COMMERCIAL LEASING

Leasing Activity Improves but Remains Sluggish

In 2022, Lower Manhattan’s office market continued to recover from the long shadow of the Covid-19 crisis. Lower Manhattan leasing activity totaled 3.13 million sq. ft. — 12% higher than in 2021 and 38% above the record low set in 2020. While yearly leasing totals have improved markedly since 2020, they remain 29% below the five-year annual average. Downtown saw uneven quarterly leasing in 2022. The first quarter recorded the second highest quarterly total since the onset of the pandemic, but stalled in the spring before picking back up in the fall. Fourth quarter leasing activity declined by 8% from the third quarter and came in 25% below the five-year quarterly average as macroeconomic uncertainty continues.

After a year of slow but steady recovery in 2021, last year started with a new round of disruption and delayed return to office plans due to the spread of the Omicron variant. The office market and broader economy have remained unsettled amid high inflation, rising interest rates and fears of a potential recession. A post-pandemic “new normal” characterized by hybrid work schedules and leasing concentrated in new, amenity rich buildings was evident throughout 2022.

Office occupancy remains persistently lower than it was pre-pandemic, with the entire New York metro area reaching an annual peak of 49.6% at the end of November, according to data from Kastle Systems. Office occupancy is substantially higher midweek (TuesdayThursday), reflecting the widespread adoption of more flexible work schedules. Research conducted by the Downtown Alliance in the fall of 2022 indicates that some properties (particularly newer buildings located close to transit) have seen higher midweek occupancy. Indeed, in the week following Labor Day, One World Trade Center recorded 68% occupancy, and occupancy across the Brookfield Place campus was more than double the level seen in 2021.

Leasing declined across all Manhattan office markets in the fourth quarter. The sharpest decreases occurred in Midtown and Midtown South, which recorded 44% and 38% lower quarterly activity, respectively, while Lower

Lower Manhattan Annual New Leasing Activity, 2017-2022

Source: CBRE

3.13

Million Sq. Ft. Of New Leasing Activity in 2022 — 38% Higher Than The Record Low Set in 2020

Manhattan leasing activity fell by only 8%. Leasing activity fell below the five-year quarterly average in all three Manhattan office markets, with Lower Manhattan recording a decline of 25%, while Midtown saw a decline of 32% and Midtown South saw a decline of 17%.

Midtown’s annual leasing totals were 6% below the fiveyear annual average at 14.81 million sq. ft.. Technology, advertising, media and information (TAMI) sector tenants were the leading drivers of leasing, accounting for 38% of all Midtown activity in the fourth quarter. Midtown South saw a slump in leasing activity with 1.6 million sq. ft. in the fourth quarter — 38% below the third quarter and 17% below the five-year quarterly average. Annual leasing, however, totaled 5.27 million sq. ft., up 5% from the five-year annual average.

Flight to Quality Persists Amid Wider Economic Uncertainties

Though new leasing is increasing, the market remains soft and fragmented. Many office tenants are delaying leasing decisions as uncertainty around macroeconomic conditions persists. Where leasing activity has remained strong, it is increasingly driven by Class A towers, as the flight to quality trend persists. Tenants are increasingly leasing smaller spaces located in newer buildings with robust amenities and updated building systems.

Owners of newly-built or amenity-rich buildings are reaping the benefits of this trend. The World Trade Center campus, Brookfield Place and newly-renovated properties have benefited the most in Lower Manhattan. Meanwhile, direct and sublet vacancies have mounted in the Financial East (roughly east of Broadway, South of Liberty Street) and Insurance (roughly east of Broadway, north of Maiden Lane) subdistricts. Key leases signed in 2022 in Lower Manhattan best reflect this trend, with these companies relocating from outside Lower Manhattan, moving within the neighborhood and/or taking sublease space.

• Freshfields Bruckhaus Deringer, a law firm, signed a 179,724 sq. ft. deal to relocate from 601 Lexington Avenue in Midtown to 3 World Trade Center. Freshfields significantly expanded its footprint in the move, upgrading from its former 110,000 sq. ft. offices.

• The Metropolitan Jewish Health System (MJHS) signed a 30-year lease for 138,374 sq. ft. at 55 Water Street. MJHS consolidated several locations around NYC, decreasing its total footprint by around 20%.

