2023 Lower Manhattan Real Estate Q4 and Year in Review Report by Alliance for Downtown New York

2023 LOWER MANHATTAN REAL ESTATE Q4 AND YEAR IN REVIEW REPORT

Lower Manhattan Real Estate Year in Review | 2021

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2023

LOWER MANHATTAN REAL ESTATE YEAR IN REVIEW EXECUTIVE SUMMARY Lower Manhattan continued to demonstrate its resilience in 2023 as the district adjusted more fully to the emerging contours of the post-pandemic economy. New Yorkers and visitors continued to discover — or rediscover — all that Lower Manhattan has to offer as pedestrian counts rose, hotel occupancy approached pre-pandemic levels and more employees returned to their offices. Lower Manhattan’s shopping and dining scene also continued to grow and diversify. The stunning and long-awaited Ronald O. Perelman Performing Arts Center launched its inaugural season of programming. And more and more New Yorkers are choosing to live in Lower Manhattan, growing the neighborhood’s already sizable residential population and further cementing Lower Manhattan as a residential neighborhood of choice.

Legacy Industries Anchor Office Leasing as Vacancy Rates Stabilize All three Manhattan office submarkets continued to face substantial challenges in 2023. Overall leasing totals for the year declined across the borough. Lower Manhattan finished the year with a little over 2.8 million sq. ft. of leasing activity, a decline of 9.1% from 2022. Leasing activity in Midtown and Midtown South suffered even steeper declines while the activity across the borough ended the year over 18% below 2022.

The diversity of Lower Manhattan’s office market helped lessen the blow of a down year across the market. Government tenants, long a countercyclical anchor for the Lower Manhattan economy, powered over 37% of downtown leasing this year. Several large tenants including Tower Research Capital and StubHub relocated to Lower Manhattan, demonstrating the district’s continued appeal to tenants seeking more affordably priced high quality office space with exceptional transit access. Office vacancy rates remained relatively stable over the year and even showed some very modest improvements toward the end of the year. This contrasts with the other Manhattan submarkets where vacancy increased in the second half of the year. More workers returned to their offices in 2023 as well. According to Placer.ai data, midweek office occupancy grew to 71.5%, representing a 30% increase across a range of office types in Lower Manhattan as compared with 2022. The challenges ahead are estimable. Large blocks of space have lingered on the market, leasing remains sluggish and vacancy is still historically high across all asset classes.

Travel Continues to Return as Retail Offerings Grow Tourism continued to rebound in 2023. Hotel

Lower Manhattan Real Estate Year in Review | 2023

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occupancy reached 85% in the fourth quarter of 2023, nearly matching the final quarter of 2019. Room rates have also been robust. Increased tourism is evident in the district’s growing volume of pedestrian traffic, which continued to recover from the pandemic, increasing nearly 8% over the course of the year.

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of Art and Technology, has opened at 21 Dey St. The museum offers 36,000 sq ft. of immersive installation spaces at the crossroads of art and technology. PAC NYC and Mercer Labs join a growing lineup of arts and entertainment options in Lower Manhattan.

Lower Manhattan’s already diverse dining and shopping scene continued to grow in 2023. 81 new businesses opened in the district. New dining and drinking options range from fine dining spots like Marcus Samuelsson’s Metropolis and the reimagined Delmonico’s, to more casual eateries like Sixpoint Brewery’s new Brookfield Place taproom. Innovative entertainment and fitness venues ranging from Court 16 at 28 Liberty St., to the Seaport’s Lawn Club, opened as well, catering to area workers and residents.

Record Rents Buoy Residential Market 1,363 new residential units became available in Lower Manhattan in 2023 as rents reached record highs. Over 5,000 units are under development or planned over the next few years, and several prominent projects, including the residential conversion of 25 Water St., made substantial progress this year. While the residential sales market cooled somewhat in response to persistently high interest rates, continued investment in new residential development clearly indicates that the neighborhood remains a premier residential location.

Entertainment Options Expand with the Completion of Performing Arts Center In September of last year, the 129,000 sq. ft, $500 million Ronald O. Perelman Performing Arts Center opened at the World Trade Center. The architecturally stunning cube became an instant Lower Manhattan landmark, and launched an ambitious inaugural programming season featuring a range of performing arts. PAC NYC joins a growing lineup of arts and entertainment options in Lower Manhattan. More recently, Mercer Labs, Museum Lower Manhattan Real Estate Year in Review | 2023

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COMMERCIAL LEASING Year End Leasing Totals Decline Across Manhattan Markets

After two years of slow but steady growth, leasing across the entire Manhattan office market suffered a broad slowdown in 2023. Lower Manhattan office leasing totaled 2,839,066 sq. ft. over the course of the year, a decline of 9.1% compared to 2022 and 22% below the five-year average. This reverses a two year trend of postpandemic leasing growth in the area. While market activity declined year-over-year, leasing totals for 2023 were still 20% higher than in 2020 during the grimmest days of the pandemic.

Lower Manhattan Annual New Leasing Activity, 2017-2023 Source: CBRE

Lower Manhattan’s leasing woes were mirrored across the Manhattan office market, as activity in the borough’s other submarkets also declined significantly. Midtown closed out the year with 17.7% less activity than in 2022, while Midtown South suffered an even more precipitous 25.9% year-over-year decline. Manhattan overall saw an 18.4% year-over-year decline and an 11% fall off compared to the five-year average. Ongoing macroeconomic uncertainty, persistent inflation, geopolitical unrest and high interest rates all likely contributed to the year’s anemic leasing. Fourth quarter leasing in Lower Manhattan totalled 589,000 sq. ft., a 5% drop from Q3 and a 25% decrease compared with Q4 2022, making it the fourth lowest quarterly total since 2016. Q4 leasing was 39% below the five-year quarterly average, too. Leasing has been sluggish throughout the year despite a single large government lease driving second quarter leasing totals to a level not seen since before Covid. Moreover, new spaces have been added to the market, leading to a net negative absorption of 207,000 sq. ft. in Q4 and a full year negative absorption of 516,000 sq. ft.. As opposed to Lower Manhattan’s previous quarters, no single lease made up the overwhelming majority of new leasing activity. The largest lease came from Duolingo, a language-teaching technology company, which subleased 85,666 sq. ft. from Spotify at 4 World Trade Center (WTC) after the music subscription service downsized its workforce. Rippling, an IT, HR and finance workflows platform, relocated from Midtown and signed a 68,680 sq. ft. lease at 4 WTC. And Jane Street, a quantitative trading firm, signed a 56,860 sq. ft. lease at 250 Vesey Street, Lower Manhattan Real Estate Year in Review | 2023

the second highest lease of the quarter. Midtown and Midtown South’s Q4 performance substantially outpaced Lower Manhattan, a 49% increase quarter-overquarter for Midtown and an 88% improvement for Midtown South. Paul, Weiss, Rifkind, Wharton & Garrison, a corporate law firm, bolstered much of Midtown leasing by signing a 765,931 sq. ft. lease, which is 18% of Midtown’s total Q4 leasing — making it the largest Manhattan office deal of the year (by square footage). On a positive note, office occupancy appears to have increased over the course of 2023 as health fears receded and employers became more aggressive about enforcing return to work policies. According to an analysis of Placer. ai data conducted by the Downtown Alliance, average mid-

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Lower Manhattan Top Leases, 2023 Source: Downtown Alliance, CBRE, JLL, Colliers International, CoStar

week occupancy across a range of office classes and locations peaked in Q4 at nearly 72% of 2019 occupancy, a 13.8% increase over Q4 2022.

