Lower Manhattan Real Estate Overview, Q2 2024

The Alliance for Downtown New York’s quarterly report provides data on commercial office, retail, residential, hospitality and development projects from Q2 2024. Major findings include:  

Downtown Leasing Inches Up 1%, Achieves Positive Net Absorption for Second Straight Quarter

Lower Manhattan recorded 589,000 sq. ft. of leasing activity, a 1% quarter over quarter increase but a 48% year over year decline. Net absorption was positive for the second straight quarter, and the tech sector led leasing again, taking up 36% of all new space leased. Stripe, a financial services and software company, had the largest lease of the quarter, taking 147,509 sq. ft. at 28 Liberty St. The financial services and legal sectors had an equal share of leasing, both at 15%.

Vacancy Rates Remain Stable

Lower Manhattan’s overall vacancy rate remained largely flat in Q2, falling slightly to 24.6% over the quarter. Downtown’s Class A vacancy also improved marginally over Q1, ending Q2 at 23.9%. Vacancy in the Midtown and Midtown South submarkets reached new highs as Midtown South set an overall vacancy record of 25.3%. 

Food and Beverage Leads Q2 Retail Openings

13 food and beverage businesses opened during the second quarter while only one shopping location, the Chinese lifestyle brand Miniso, opened. 

Hotel Occupancy and Average Daily Room Rate (ADR) Reach New Heights

Lower Manhattan’s second quarter occupancy rate was 89%, the highest rate on record. Even with the Midtown and city-wide markets improving, the downtown rate was still higher. The ADR also reached a new height of $317.06, the highest Q2 value on record.