Lower Manhattan Real Estate Overview, Q3 2021

Lower Manhattan Real Estate Overview, Q3 2021

The Alliance for Downtown New York’s third-quarter report provides data on commercial office, retail, residential, hospitality and development projects. Major findings include:

Commercial Leasing Activity Increasing, Office Workers Returning

The third quarter saw Lower Manhattan office leasing reach 775,000 sq. ft. — the highest quarterly total since the pandemic began, but still 32% below the five-year quarterly average. Around 30% of employees have returned to their offices. A larger return to office was delayed till early 2022 due a rise in Covid cases. 

Demand For Rentals Soar

Median residential rents in Lower Manhattan surpassed a record high set in 2019, reversing the decline seen throughout the pandemic. Median residential rents are now $1,100 higher than those at the beginning of 2021.  The expectation of return-to-work mandates, an influx of professionals and college students returning to the city, and widespread expiration of pandemic-discounted leases caused demand for new rentals to soar over the third quarter. 

Full-Service Restaurants And New Movie Theater Open

Over 70 retailers opened so far this year, ranging from full-service restaurants to a new 14-screen Alamo Drafthouse.

New Hotels Open As Business Travel And Tourism Begin To Resume 

Bookings steadily increased as tourism and business travel started to rebound. Two new hotels opened, and two existing hotels reopened after temporary closings. Three more new hotels are anticipated to open by the end of this year.

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.