Renewal Activity Bounces Back in 2023 More tenants chose to recommit to their Lower Manhattan office locations in 2023, likely reflecting a tenant friendly market and a clearer return-to-work picture. Renewal activity totaled 1.61 million sq. ft. in 2023, a substantial increase over 2022’s 466,000 sq. ft. of activity. Renewal leasing in 2023 was 2.74% above the five-year average. Notable renewals for 2023 include Bank of Nova Scotia (131,048 sq. ft.) at 250 Vesey St., the City of New York (183,255 sq. ft.) at 255 Greenwich St., and law firm Cadwalader, Wickersham & Taft renewed (225,000 sq. ft.) at 200 Liberty St. While renewal volume in the Q4 increased to 626,000 sq. ft., the vast majority of this activity is the result of one short term lease extension. The New York City Administration for Children’s Services extended a 530,653 sq. ft. lease at 150 William St. for one year, as the agency prepares to move into newly leased space at 110 William St. in 2025.

Legacy Industries Drive Activity in 2023

The finance, insurance and real estate (FIRE) sector and the government sector, both of which have long been mainstays of Lower Manhattan’s economy, generated the lion’s share of new leasing activity in 2023. Combined, these two sectors were responsible for nearly 57% of all leasing in the downtown market. Government leasing accounted for 37.4% of all new leased space in 2023, including Lower Manhattan’s largest deal of the year, the Administration for Children’s Services’s 640,744 sq. ft. deal at 110 William St. This single transaction is responsible for a third of all leasing for the year, and was also the third largest lease in Manhattan last year. The next largest share came from FIRE (19.2%). Tower Research Capital accounted for a large portion of that sectors’ leasing, signing a 121,904 sq. ft. deal at 120 Broadway. Education, non-profit and healthcare organizations made up 15.2% of industry leasing. Professional and business services had the next largest share (11.9%) — Cadwalader, Wickersham & Taft LLP renewed a 225,301 sq. ft. lease at 200 Liberty St. — followed by Technology, Advertising, Media and Information’s (TAMI) share. Duolingo, a language learning technology/software company, made up a significant portion of TAMI leasing at 4 WTC by signing an 85,666 sq. ft. lease.

Lower Manhattan Real Estate Year in Review | 2023

Tenant Name Location

Sq. Ft. Leased Transaction

NYC Administration for Children’s 640,744 Services Move Within LM

Sector

Government

110 William Street

NYC Administration 530,653 for Children’s Renewal Services

Government

150 William Street

Cadwalader, Wickersham & Taft 225,301 LLP Renewal

Professional Services, Law

200 Liberty Street

City of New York

255 Greenwich Street

183,255 Renewal

Government

131,048 Renewal

FIRE

Bank of Nova Scotia

Tower Research Capital LLC

121,904 Relocation

FIRE

120 Broadway

Municipal Credit Union of New York

93,500 Renewal

FIRE

115,000 Extension

TAMI, Technology

85,666 Sublease

TAMI, Technology

Legal Aid Society

72,091 Extension

Professional Services, Law

Rippling

68,680 New Lease

TAMI, Technology

Revlon, Inc.

68,518 Move Within LM

Retail Trade

8 9 10 11

250 Vesey Street

22 Cortlandt Street

Stripe

199 Water Street

Duolingo

4 World Trade Center

199 Water Street

4 World Trade Center

55 Water Street

Jane Street Group, 13 LLC

56,860 New Lease

FIRE

King’s College

52,542 Renewal

Education

MetTel, Inc.

50,079 New Lease

TAMI, Technology

250 Vesey Street

52 Broadway

55 Water Street

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Apparel and retail trade made up a meager 3.1%, with only one company, Revlon, cracking the top 25 largest leases; it acquired 68,518 sq. ft. of space at 55 Water St..

Relocation Activity Increases Substantially After Three Years of Decline

In the years leading up to the Covid-19 pandemic, relocations to Lower Manhattan accounted for a substantial part of the district’s leasing activity. Since the onset of the pandemic, office relocations to Lower Manhattan have declined, reaching a nadir in 2022 with only 146,808 sq. ft. leased. Relocation activity rebounded substantially in 2023, reaching 417,451 sq. ft. of leasing, a 185.77% increase from the previous year and 14.7% of the year’s overall leasing. The average lease size also rose from 8,593 sq. ft. to 29,818 sq. ft., a 247% increase. Furthermore, the 2023 relocation market saw larger areas of office space taken up. In 2022, no relocation exceeded 17,258 sq. ft., while in 2023, six leases exceeded 30,000 sq. ft.. Prominent relocations to the district last year included: • Tower Research Capital: A technology trading platform, Tower Research Capital relocated from Midtown South and signed a 121,903 sq. ft. lease at 120 Broadway.

• Rippling: An IT, HR and finance workflows platform, Rippling relocated from Midtown and signed a 68,680 sq. ft. lease at 4 WTC.

Source: Downtown Alliance, CBRE, JLL, Colliers International, CoStar

Tenant Name Location

SF Leased Transaction

Sector

Tower Research Capital

121,903 Relocation

FIRE

Rippling

68,680 Relocation

TAMI, Technology

Stub Hub

44,032 Relocation

TAMI, Technology

Payoneer

41,878 Relocation

FIRE

Morgan & Morgan 199 Water Street

34,792 Relocation

Professional Services, Law

MakerBot Indsutries

30,467 Relocation

TAMI, Technology

Gallegos United

14,000 Relocation

TAMI, Advertising

The Levin Group

One World Trade Center

13,000 Relocation

TAMI, Technology

Curtis + Ginsberg Architects

12,602 Relocation

Professional Services, Architecture

Power Flex

11,163 Relocation

TAMI, Technology

Noble Capital 40 Wall Street

9,767 Relocation

FIRE

Worldwide Tech 12 Services

5,467 Relocation

TAMI, Technology

5,000 Relocation

TAMI, Advertising

4,700 Relocation

FIRE

3 4 5 6

• MakerBot Industries: A desktop 3D print manufacturer, MakerBot relocated from Brooklyn and signed a 30,467 sq. ft. lease at 100 Pearl Street.

The overall vacancy rate in Lower Manhattan moderated slightly in the second half of 2023 after climbing to record levels earlier in the year. Lower Manhattan’s overall vacancy rate ended the year at 23.7%, a 0.5% decline from the second quarter when the district’s vacancy rate reached a record high of 24.2%. Overall vacancy in Lower Manhattan was the highest among all three Manhattan markets for the first three quarters of 2023, but concluded the year tied with Midtown South. Despite these modest improvements, the Q4 overall vacancy rate was still up 1% year-over-year and

Lower Manhattan Real Estate Year in Review | 2023

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Lower Manhattan Top Relocations, 2023

• StubHub: An online resale platform, StubHub relocated from Midtown and signed a 44,032 sq. ft. lease at 3 WTC.

