest quarterly total since the pandemic began, but still 21% below the five-year quarterly average. While leasing was relatively robust, rents continue to inch downward and vacancies are growing, particularly in Class B office buildings.
Median Apartment Rents Continue to Soar
Median residential rents in Lower Manhattan hit $4,400 — $1,400 higher than the pandemic lows at the beginning of 2021. This is the third consecutive quarter where Lower Manhattan’s median rent broke record highs. Demand and prices appear poised to increase further as pandemic-discounted leases have expired and employers move forward with firmer return-to-office plans.
New Retail Openings and Reopenings Abound
35 retailers opened so far this year, including Blue Ribbon Sushi Bar & Grill, ZAZA Diner and QC NY Spa on Governors Island. A few notable Lower Manhattan retailers that were thought to have permanently closed during the pandemic reopened or announced plans to reopen, like Manhatta, Parm and GAP.
Tourism Begins To Rebound
Lower Manhattan welcomed 5.7 million tourists in 2021 as domestic travel began to resume and international travel restrictions eased. The share of international visitors steadily increased to 28% and are anticipated to rise higher throughout 2022. Two new hotels also opened: Hyatt Centric and Hotel Indigo.
Check out our COVID recovery dashboard for more information on our initiatives and trends we’re seeing across real estate, transportation, population and pedestrian traffic in the district.