Lower Manhattan Top Leases, 2022

• Jane Street Capital expanded by 129,762sq. ft. at 250 Vesey Street in Brookfield Place. Jane Street now occupies 361,000 sq. ft. across six floors in the building. The significant expansion moved the firm into the top 20 ranking of Lower Manhattan’s largest private sector firms;

• Luxury fashion designer Alexander Wang announced it is moving its global headquarters to 46,000 sq. ft. at the Fulton Market Building in the Seaport;

• Vibrant Emotional Health, a mental-health services nonprofit, moved within Lower Manhattan from 50 Broadway to 59,550 sq. ft. at 80 Pine Street.

• New York Life took 47,355 sq. ft. of sublet space from Conde Nast at One World Trade Center. New York Life relocated within Lower Manhattan, downsizing from its previous 54,000 sq. ft. offices at 120 Broadway. New York Life’s sublease brought One WTC to 95 percent leased.

• Project management software firm Asana expanded by 44,100 sq. ft at 3 World Trade Center, taking a floor of sublet space from Uber;

• Private equity firm Motive Partners expanded by 43,285 sq. ft. at 7 World Trade Center;

• Scale Facilitation, an Australia-based consulting firm, signed a 36,099 sq. ft. lease to open a coworking and networking center for veterans and other first responders at One World Trade Center;

• Fiserv, which recently moved to One Broadway, signed a 38,772sq. ft. expansion; and

• Brookfield Properties expanded by 42,777 sq. ft. at 225 Liberty Street in Brookfield Place.

Renewal Volume Declines

Throughout 2022, there were 466,000 sq. ft. of lease renewals. Renewal activity fell 68% below 2021 levels as many tenants allowed their leases to expire, particularly in Class B and C buildings. In the five years preceding the pandemic, renewals were about 20% of total leasing velocity (new leasing plus renewals). In 2020, renewals began to take a greater share of total velocity — 45% in 2020 and 35% in 2021. In 2022, however, renewals only accounted for 13% of leasing velocity. Tenants who did renew their leases were largely in Lower Manhattan’s legacy industries and/or already located in Class A properties, and these were generally the largest deals among the renewals that occurred. Among the largest were:

• The Manhattan District Attorney’s Office renewed its 112,526 sq. ft. offices at 250 Vesey Street in Brookfield Place;

Lower Manhattan Top Relocations, 2022

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• Tech firm Celonis renewed and expanded its footprint by 75,538 sq. ft. at One World Trade Center;

• Berkshire Hathaway renewed its 68,732 sq. ft. lease at 85 Broad Street;

• Insurance company AXA Equitable renewed its 56,043 sq. ft. lease at 225 Liberty Street in Brookfield place;

• Capstone Investment Advisors renewed its 51,445 sq. ft. lease at 7 World Trade Center;

• King’s College renewed its 46,082 sq. ft. lease at 52 Broadway, downsizing from its former 81,350 sq. ft. space;

• New York State Division of Licensing Services renewed its 45,350 sq. ft. lease at 123 William Street;

• The CUNY Center For Worker Education renewed its 44,985 sq. f.t lease at 25 Broadway;

• The New York State Court of Claims renewed its 43,769 sq. ft. lease at 26 Broadway; and

• Mansueto Ventures, which publishes Fast Company and Inc., renewed its 40,000 sq. ft. lease at 7 World Trade Center.

Vacancy Rates Reach Record Highs Across Manhattan

According to Cushman & Wakefield, Lower Manhattan’s overall vacancy rate continued to rise as 1.1 million square feet of office space was added to the market in the fourth quarter. Overall vacancy stood at 22.7%, up 0.5% from last quarter and 1.6% year-over-year. This is the highest overall vacancy on record. Across office-class types in Lower Manhattan, Class A vacancy rose from 21.3% in the fourth quarter of 2021 to 22.7% by the end of 2022. The class B vacancy rate was 24.5%, up 2.1% year-over-year.

Despite improvements in leasing activity, the addition of new direct and sublease spaces being made available downtown has outpaced new leasing. Downtown submarkets with concentrations of new or upgraded buildings have fared better than those featuring a larger stock of older properties. Lower Manhattan now contains two submarkets with vacancy rates above 30 percent: the Financial West submarket (roughly west of Broadway, south of Liberty Street) has seen overall vacancy rates grow to an enormous 34.2%, a 7.3% increase over the past year — the highest vacancy among all Manhattan submarkets. In the Insurance District (roughly east of Broadway, north of Maiden Lane), vacancy rates grew to 31.5%, up 0.9% from last year.