Vacancy Rates Reach Record Highs Across Manhattan

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120 Broadway

4 World Trade Center

3 World Trade Center

195 Broadway

100 Pearl Streat

75 Broad Street

1 Battery Plaza

75 Broad Street

250 Broadway

13 14

GHD Partners 75 Broad Street

Kain Capital LLC

One World Trade Center

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remains historically high. Vacancy rates for class A office space have fared better than overall vacancy, reflecting the ongoing “flight to quality” that has defined market dynamics since 2020. The Class A market ended 2023 with a vacancy rate of 22.4%, down 0.6% since the last quarter and 0.3% year-over-year.

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Overall Vacancy Rates By Submarket Source: Cushman & Wakefield

23.7% 22.3%

In contrast to Class A space, Class B vacancy rates reached record highs in Q4, increasing to 27.8%, a 3.4 percentage point increase over the course of 2023. Class B vacancy is up 0.5% since Q3 and 3.3% since last year. Vacancy rates in Class B buildings now exceed Class A buildings for the first time since the pandemic began. Among all the building classes, Class C vacancy has remained the lowest since 2022, and in Q4 did not change from Q3’s 20.5% rate. It should be noted that Class C properties represent a small share of the overall office stock in Lower Manhattan. Vacancy rates across the Midtown and Midtown South submarkets increased in Q4 despite strong leasing activity in both markets. Midtown South’s overall vacancy rate increased 1.3% since last quarter and is now the same as Lower Manhattan. Likewise, after a year of gradual declines, Midtown’s overall vacancy grew to a record high of 22.3% in Q4. The three submarkets’ Class A vacancies mirror their overall vacancy trends. Midtown South closed out the year with a Class A vacancy rate of 24.6%, the highest among the Manhattan submarkets in this asset class. Midtown Class A vacancy rate worsened to 21.6%, and is now approaching Lower Manhattan’s Class A vacancy rate.

Overall Asking Rents By Submarket Source: Cushman & Wakefield

$78.23 $78.17

Lower Manhattan Rents Lag Behind Midtown and Midtown South

Lower Manhattan asking rents slumped in 2023 while Midtown and Midtown South asking rents improved, a continuation of the five-year price bifurcation between Lower Manhattan and other Manhattan office markets. Class A asking rents also continued to inch down in Lower Manhattan, while Midtown and Midtown South rose.

$55.74

Lower Manhattan’s average overall asking rents in 2023 continued the slow decline that began with the onset of the pandemic in 2020. As of Q4, the average asking rent for Lower Manhattan is $55.74, the lowest it has been since 2014. Class A asking rents declined modestly over the course of the year, ending at $59.71. Class B rents also declined to $50.73, their lowest rate since 2016. Lower Manhattan’s lagging asking rents likely reflect the market’s

Lower Manhattan Real Estate Year in Review | 2023

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ongoing weakness as well as the substantial amount of heavily discounted Class A sublet space available in the district In Midtown, overall asking rents grew to $78.23 and Class A asking rents rose to $85.44. Further, Midtown led all the office submarkets with 3% yearover-year and 2.3% quarter-over-quarter growth. Asking rents in Midtown South have also seen an increase, ending the year with a $78.17 overall rent and a $92.78 Class A rent.

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Notably, occupancy rates also improved, sometimes substantially, at older properties further from transit in other parts of the district. 55 Water St. enjoyed a nearly 12% increase in occupancy over the course of the year, while occupancy at 17 State St. has increased 5.3% over the year. Some properties continued to lag, however, with a cluster of buildings in the Stock Exchange District seeing their occupancy levels hold steady over the year at around 40% of 2019 levels.

Return to Office Numbers Improve Over 2023 Over the last several years, many major employers have adopted a hybrid work schedule. Anecdotal reports have indicated that employers have become more aggressive over the last year in requiring inperson work. The most widely reported indicator of return-to-office efforts, Kastle Stystem’s weekly office occupancy barometer, continues to report that New York City office occupancy has hovered around 50% for the past year. However, Kastle System’s data does not include many large office properties in Lower Manhattan and also includes data from suburban office parks. Working with cell phone tracking data provided by Placer.ai, the Downtown Alliance has identified a group of Lower Manhattan office buildings that represent a range of office classes and geographies and that we believe give a more accurate and nuanced picture of office occupancy. According to our analysis of Placer.ai data, Wednesday office occupancy in Lower Manhattan has improved steadily over the course of 2023, reaching an average across the district of 71.5% of pre-Covid (2019) occupancy in the fourth quarter. This represents a 30% increase compared to 2022. Moreover, office occupancy has increased at a diverse set of properties and geographies in the district. Amenity rich class A properties continued to demonstrate their attractiveness to office workers. Brookfield Place finished the year with the highest midweek occupancy in the district, with an occupancy rate just over 80% of 2019. Likewise, the World Trade Center campus experienced a 9.7% increase in occupancy over the year, finishing with an occupancy rate in Q4 of 73.7%. Lower Manhattan Real Estate Year in Review | 2023

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Lower Manhattan’s 30 Largest Private Sector Tenants in 2023

Source: Downtown Alliance, CBRE, CoStar

Government Leasing Anchors Lower Manhattan Economy City, state and federal offices, long an anchor of Lower Manhattan’s economy, have provided a powerful countercyclical support for both property owners and small businesses in the wake of the pandemic. While Lower Manhattan’s economy has benefited from a remarkable degree of tenant diversification, the public sector has remained a steady presence downtown, consistently occupying around 15% of Lower Manhattan’s office space since 2008. As the downtown office market faces one of the most serious challenges in its long history, this steady and reliable tenant base has provided a critical element of much needed stability. New York City government leasing alone accounted for over 37% of market activity downtown in 2023. Since the beginning of the pandemic in 2020, city, state and federal agencies have been responsible for 3,530,778 sq. ft. of leasing, which accounts for 24% of overall leasing during this period (the largest share of any industry). And government tenants have leased large blocks of space as well, accounting for 28% of deals over 100,000 sq. ft. signed since 2020. The government sector’s large presence in Lower Manhattan also supports other sectors of the office economy, with many not-for-profit tenants and other businesses choosing to locate in the district because of proximity to government clients and funders. Not-forprofit organizations accounted for nearly 11% of leasing in 2023, taking over 434,000 sq. ft. of space downtown. Lower Manhattan’s government offices are also home to a public sector workforce of approximately 48,000 workers. As public agencies have generally been more aggressive in calling workers back to the office than the private sector, these employees have been a vital source of support for small businesses in the district.

Lower Manhattan Real Estate Year in Review | 2023

Tenant Name

SF Occupied

Sector

Goldman Sachs

2,100,000

FIRE

Morgan Stanley

1,253,589

FIRE

The Bank of New York

1,145,000

FIRE

American Express

1,044,501

FIRE

WeWork

772,083

Professional Svcs., Other

Conde Nast

726,900

FIRE

WPP Group PLC

702,843

TAMI, Media

Sullivan & Cromwell

676,212

Professional Svc., Law

Spotify

481,839

TAMI, Technology

Cleary Gottlieb

445,914

Professional Svc., Law

Jane Street Capital

417,898

FIRE

Royal Bank of Canada

405,947

FIRE

Fried Frank

380,439

Professional Svcs., Law

HealthFirst, Inc.

375,800

FIRE

United Federation of Teachers

367,216

Nonprofit

Cadwalader, Wickersham & Taft

340,807

Professional Svcs., Law

J. Crew Group, Inc.

333,974

Retail Trade

Uber Technologies, Inc.

