Lower Manhattan Real Estate Overview, Q2 2020
The Alliance for Downtown New York announces the release of the Q2 2020 Lower Manhattan Real Estate Market Report providing a review of commercial office, retail, residential, hospitality and development projects.
New York City emerged as the epicenter of the pandemic in the second quarter, with lockdowns keeping all but only essential workers at home. The dual public-health and economic crises created dramatic slowdowns across all sectors. Major findings during the second quarter include:
- Commercial Leasing – The second quarter saw Lower Manhattan office leasing slow to just 516,000 sq. ft. Leasing activity was down 56% from the first quarter and 60% below the five-year quarterly average as real estate decisions were put on hold. While leasing was limited, there were a few notable office recommitments to Lower Manhattan.
- Retail – Nineteen retailers have permanently closed since the pandemic began. While some closures were long planned, others were directly attributable to the shutdown. It remains to be seen how the current crisis will precisely impact the reopenings of existing establishments and openings of planned retailers, but the permanent closures are expected to be significant.
- Hotel – Two hotels announced permanent closures: The Assemblage at 17 John Street and the W New York Downtown at 8 Albany Street.
- Downtown Alliance Programs To Help Small Businesses
- The Alliance has partnered with BentoBox to assist eligible restaurants with setting up their own easy online ordering platforms. The plug-and-play e-commerce experience can be customized for each business and allows them to take orders without the use of other third-party apps. The program will cover one year of services. Details here.
- The Alliance is also working with Streetsense, a retail and urban-design consultancy, to provide up to 25 small businesses with one-on-one technical assistance to transform their spaces to be COVID-compliant. Details here.