The World Trade submarket (primarily the WTC campus and Brookfield Place complex), by contrast, has seen overall vacancy rates fall over the last year by 1.2% to 18.1%.

While Lower Manhattan’s vacancy rate remains the highest in Manhattan, the borough’s other markets are also experiencing unusually high vacancy. Both overall and Class A vacancy rates rose above 21% across all Manhattan office markets at the end of 2022. Midtown’s overall vacancy rate increased over the past year from 20.4% to 22.1% Class A office vacancy in Midtown rose to 21.6% as 10 large blocks greater than 100,000 sq. ft. became available; class B office vacancy also increased slightly to 23.4%. Within Midtown, the Penn District/ Hudson Yards submarket saw the greatest increase in vacancy over the past year.

Midtown South’s overall vacancy increased slightly to 22.2%, driven by added spaces in the Chelsea and Greenwich/NoHo submarkets. Class A office vacancies in Midtown South also saw increases to 22.7%, largely due to the addition of the newly-built 341 Ninth Avenue to the market. Class B office vacancy hit 23.5%, down slightly from late 2021. In total, direct vacancy has increased by nearly 12% since the pandemic began.

Hybrid Work Emerges as the New Normal

The remote work revolution has led to dramatic changes in who is downtown on any given day, with obvious consequences for commercial property owners and retailers. When the pandemic began in mid-2020, the vast majority of Manhattan’s office based employers adopted some form of remote work. When vaccines became widely available in 2021, employees slowly began to return to offices. Office occupancy appeared to be steadily increasing in 2021 until the arrival of the Omicron variant in December, which forced many employers to return to remote work. As the Omicron wave subsided in the first quarter of 2022, office occupancy began to pick up again.

Commentators have speculated over the last two years about a range of scenarios for the so-called “future of work,” but it now appears likely that some form of hybrid/flexible scheduling will become standard across many office-occupying industries. According to Kastle Systems, the second half of 2022 showed New York City office occupancy rates reaching their highest levels in the post-pandemic era. In the weeks following Labor Day, midweek office occupancy reached the mid-to-high 40% range, and occupancy rates have remained at this level. Occupancy in the New York metropolitan area reached an annual peak of 49.6% in late November, according to Kastle.

A Partnership for New York City survey of leading employers found the share of fully remote workers dropped from 28% in April to 16% as of mid-September. The survey results indicated that 77% of employers plan to maintain a hybrid office schedule and that 55% of employees are in the office at least three days a week. The survey projected office occupancy to climb to 54% by January 2023. While many remain remote or hybrid, several Lower Manhattan office tenants have committed to a five-day return to office schedule. Goldman Sachs, for example, brought back employees to their 200 West Street offices five days a week beginning in the fall.

Lower Manhattan’s 30 Largest Private Sector Tenants In 2022

Overall Vacancy Rates By Submarket

Source: Cushman & Wakefield

Lower Manhattan Office Asking Rents Continue to Inch Downward

A bifurcation in asking rents emerged over the last year, with rent in Lower Manhattan lagging behind the growing prices seen in Manhattan’s other office markets. Both overall and Class A asking rents continued to inch down for the fifth consecutive quarter in Lower Manhattan. Rents in Midtown rose over the fourth quarter, reaching parity with Midtown South at around $76.

According to Cushman & Wakefield, Lower Manhattan’s overall average asking rent fell by .04% to $55.87per sq. ft. — the fifth consecutive quarter during which pricing has fallen below $60. Class A asking rents fell by 4.6% over the quarter to $58.98 per sq. ft. — marking the lowest price since Q4 2014. Rents fell throughout most of the year, largely driven by sharper asking rent declines in Class A buildings. Class B average asking rents inched down by 0.4% over the past quarter to $51.95. Asking rents hit a peak in late 2018, when average overall rents were nearly $64 and average Class A rents were almost $68 per sq. ft..