307,970

TAMI, Technology

Jones Day

286,185

Professional Svcs., Law

Legal Aid Society

271,991

Professional Svcs., Law

Justworks

270,400

Professional Svcs., Other

Oppenheimer

267,651

FIRE

AON

225,000

FIRE

Pace University

219,662

Education

Cahill Gordon & Reindel

212,845

Professional Svcs., Law

Hudson River Trading

211,128

FIRE

Droga5

202,375

TAMI, Advertising

MDC Partners Inc.

199,277

TAMI, Advertising

Hudson's Bay Company

193,397

Retail Trade

Brown Brothers Harriman

188,059

FIRE

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Largest Available Blocks of Office Space

Lower Manhattan’s largest blocks of available space are concentrated on the east side of the neighborhood, primarily along Water Street. Eleven properties in the Financial East submarket alone combine for a total of 3.6 million available sq. ft.. The insurance district (largely north of Fulton Street and east of Broadway) is also burdened with several large vacancies. A whopping 1.9 million sq. ft. of space is available at four properties in this area, and three of the five largest blocks of available office space come from addresses in the insurance district. The World Trade Center submarket has 1.4 million sq. ft. of available office space, with the largest at One Liberty Plaza, spanning six floors.

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• 120 Broadway has two large blocks available totaling 330,000 sq. ft of available space • 140 Broadway has 237,000 sq. ft. available across eleven floors. • 225 Liberty Street has 221,000 sq. ft. available in the bottom half of the building. • 200 Vesey Street has 221,000 sq. ft. across four floors. • 55 water Street has 220,000 sq. ft. of available space

across two blocks; one being a single floor and the other being five. 55 Water Street has 220,000 sq. ft. of available space across two blocks; one being a single floor and the other being five.

According to Cushman & Wakefield, two properties are entirely vacant: • 60 Wall Street has 1.6 million sq. ft. available as longtime anchor tenant Deutsche Bank completed a long planned move to Columbus Circle in summer 2021. The building is undergoing a full $250 million renovation, which includes a reimagined lobby and public space, and is still undergoing construction.

• 175 Water Street has 676,000 sq. ft. available following AIG’s relocation to 28 Liberty St. and other offices in Midtown and Jersey City in early 2022. The building was sold to 99c LLC, a boutique UK-based real estate investment firm from Vanbarton Group, for a reported $252 million. 99c has announced a comprehensive repositioning plan for the building into a commercial office space geared towards fashion, arts, culture and technology tenants. To make the building more attractive to office workers, the building, along with another one in Midtown, were recently awarded $100 million in tax breaks under the Manhattan Commercial Revitalization program, also known as M-CORE. The program aims to incentivize building owners to convert older, Class B properties into amenity rich class A spaces. Not including full-building vacancies, properties with large blocks available for immediate occupancy include:

60 Wall Street Renovation Rendering

• 80 Pine Street has two large blocks available totaling 637,631 sq. ft. across two blocks of space; one being nine floors and the other being three. • 222 Broadway has 470,000 sq. ft. across eleven floors. • One New York Plaza has 383,000 sq. ft. of space across three floors.

Lower Manhattan Real Estate Year in Review | 2023

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2023 Property Sales Development Site Sales 45 Broad Street: Madison Equities revealed it sold its interest in the development site at 45 Broad Street to development firm Gemdale for an undisclosed amount. Madison Equities purchased the site for $86 million in 2015 with plans to build a 226-unit condominium building, but foundation work stalled at the onset of the pandemic. Gemdale’s updated plans for the site call for a 60-story, 150 unit condominium development. Residential Building Sales 119 South Street: Investor Adam Ibrahim purchased the 14,053 sq. ft., 5-story building at 119 South St. in the Seaport from seller Emilio Barletta for $11.4 million. 119 South St. contains 16 residential units and a commercial space occupied by the Paris Cafe. 8 Spruce Street: Blackstone closed on the purchase of the 76-story, 899-unit apartment building for $930 million from sellers Brookfield Asset Management and Nuveen. The sellers initially listed the property in November 2021, seeking over $850 million.

8 Spruce Street

23 Peck Slip: REDA Holdings purchased the 36,000 sq. ft., 20-unit rental building at 23 Peck Slip for $24.5 million from seller Churchill Real Estate Holdings. The building was last purchased in 2014 for $23 million. 23 Peck Slip also contains a vacant retail space that was previously occupied by ACQUA restaurant, which closed in 2020. 14 Maiden Lane: Frank Savino purchased the 14,645 sq. ft. 10-unit rental building at 14 Maiden Ln. from seller Michele Kahn for $9.5 million. 19 Dutch Street: At the end of September, Pontegadea Group, a real estate firm owned by ZARA founder Amancio Ortega, closed on the purchase of the 64-story, 483-unit apartment building for a reported $487.5 million from Carmel Partners. The building, which opened in 2019, traded for roughly $1 million per unit. Office Condo Sales 1 Hanover Square: SomeraRoad purchased the 25,000 sq. ft. landmarked commercial condo at 1 Hanover Square for $6 million. The seller was India House, a

2021 Lower Manhattan Real Estate Year in Review | 2023

19 Dutch Street

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social club and event space, that owned the building since the 1920s. The developer completed a $19 million renovation and conversion of the landmarked commercial condo into 20,000 sq. ft. of boutique office space. The renovation includes 5,000 sq. ft. of high-end amenity and conference space. Harry’s continues to own and operate its restaurant out of the basement space. Hotel Sales 75 Wall Street: The Hakimian Organization sold the 253room Andaz Wall Street hotel at 75 Wall St. to Blue Sky Hospitality for approximately $85 million. The hotel portion of the building occupies the lower floors, while the upper floors contain 346 condominium units. Hakimian still owns the residential upper floors. The hotel portion was rebranded as the Hyatt Centric. 33 Peck Slip: In January, Sono Hospitality, a South Koreabased hospitality group, closed on the purchase of the 66-room Mr. C Seaport Hotel at 33 Peck Slip from the Ghassemieh family, which currently owns and operates the hotel in partnership with Cipriani. Sono purchased the hotel for $60 million, or just over $900,000 per room. The hotel will no longer operate under the Mr. C brand.

75 Wall Street

133 Greenwich Street: German hotel brand Motel One opened its first US location with the 326-room Cloud One Hotel New York-Downtown at 133 Greenwich St., rebranding from the former Courtyard WTC. Mixed Use Building Sales 12-113 South Street: The Fogliano family sold a portfolio of two loft-style commercial buildings spanning 10,400 sq. ft. at 112-113 South St. to a private investor for $4 million. The buildings, which have been vacant since 2005, were listed in Feb. 2021 for $6 million. 25-27 Peck Slip: REDA Holdings also purchased the 10,635 sq. ft., six-unit building at 25-27 Peck Slip for $8.65 million from seller Peck BZ. The building contains four residential units and two retail spaces. 80-88 West Broadway: 6R Group purchased a fivebuilding portfolio located at 80-88 West Broadway (aka 70-74 Warren St.) for $36.1 million from seller Mark Jaffe. The portfolio contains six retail spaces, 17 rental

Lower Manhattan Real Estate Year in Review | 2023

33 Peck Slip

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apartments and a parking lot. Retailers currently open in these spaces include Homemade by Miriam, JR Sushi, AKS Eyecare, The German School of Manhattan and a Western Union. 105 Washington Street: The Center for Urban Community Services, a homeless-services provider, purchased the vacant 23,030 sq. ft. building from seller 105 Washington Development for approximately $12.9 million. The Center for Urban Community Services plans to convert the building into a “safe haven” shelter for up to 84 clients, offering primary care, nursing, psychiatric services, security and consultation with social workers. 53-55 Stone Street: Investor Alicia Harper purchased the buildings at 53-55 Stone St. from Davean Holdings for $15.1 million. The properties contain seven rental apartments and a commercial space occupied by Underdog bar. Davean Holdings originally purchased the buildings for $10.1 million in October 2021.

125 Maiden Lane

107 South Street: Plans have been approved to convert the five-story former warehouse at 107 South St. to a mixed-use residential and commercial building containing ground level retail space and TBD number of units. Plans call for a full facade restoration and the addition of an extra story and rooftop mezzanine. Recent Pending Sales Announcements In January the Historic Front Street portfolio of buildings (213-217 Front St, 214 Front St. and 236 Front St./24 Peck Slip) was listed for sale by owners the Durst Organization and Zuberry Associates for $87 million. The portfolio contains 95 rental apartments and 15 retail units across more than 143,177 sq. ft.. 241 Water Street: The 32,000 sq. ft. building that housed the Blue School was listed for sale for $28 million. The Blue School, a private school operated by the founders of the Blue Man Group, has occupied the space since 2011. The Blue School is set to close at the end of the academic year. 125 Maiden Lane: The United Nations International Children’s Emergency Fund (UNICEF) listed its 70,000 sq. ft., three-floor office condo for sale at 125 Maiden Ln. UNICEF is seeking to reduce its footprint as hybrid

Lower Manhattan Real Estate Year in Review | 2023

241 Water Street

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work has pushed the organization to reconsider its space needs. An asking price has not yet been disclosed. UNICEF originally purchased the condo in 2007 for $29.9 million.

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of Februrary 2023, 99 Washington Street has been housing migrants in response to the city wide migrant crisis.

65 West Broadway: The construction site at 65 West Broadway was listed for sale by Cape Advisors. Plans for the site call for a 10-story, 68,000 sq. ft. residential building containing 23 condo units and ground floor retail space. Construction on the site began in 2017, but has been stalled since 2019. An asking price for the site has not yet been disclosed. 2 West Street: A judge ordered an auction for the 298room Wagner Hotel at 2 West St. with a reported opening bid of $60 million. Urban Commons, which owns the hotel, filed for Chapter 11 bankruptcy in November 2022 after reportedly defaulting on a $96 million loan. Urban Commons originally purchased the hotel for $151 million in 2018 from Millennium Partners and Westbrook Partners. 144 Fulton Street: Crown Acquisitions has listed the 5-story, 8,625 sq. ft. retail property at 144 Fulton St. for $44 million. The firm originally acquired the property for $25 million in 2015. The building is fully occupied by ChickFil-A, whose lease lasts until January 2038. Defaults and Bankruptcies 61 Broadway: RXR Realty entered into default on 61 Broadway after it reportedly stopped making payments on its $240 million loan on the property in December 2022. RXR agreed to return the 787,000 sq. ft. building to lender Aareal Bank in a deed-in-lieu-of-foreclosure transfer. Aareal Bank is seeking to sell the outstanding debt on the building for a to-be-determined amount.

Wagner Hotel at 2 West Street

74 Broad Street: Caspi Development reportedly defaulted on over $17 million in loans and interest from lender Pacific Western Bank at 74 Broad St.. The 21,216 sq. ft. boutique office building now faces potential foreclosure. Caspi Development purchased the property for $14.3 million in 2014. 99 Washington Street: Developer Jubao Xie filed for Chapter 11 bankruptcy for the 492-room Holiday Inn Manhattan-Financial District at 99 Washington St.. The developer is seeking to avoid foreclosure at the hotel amid a reported $26 million in outstanding debt and interest. As Lower LowerManhattan ManhattanReal RealEstate EstateYear YearininReview Review| 2021 | 2023

OFFICE OFFICE RETAIL

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RETAIL Retail Openings Stabilize in 2023

81 retail stores opened while 42 closed over the course of 2023, compared to 150 openings and 160 closures in 2022. Bars and restaurants made up 70% of retail openings this year. Another 25% of retail openings came from shopping options, with the remaining 5% being personal/business services. Some notable venues opened this year:

• Sixpoint Brewery, a 7,500 sq. ft. taproom run by the well known Brooklyn-based brewery serving beer, cocktails, wine and small plates, opened at 200 Liberty St. in Brookfield Place. • Delmonico’s Steakhouse, which had been closed since the pandemic, reopened at 56 Beaver St. with a new chef and revamped menu. • Metropolis, a new fine dining restaurant helmed by

noted chef Marcus Samuelsson, opened at PAC NYC.

• Club Laissez-Faire, a 180-person venue envisioned as a contemporary iteration of the classic hotel nightclub, opened under the Beekman Hotel at 10 Theater Alley. • Court 16, a racquet sports space which offers classes and camps for all ages and play levels, just opened at 28 Liberty St.. • Open Squash, an indoor squash facility, opened at 100

Pearl St..

Other retail bussines that opened in 2023 include: • Health club chain Fitness International signed a 36,650 sq. ft. lease at 59 Maiden Ln. One of the largest retail leases of the year, the gym will provide amenities and boutique fitness classes.

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Innovative Nightlife Options Diversify and Enhance the Lower Manhattan After-Work and Weekend Scene As return to work and ridership data suggest that retail conditions are improving, retailers are seizing the opportunity to serve workers and visitors coming back to Lower Manhattan. Among the most anticipated new retail openings in 2023 were the Lawn Club at the South Street Seaport and Sixpoint Brewery’s first Manhattan outpost at Brookfield Place. These two new venues expand the universe of businesses catering to Lower Manhattan’s young workers and residents and demonstrate the continued vitality of the district’s diverse food and beverage scene. Brooklyn’s ever popular Sixpoint Brewery opened a 7,500 sq. ft. space at Brookfield Place in December that features a taproom along with a full selection of cocktails, wine and food. The beer retailer plans to unveil a 3,000 sq ft. outdoor beer garden in the spring, which will surely attract a number of office happy hours as workers continue to return to Brookfield Place. The Lawn Club, which also opened on Fulton Street in Q4, offers a unique combination of lawn games and a full service bar. The 25,000 sq. ft. venue replaces 10 Corso Como and encourages patrons to let their hair down and get competitive by playing a variety of popular lawn games such as ladderball, cornhole, shuffleboard and croquet. The Lawn Club offers a full menu as well as a creative cocktail program.

• Pretty Well Beauty and Maure, both high-end home

goods stores at Westfield WTC and 7 WTC.

• The Lawn Club opened at the South Street Seaport and features a bar and a turf floor to play classic lawn games.

LowerManhattan ManhattanReal RealEstate EstateYear Yearin inReview Review ||2023 2021 Lower

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Sixpoint Brewery at Brookfield Place

Retail Coming Soon • Fogo de Chao, known for roasting cuts of meat over an open flame, is opening its fourth New York location in Lower Manhattan at the Oculus at Westfield World Trade Center shopping complex.

• Brooklyn Bread Company, a bakery based in Brooklyn, is expanding its operations to 111 Murray St.. • Printemps, a luxury French department store, is set to open at One Wall St. later in 2024. • Rocket Club, a math tutoring and entrepreneurship

program at 23 Warren St.