Overall and Class A office rents in Midtown grew over the past quarter to $76.2 and $82.93, respectively, driven largely by the newly-built 66 Hudson Boulevard coming onto the market. Rents in Midtown South have seen strong growth, as tenants have continued to seek out space in new and boutique properties. Overall asking rents rose a

Overall Asking Rents By Submarket

Source: Cushman & Wakefield

dramatic 8.4% from the previous quarter to $76.70 per sq. ft., and Class A rents in Midtown South rose by 1.4% to $95.23, largely due to the completion of 341 Ninth Avenue and higher-priced space additions at 770 Broadway.

While flight to quality persisted over the last year, the formalization of hybrid work as a post-pandemic new normal and fears of a potential recession have encouraged downsizing and a shift towards smaller deals. High vacancy and competition from newer Class A properties in other Manhattan office markets has put pressure on downtown office rents. Declines in Class A rents have made these properties more accessible to firms seeking space in the highest quality buildings.

According to CBRE concessions for new leases are up 25% from pre-pandemic levels and downtown taking rents are now on average 9% below asking rents (pre-pandemic, the difference was around 5%). The average free-rent period increased to 18 months from 12 months at the end of 2019.

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. Three buildings are entirely vacant and undergoing significant renovation, following the departure of full-building tenants Deutsche Bank, Citigroup and AIG. Though they are being marketed for lease, the three towers won’t be available to be occupied for at least another two years. In addition to the existing blocks of available office space at the World Trade Center campus, 2 World Trade Center is still awaiting an anchor tenant before construction can begin on the 2.7 million sq. ft. office tower.

According to Cushman & Wakefield, the entirely vacant office buildings are as follows:

• 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 anticipates construction to be complete in 2023.

• 111 Wall Street has over 1 million sq. ft. available following Citigroup’s consolidation to 388 Greenwich Street in December 2019. The building was sold in early 2020 for $175 million. The 24-story, 1.1 million-square-foot building is undergoing a $500-million gut-renovation, which includes a new curtain wall facade, upgrades to the lobby and building systems, and installation of new amenities. The renovation is expected to be completed by 2024.

• 175 Water Street has 676,000 sq. ft. available following AIG’s relocation to 28 Liberty Street 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.

Not including full-building vacancies, properties with large blocks available for immediate occupancy include:

• 80 Pine Street has two large blocks available: nearly 488,000 sq. ft. across nine lower floors and 201,000 sq. ft across two mid-rise floors.

• 3 World Trade Center has nearly 113,000 sq. ft. across three floors near to top of the tower;

• 110 William Street has 280,000 sq. ft. of space available after the New York City Economic Development

Corporation and the Department of Small Business Services departed for One Liberty Plaza in 2019;

• 55 Water Street has two large blocks available: 220,000 sq. ft. across six lower floors and 137,000 sq. ft. across two upper floors;

• 200 Vesey Street has nearly 222,000 sq. ft. of space available on four floors, with the departure of the Securities and Exchange Commission to 100 Pearl Street;

• 200 Liberty Street has 198,000 sq. ft. available across three lower floors;

• 250 Broadway has 194,000 sq. ft. available across seven lower floors;

• 222 Broadway has 417,000 sq. ft. available in the bottom half of the building as Bank of America/Merrill Lynch vacated their space;

• 140 Broadway has over 235,000 sq. ft. across ten floors recently given up by Brown Brothers Harriman; and

• 120 Broadway has over 146,000 sq. ft. of space available on a contiguous block at the building’s base, after the New York State Attorney General left for 28 Liberty Street.

Older Office Buildings Undergo Extensive Renovations

Since the onset of the pandemic, Lower Manhattan has seen a wave of investment in the renovation and repositioning of older office stock. Faced with high vacancy rates and competition from newer buildings, landlords have increasingly turned to building upgrades as a way to attract new tenants. In total, property owners across twelve Lower Manhattan buildings have committed $985.5 million to extensive upgrades, including the full-building gut renovations underway at 60 Wall Street, 111 Wall Street, and 175 Water Street. Other buildings with significant renovations underway or recently completed include:

• 80 Pine Street: In 2022, Rudin Management completed extensive upgrades to the building including the addition of decorative glass components, updated signage, new storefronts, and LED lighting to the exterior façades along Maiden Lane and Pine Street and the renovation of the ground floor lobby and entryways. The new ground floor configuration allows for the creation of a dedicated lobby/ elevators for a flagship tenant. Rudin also added amenity spaces and outdoor terraces on four floors of the building.

• 80 Broad Street: Broad Street Development completed a $12 million renovation that included the installation of a new lobby, entranceway, common areas, freight entrance and mail center, and upgrades to retail storefronts. In addition, all elevator cabs and systems underwent a complete replacement and automation. New and upgraded HVAC and electrical systems were also installed, and new fire/life safety systems were added.

• 250 Broadway: AmTrust Realty is currently working on a $175 million renovation of the building’s main lobby on Broadway, and the addition of a secondary lobby on Park Place. A new escalator is also being added, which will lead to 18,000 sq. ft. of amenity space on the second floor dubbed “The Overlook,” featuring a coffee shop, lounges and conference rooms. Another 14,000 sq. ft. of basement space will become a fitness center with locker rooms, showers and two small indoor courts for basketball, squash or pickleball. In addition, the top two floors will become “executive suites,” with a 3,000 sq. ft. landscaped, wraparound outdoor terrace. When completed, the building will rebrand as “One Park Place.”

2022 Property Sales

The property sales market was active in 2022 with $2.34 billion in closed property deals. This past year’s sales were 25% higher than last year’s ($1.875 billion), 32% above 2019 levels ($1.77 billion), and more than double 2020 levels ($959 million). Lower Manhattan recorded 15 closed transactions in 2022, one more than in 2021.

Office Sales

55 Broad Street: Silverstein Properties and Metro Loft Management purchased the 425,000 sq. ft. office building for a reported $180 million from Rudin Management. The developers announced plans to convert the 30-story property into a residential building containing 571 marketrate apartments. The conversion is expected to take three to four years to complete.

175 Water Street: In mid-October 99c LLC, a boutique UKbased real estate investment firm, purchased 175 Water Street from Vanbarton Group for a reported $252 million. The 684,000 sq. ft. building served as the headquarters of AIG until 2019, when AIG vacated the building and sold it for $270 million. The developer announced plans to reposition the building into a commercial office space geared towards fashion, arts, culture and technology tenants. Plans for the building call for the creation of gallery spaces, retail, event spaces, restaurants, a pool and more.

25 Water Street (4 New York Plaza): Developers GFP, Metro Loft Management and Rockwood Capital closed on the purchase of 25 Water Street for $250.8 million. The 1.1 million sq. ft. office building will be reclad and converted to a 1,200-unit rental building. This will be the largest officeto-residential conversion to date nationwide.

40 Fulton Street: Investor David Werner closed on the purchase of 40 Fulton Street from Vornado Realty Trust for $101 million. Vornado initially began marketing 40 Fulton in May 2022, seeking between $130 million and $140 million for the 234,553 sq. ft. office building. Vornado reportedly lowered its asking price to make it easier for a potential buyer to complete the deal amid rising interest rates.

Retail Building Sales

47 Broadway: In early April, buyer Hiu Ian Cheng purchased the 5,122 sq. ft. commercial building at 47 Broadway for approximately $12.3 million from The Riese Organization. Two vacant retail spaces in the building include the former China Chalet and T.G.I.Friday’s.

55 Broad Street

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 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.

Multi-Family Residential Sales

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.

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 Lane from seller Michele Kahn for $9.5 million.

19 Dutch Street: 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.

Hotel Sales

75 Wall Street: The Hakimian Organization sold the 253room Andaz Wall Street hotel at 75 Wall Street 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. Hakiminan still owns the residential upper floors. The hotel portion was rebranded as the Hyatt Centric.

In January, Sono Hospitality, a South Korea-based hospitality group, closed on the purchase of the 66-room Mr. C Seaport Hotel at 33 Peck Slip from the Ghassemieh family, who currently own and operate 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.

Mixed-Use Sales

112-113 South Street: The Fogliano family sold a portfolio of two loft-style commercial buildings spanning 10,400 sq. ft. at 112-113 South Street to a private investor for $4 million. The buildings, which have been vacant since 2005, were listed in Feb. 2021 for $5,995,000.

25-27 Peck Slip: REDA Holdings also purchased the 10,635 sq. ft., 6-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 five-building portfolio located at 80-88 West Broadway (aka 70-74 Warren Street) for $36.1 million from seller Mark Jaffe. The portfolio contains six retail spaces, 17 rental 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.