• SPiN, a ping pong gaming center, announced plans to open later this year in the 5,600 sq. ft. former Bobby Van’s space at 25 Broad St.. • Stretch Lab at 157 Chambers St. — a one-on-one stretching and physical therapy fitness center. • Mikado Sushi is replacing Poke Green at 164 Pearl St. between Wall and Pine streets. • Sukukino — new ramen and sake venue located at 34

Water St..

Printemps: Coming Soon to One Wall Street Lower Manhattan Real Estate Year in Review | 2023

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The Lawn Club at the South Street Seaport SAGA at 70 Pine Street

Retail Rents on the Rise

According to the Real Estate Board of New York, Broadway retail rents slowly climbed upward throughout 2023, hitting an average asking price of $319 per sq. ft., a 7% increase from Spring 2023 and a 12.7% jump compared to last year. This is part of a larger return-to-norm trend, as average asking prices soared to record highs from Spring 2019 to Fall 2021. Over 2022, prices had dipped below the pre-pandemic average. But prices showed signs of recovery in 2023, as it has become easier to lease businesses that cater to weekday office workers returning to work at a higher rate than the previous year.

Delmonico’s at 56 Beaver Street

Lower Manhattan Real Estate Year in Review | 2023

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Retailers Opened In Lower Manhattan In 2023

Retailers Closed In Lower Manhattan In 2023

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Pedestrian Traffic Increases Significantly Pedestrian counts in Lower Manhattan increased over the course of 2023 as more and more visitors returned to the neighborhood. According to data collected from a series of automated pedestrian counters located across Lower Manhattan, pedestrian traffic in Lower Manhattan increased 7.85% over 2022. Pedestrian traffic in January spiked a remarkable 55% over the same month in 2022, reflecting a dramatically different post-holiday environment from the previous year, when renewed health fears kept many employees away from the office. 40 Water St. saw a significant influx of foot traffic, up 19.53% from last year. Moreover, the New York Stock Exchange and 195 Broadway, which historically record the highest foot traffic totals, shot up 15.9% and 15.6%, respectively. Broad and Beaver was the only location to experience a decline in foot traffic, while the remaining seven all saw increases from 2022. Transit ridership has increased as well over the course of the year. Ferry ridership, which combines private ferries, the Staten Island Ferry and the Governors Island Ferry, shot up 23.7% — from 12.3 million in 2022 to 15.3 million in 2023. Subway ridership totals are also continuously improving for Lower Manhattan; ridership increased 20% from 2022 and an impressive 81% from 2021

Metropolis by Marcus Samuelsonn at PAC NYC

Lower Manhattan Real Estate Year in Review | 2023

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Tourism Begins to Rebound

According to a study conducted by Audience Research & Analysis for the Downtown Alliance, Lower Manhattan welcomed 5.7 million tourists in 2021 as domestic travel began to resume and international travel restrictions eased. While still far below 2019’s 14 million visitors, 2021’s tourism number was nearly double the visitation seen in 2020. The share of international visitors steadily increased to 28% and rebounded further throughout 2022. Traditional western European markets and Canada have rebounded significantly in 2022 after travel restrictions were lifted in late 2021. Nearly 33 million visitors came to New York City in 2021, less than half the record total for 2019, but still up from 22.3 million in 2020. Looking forward, NYC & Company forecasts that international travel will triple its 2021 volume in 2023 and domestic travel will exceed pre-pandemic levels in 2023. While updated figures for 2023 are still being determined and are expected to be released in late February 2024, the data will likely reflect ongoing improvements from the lows of 2020.

but the open date is not yet determined. The developer is Hidrock Realty.

• The Tempo by Hilton at 140-142 Fulton St. does not have a determined open date. The developer is also Hidrock Realty. • Hotel Indigo is expected to open in 2025 at 8-12 Maiden Ln., and is currently under construction. The developer is W & L Construction Group. • Platt Street Hotel is expected to finish construction in 2025. It’s located at 7 Platt St.. The developer is the Moinian Group. • Ned Hotel is expecetd to open but the opening date is not yet determined. Yucaipa Companies is the developer. Hotel Occupancy in Lower Manhattan and New York City Source: CoStar/STR

Hotel Inventory Continues to Grow

The current hotel inventory in Lower Manhattan stands at 8,297 rooms across 42 hotels. Three new hotels opened in 2023 totaling 523 new hotel rooms:

• The FIDI Hotel opened at 11 Stone St.. The 131-room

hotel contains the MINT Bar and restaurant.

• Cloud One Hotel, owened by German brand Motel One Group at 133 Greenwich St., opened to tourists this year and has 326 rooms. It is rebranding from the former Courtyard WTC. • 33 Seaport Hotel opened at 33 Peck Slip with 66 rooms, rebranding from the former Mr. C Seaport hotel. One new hotel is expected to open in 2024:

• The Warren Street Hotel, a new boutique hotel operated by Firmdale Hotels, is expected to open in 2024 at 86 Warren St.. The developers are Solil Management and Firmdale. Construction has recently wrapped on this property. There are over 872 hotel rooms across five hotels under construction or in development in Lower Manhattan: • The AC Hotel is expected to open at 112 Liberty St. Lower Manhattan Real Estate Year in Review | 2023

Occupancy Rebounds from the Pandemic

Lower Manhattan’s hospitality sector continues to recover from the pandemic faster than anticipated. According to CoStar/STR data, hotel occupancy averaged 80% over the course of 2023, nearly equal to 2019’s 84% occupancy rate. After reaching a nadir of 39% in 2020, Lower Manhattan occupancy reached an 85% rate in the fourth quarter, the highest since 2019, before the pandemic.

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Lower Manhattan Hotel Pipeline Citywide occupancy was roughly on par with Lower Manhattan in the fourth quarter. Lower Manhattan room rates have increased as tourists flood the streets of New York and new high-end hotels open, such as the FIDI Hotel at 11 Stone St.. In Q4, Lower Manhattan’s average daily room rate (ADR) grew at a healthy rate. The submarket had an ADR of $345.45, the highest it has been since the Downtown Alliance started tracking this metric. The Q4 rate marks a 7% improvement over 2022, a 15% quarterly uptick and a 23% increase compared to 2019.

Source: Downtown Alliance

Hotel / Address 1

Hotel Average Daily Room Rate (ADR) in Lower Manhattan and New York City

Source: CoStar/STR

Rooms Open Date

The Warren Street Hotel

Solil Management & Firmdale

2024

Hotel Indigo

W&L Construction

TBD

2025

Platt Street Hotel

The Moinian Group

172

2025

The AC Hotel

112 Liberty Street

Hidrock Realty

230

TBD

The Ned Hotel at American Stock Exchange

Yucaipa Companies

174

TBD

Hidrock Realty

296

TBD

86 Warren Street

8 - 12 Maiden Lane

7 Platt Street

123 Greenwich Street

Owner/ Developer

Tempo by Hilton

140-142 Fulton Street

Total Hotels in the Pipeline

Total Hotel Rooms in the Pipeline

941

$345.5 ADR

Highest on Record

Lower Manhattan Real Estate Year in Review | 2023

The Cloud One Hotel at 133 Greenwich Street 20

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Inventory And Development

Lower Manhattan has 34,831 units in 346 residential buildings. There are 5,188 units in 16 buildings under construction or planned for development, with about 56% currently planned as rental units and 44% as condos. One building that has been in development just received its temporary certifiacte of occupancy last year: • 160 Water Street: Leasing has launched at New York City’s largest office-to-rental conversion to date. Developed by Vanbarton Group and designed by Gensler, Pearl House includes 588 luxury apartments and three levels of resortstyle amenities. Over the next several years, nine new developments containing over 3,000 new units are expected to finish construction, including:

• 1 Park Row: Construction has topped out on 1 Park Row, a 23-story mixed-use building in Lower Manhattan’s Financial District. The 305-foot-tall structure will yield 103,000 sq. ft. with 58 condominium units in one- to threebedroom layouts, along with 19,000 sq. ft. of office and retail space on the lower levels.

160 Water Street Rendering 160 Water Rooftop Rendering

• 7 Platt Street: Moinian Group is currently building

a new 250-unit tower that will also contain a hotel component. 7 Platt St. is expected to finish construction and open in 2025.

• 8 Carlisle Street: Excavation is continuing at 8 Carlisle St., the site of a 64-story residential skyscraper in the heart of Lower Manhattan. Designed by Handel Architects and developed by Carlisle New York Apartments and Grubb Properties, which closed on a $86 million loan for the project over the summer, the 712-foot-tall structure will yield 326,221 sq. ft. with 462 residential units, 7,000 sq. ft. of commercial space, and a 60-foot-long rear yard. • 55 Broad Street: MetroLoft and Silverstein Properties announced the acquisition of 55 Broad St. for $172.5 million from the Rudin Family, who will retain an equity stake in the project. The partnership plans to convert the 410,000 sq. ft. building into 571 market rate apartments and is beginning the construction phase of development. • 125 Greenwich Street: The Greenwich, a 912-foot-

tall residential skyscraper at 125 Greenwich St. in Lower Manhattan, is nearing completion. Designed by Rafael Viñoly Architects and developed by Fortress Investment Group, Bilgili and Bizzi and Partners, the 88-story structure will yield 273 condominium units designed by March and Lower Manhattan Real Estate Year in Review | 2023

1 Park Row Rendering

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Construction Pipeline 2023 White (MAWD). Homes will range from studios to threebedroom layouts with pricing starting at $1.15 million. It is located at the corner of Greenwich and Thames streets, just south of the World Trade Center complex and Liberty Park.

• 5 WTC: A planned apartment tower at the World Trade

Center site is poised for a potential $31 million government funding boost. In July, Gov. Kathy Hochul announced that the planned 900-foot residential skyscraper to be built by Silverstein Properties and Brookfield Properties at 5 WTC would have one-third of its apartments set aside as affordable housing.

• 250 Water Street: In late 2021, the Howard Hughes Corporation received approvals to begin construction on its $850 million development project. The site will transform a parking lot into a 324-foot-tall building with 270 apartments (including 70 affordable units), Class A office space, retail and community space. The project will generate $50 million in funding for the South Street Seaport Museum, with $40 million generated from the Howard Hughes project and another $10 million committed by the City. The project broke ground in 2022, beginning with comprehensive remediation of the site through the New York State Brownfield Cleanup Program. Remediation has since been certified through the New York State Brownfield Cleanup Program.

Address Condo + Rental Units Under Construction

Units

Total

2,681

1 Park Row

Condo New Construction

2023

125 Greenwich Street

Condo New Construction

273

2024

8 Carlisle Street

Rental New Construction

400

2025

7 Platt Street

Rental New Construction

250

2025

55 Broad Street

Rental Conversion

571

2026

161 Maiden Lane

Condo New Construction

TBD

45 Park Place

Condo New Construction

TBD

25 Water Street

Rental Conversion

1,300

TBD

250 Water Street

Condo/Rental New Construction

270

TBD

Total

2,681

Condo + Rental Units Under Construction

5,188

Units In 16 Residential Buildings Under Construction Or In Development Lower Manhattan Real Estate Year in Review | 2023

Open Date

• 161 Maiden Lane: The 60-story residential skyscraper

at 161 Maiden Lane has stalled with no construction progress for the past three years due to 2019 reports that the concrete superstructure had been leaning 3 inches to the North. As a result, the the future for the partially built tower remains dubious.

Lease / Building Type

7 Platt Street Rendering 22

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Planned for Development Pipeline 2023 Address Condo + Rental Units In Development

Lease / Building Type

Units

Total

1,936

Open Date

130 Liberty Street

Rental New Construction

1,325

2028

75-83 Nassau Street

Rental New Construction

229

TBD

69 West Broadway

Condo New Construction

TBD

45 Broad Street Condo

206

TBD

90 John Street

Rental Conversion

115

TBD

85 Broad Street

TBD Conversion

TBD

265 Broadway

Hotel/Condo New Construction

TBD

New Construction

Condo + Rental Units In Development

Total

1,936

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Residential Sales Volume Falls Amid Rising Interest Rates But Still Exceeds Pre-Pandemic Levels Inflation reached the highest levels in decades in 2022, prompting the Federal Reserve to raise interest rates. While inflation moderated over the course of 2023, interest rates have remained high, leading to a reduction in both sales price and volume. Lower Manhattan ended the year with a $1.17 million median sales price, 43.6% below last year’s median. 303 units were sold, down 13.4% from last year and 41.73% from 2021. Despite the challenging interest rate environment, sales volume for 2023 still outpaced 2019 by 11.4%. The Lower Manhattan residential sales price outperformed Manhattan’s by the end of the year, but only by 1.18%.

$4,612

.Median Rent In Lower Manhattan — Up 16% From PrePandemic Rates

Rental Rates Continue to Soar According to residential statistics published by Miller Samuel/Douglas Elliman, median rents in Lower Manhattan reached a record high of $4,768 in the third quarter before moderating somewhat at the end of the year. While rents slipped somewhat to $4,612 in the fourth quarter, they remain 15.6% higher than they were in late 2019. Would-be home buyers have been forced back into the rental market as interest rates have increased over the course of the year, which helps to explain the relatively low sales volume and prices. Manhattan’s median rent fell by 8.5% from the previous quarter to $4,025, declining for the first time since Q3 2022. The borough did, however, surpass year-end 2019 rents by 14.7%.

Lower Manhattan Real Estate Year in Review | 2023

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Lower Manhattan Median Residential Rent, Q1 2017 - Q4 2023 Source: Miller Samuel/Douglas Elliman

Lower Manhattan median rents set a record high in 2023 and are now 16% higher than they were in late 2019

Lower Manhattan Median Condo Sales Price, Q1 2017 - Q4 2023 Source: Miller Samuel/Douglas Elliman

Sales Volume of Lower Manhattan Condos/Co-Ops, Q1 2016 - Q4 2023

Source: Miller Samuel/Douglas Elliman

303 units were sold in 2023 — 13% fewer than in 2022.