Land & Development Sites

80 South Street: The development site went into receivership after Chinese developer Oceanwide Holdings defaulted on a reported $165 million loan. Ownership of the property was transferred to Kalo, an insolvency and restructuring firm. Oceanwide initially purchased the property from Howard Hughes Corporation for $390 million in 2016 with plans to build a supertall 1,500 foot tower. Oceanwide attempted unsuccessfully to sell the property last year for approximately $200 million.

Retail Openings Surpass Pre-Pandemic Levels

The pace of retail openings substantially outpaced 2021 and in fact exceeded pre-pandemic levels, with over 150 retailers opening in 2022. For comparison, 93 retailers opened Lower Manhattan in 2021 and 105 opened in 2019. Nearly two-thirds of the openings were food and beverage operators. Many retailers that opened in 2022 were long-awaited, major new additions to the Lower Manhattan market. They include:

• The Tin Building by Jean-Georges opened in late summer featuring two gourmet grocery stores, 12 restaurants and four bars offering a variety of cuisines and service types ranging from full-service to fast-casual dining;

• Urbanspace food hall opened at 100 Pearl Street, featuring 16 different vendors offering a variety of cuisines ranging from pizza and burgers to Taiwanese, Greek and Puerto Rican. Urbanspace doubles as a block-through walkway at the base of the 27-story office tower. The 15,000 sq. ft. space was formerly an open-air arcade that was enclosed and redesigned following a 2017 rezoning measure intended to bring more life into little-used plazas and arcades in the Water Street corridor;

• Kim’s Video, the famous independent movie rental store from the East Village, reopened in the Alamo Drafthouse at 28 Liberty Street;

• Hall des Lumières, an immersive digital arts center, opened in the 28,000 sq. ft. landmarked former Emigrant Industrial Savings Bank hall at 49 Chambers Street. Hall des Lumières is a partnership between Culturespaces, a museum and art center operator, and IMG, which manages fashion and media events.

• Le Gratin, a new French restaurant featuring Lyonnaise cuisine and helmed by chef Daniel Boulud, opened in the Beekman Hotel in the former Augustine space;

• La Marchande, a French restaurant led by chef John Fraser, opened at the new Wall Street Hotel at 88 Wall Street.

• Life Time Fitness, a high-end gym, opened a 74,000sq. ft.. sq. ft location at One Wall Street.

• QC NY Spa debuted on Governors Island. The 74,000-sq.-ft. facility includes luxurious day spa amenities, including outdoor pools with skyline views of Lower Manhattan;

• Gitano Island, the Tulum-inspired Mexican restaurant, also opened on Governors Island in early July, The 27,000 sq. ft. venue features a mezcal bar, two dining patios, and a state-of-the-art DJ tent centered around a water feature

• Trinity Boxing Club opened a 4,500 sq. ft. flagship venue at 20 Vesey Street in the space once temporarily occupied by The National September 11 Memorial Museum. Trinity Boxing first opened at 110 Greenwich Street in 2004 and moved to Duane Street in Tribeca in 2014.

A few notable Lower Manhattan retailers that were thought to have permanently closed during the pandemic reopened or announced plans to reopen. They include:

• Manhatta reopened its penthouse restaurant at 28 Liberty Street in March, shifting towards a more bar-focused menu;

• Blue Ribbon Federal Grill reopened as Blue Ribbon Sushi Bar & Grill at 84 William Street,

• Racines wine bar at 94 Chambers Street reopened as Chambers in May; and

• Century 21 will reopen its flagship department store at 22 Cortlandt Street in Spring 2023, in partnership with Legends Hospitality. Century 21 will shrink its footprint to 100,000 sq. ft. over four floors from its previous 200,000 sq. ft..

Shopping Complexes Expand Their Offerings

Across Lower Manhattan’s three shopping centers, there were several notable openings and announcements, as well as closures:

• Westfield World Trade Center: Nine retailers opened in the Oculus including a long-stalled Duane Reade and The Canvas, a boutique featuring independent fashion brands. The Canvas also opened an events and gallery space on the lower concourse in the former Lacoste and Victoria’s Secret spaces. Fourteen retailers closed including Starbucks, Lacoste, REISS, and Sketchers. At Gansevoort Liberty Market 11 new casual eateries opened — Sal Anthony’s,