Lower Manhattan Real Estate Year in Review | 2023

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MAJOR PROJECTS UPDATE World Trade Center

The Ronald O. Perelman Performing Arts Center (PAC NYC) The $500 million Perelman Arts Center opened on September 14, 2023. The approximately 129,000 sq. ft. cube-shaped building features three theaters of varying sizes which can be combined in different seating configurations and formats for an array of unique performance environments. Site 5 A partnership between Brookfield and Silverstein Properties received approval from the Port Authority and Lower Manhattan Development Corporation (LMDC) to develop Site 5 at the World Trade Center, also known as 130 Liberty St.. The site recently served as a Port Authority police depot and the southernmost area continues to function as a temporary public plaza. The proposed 1.56 million sq. ft. tower is expected to include approximately 1,300 rental apartments, of which at least 30% will be affordable. LMDC approved an override to city zoning rules in order to build a tower larger than local regulations allow. Construction may commence later in the year. 5 WTC will also include roughly 10,000 sq. ft. of nonprofit community space to be occupied by the Educational Alliance, over 190,000 sq. ft. of retail and office space, and a connection to Liberty Park. It was recently reported that the supertall apartment tower at Ground Zero is poised for a potential $31 million government funding boost — using money designated after 9/11 for Lower Manhattan job creation and waterfront improvements. In July, Gov. Kathy Hochul announced the planned 900-foot residential skyscraper to be built by Silverstein Properties and Brookfield Properties.

Pace University In December 2022, Pace announced plans to renovate One Pace Plaza, adding new academic spaces, a modernized residence hall and a new performing arts center. The renovation will include the reconstruction of the lower floors of One Pace Plaza East and upgrades to the dormitory building at 182 Broadway. Construction is expected to start in the fall and be completed in early 2026.

Lower Manhattan Real Estate Year in Review | 2023

The University recently announced the formation of the Sands College of Performing Arts commencing at the start of the 2023-24 academic year, as it has just finished construction. Sands will be housed within a new performing arts center at One Pace Plaza containing a 450-seat proscenium theater, a 200-seat flexible theater and a 99-seat black box theater. Sands will be funded by a $25 million donation from Rob and Pamela Sands, given as part of a fundraising campaign that includes private donations and $30 million from the state and federal governments. The new building serves as a replacement for Pace’s 50-year-old tower at One Pace Plaza East. 15 Beekman St. is the third property SL Green has built for Pace in the neighborhood. The developer previously built dorm buildings at 33 Beekman St. in 2015 and 180 Broadway in 2013. The building stands 338-feet tall and yields 213,084 sq. ft.. It is alternately addressed as 126-132 Nassau St..

Infrastructure

Broadway Bicycle Lane Fortified The New York City Department of Transportation is continuing to add concrete barriers to fortify half (20 miles) of the City’s dedicated bike lanes by the end of 2023. In one of the first projects, concrete barriers were installed along the Broadway bike lane, between Barclays and Morris streets. Street Reconstruction Reconstruction of Front Street between Old Slip and John Street began in January 2020 and is nearing completion. Greenwich Street reconstruction, between Barclay and Chambers streets, began in early 2022 and will be completed in November 2024; the adjacent sidewalks at 240 Greenwich St. will also be redone in tandem. Vesey Street reconstruction, between Church Street and Broadway, began in September 2022 and will be completed in September 2024. Nassau Street reconstruction, between Pine Street and Maiden Lane, began in the spring. These projects, each lasting two years, will replace all underground infrastructure, including water mains, sewers, electric, gas and other utilities, as well as construct new streets and curbs.

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Ronald O. Perelman Performing Arts Center

Water Street Streetscape Improvements The city began work on the streetscape and public-realm enhancement project along the Water Street corridor in May 2021, which is estimated to be completed in 2024. The $22.8 million project will transform two temporary public plazas at Coenties Slip and Whitehall Street into permanent public spaces featuring new landscaping, seating and concessions. The project will also plant street trees, rebuild sidewalks and enhance pedestrian safety from Whitehall Street to Old Slip.

Parks and Open Space

Wagner Park In July 2022 the Battery Park City Authority (BPCA) closed Wagner Park to begin work on the $221 million South Battery Park City Resiliency Project. Plans for the project call for the demolition and reconstruction of Wagner Park and the Wagner Park Pavillion, ultimately elevating the park by 10 feet and installing flood walls, berms and other resiliency infrastructure from the Museum of Jewish Heritage through Wagner Park and Pier A, moving along Battery Place over to Bowling Green Plaza. Construction resumed in May after the Battery Park City Authority successfully appealed an injunction issued by a state Supreme Court judge in December 2022. Construction is scheduled to be completed in 2025. The Waterfront Alliance announced that the South Battery Park City Resiliency Project has become the 13th project nationally to achieve WEDG® (Waterfront Edge Design

Lower Manhattan Real Estate Year in Review | 2023

Guidelines) verification, which is a national rating system and set of guidelines for resilient and accessible waterfront design. Brooklyn Bridge The Arches, a one-acre park under the Brooklyn Bridge, reopened in May. The park features basketball, pickleball and shuffleboard courts, as well as public seating. The Arches and the adjoining Brooklyn Banks skatepark have been closed to the public since 2010, when the NYC Department of Transportation began using the spaces as a storage area for construction equipment amid maintenance work on the bridge.

Climate Resiliency

Resilient Infrastructure Work continues on parts of the Financial District and Seaport Climate Resilience Master Plan, a resilient infrastructure plan released in 2021 to protect Lower Manhattan from future flooding. The master plan is part of the larger Lower Manhattan Coastal Resiliency strategy, with active capital projects in Battery Park City, The Battery and Two Bridges. The plan calls for the creation of a two-level waterfront park that extends the shoreline of the East River by up to 200 feet. The upper level will be elevated by 15 to 18 feet to protect against severe storms, while doubling as public open space. The lower level will be a waterfront esplanade raised three to five feet to protect against sea level rise, while offering access to the East River shoreline. The flood defense infrastructure

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is projected to cost $5 to $7 billion and could be in place by 2035, pending funding and prioritization by regulatory agencies. Governors Island New York City selected a consortium led by Stony Brook University to develop a $700 million, 400,000 sq. ft. climate research and development campus on Governors Island that will be called the New York Climate Exchange. The campus will include two new classroom and research buildings, student and faculty housing and university hotel rooms. The campus is expected to host 600 college students, 6,000 job trainees and 250 faculty members and researchers. In addition to Stony Brook University, the development consortium includes IBM, Georgia Institute of Technology, Pace University, Pratt Institute and Boston Consulting Group. Governors Island was rezoned in 2021 to allow for the campus. Construction is expected to begin in 2025 and wrap up in 2028. The Trust for Governors Island announced that expanded ferry service running every 15 minutes will begin in the summer of 2024.

Lower Manhattan Real Estate Year in Review | 2023

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Downtown Alliance Partners With Ad Agency Wunderman Thompson to Attract New Office Tenants The Alliance for Downtown New York launched the “Only Downtown” campaign to remind New Yorkers and visitors of its unique and surprising breadth of experiences and attractions and at the same time renew interest in Lower Manhattan for commercial real estate decision makers. The agency Wunderman Thompson juxtaposed contrasting images and headlines from iconic landmarks to the area’s newest hotspots. Over the last several months the campaign has been seen above subway entrances, on Metro North, in Grand Central, on Lower Manhattan’s Big Belly trash cans as well as in local media and in a targeted social media campaign on LinkedIn.

Lower Manhattan Real Estate Year in Review | 2023

Alliance for Downtown New York 120 Broadway, Suite 3340 New York, New York 10271 The mission of the Alliance for Downtown New York is to provide service, advocacy, research and information to advance Lower Manhattan as a global model of a 21st century central business district for businesses, residents and visitors.

downtownny.com/research-statistics Lower Manhattan Real Estate Year in Review | 2021