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Q2 2022
LOWER MANHATTAN REAL ESTATE MARKET REPORT
Lower Manhattan Real Estate Market Report | Q2 2022
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Q2 2022
LOWER MANHATTAN REAL ESTATE MARKET REPORT The second quarter’s office leasing total in Lower Manhattan declined noticeably from the first quarter. A combination of muted leasing and growing direct and sublet vacancies continued to push asking rents downward. This quarter marks a record in which the overall vacancy for all three Manhattan office markets was over 20%.
Lower Manhattan Annual New Leasing Activity, 2017-2022 Source: CBRE
While storm clouds surrounded the office market, the second quarter saw visitors returning to Lower Manhattan in increasing numbers and enjoying new hotels and eateries. Contrary to citywide rents, median apartment rents in Lower Manhattan — while still high — saw decreases from the record set last quarter, signaling a potential ceiling for the neighborhood. The retail and hotel markets showed positive momentum over the spring and into the early summer. A number of sit-down and casual restaurants opened, replacing vacancies created during the pandemic, and Century 21 announced it will be returning to its flagship location. A new boutique hotel opened on Wall Street and hoteliers noted strength in business and leisure travel.
Leasing Activity Declines in Lower Manhattan The second quarter saw Lower Manhattan record 606,000 sq. ft. of office leasing, according to CBRE. This is the second consecutive quarter during which leasing activity fell in Lower Manhattan. While activity rose slightly over 2021 levels, second quarter leasing dropped 31% lower quarter over quarter. Leasing remains 45% lower than the fiveyear quarterly leasing average. A lack of large transactions contributed to the slowdown in leasing. Midtown Manhattan saw 4.24 million sq. ft. of leasing activity in the second quarter, double the square footage signed from last year, and 15% above the five-year quarterly average. This is the second highest quarterly total since Q4 2019 and the fourth consecutive quarter with over 3 million sq. ft. of leasing. Financial services tenants were the largest Lower Manhattan Real Estate Market Report | Q2 2022
606,000
Square Feet Of New Leasing In The Second Quarter, 45% Below the Five-Year Quarterly Average
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drivers of activity (nearly 50% of leasing), seeking space in new construction or heavily renovated office buildings. Midtown South saw leasing activity improve markedly over the past year, rising 40% year-over-year to 1.1 million sq. ft. Nonetheless, leasing activity was 12% below the five-year quarterly average and 22% below the first quarter. Financial services were also the largest of Midtown South’s leasing activity (29%), particularly among alternative investment/ venture capital firms seeking boutique, high-end office product.
Financial Firms Recommit to Lower Manhattan Jane Street Capital signed the largest deal of the quarter, recommitting to Lower Manhattan. The financial trading firm signed a 129,762-sq.-ft. expansion lease at 250 Vesey Street. Jane Street now occupies 361,000 sq. ft. across six floors in the building. The significant expansion moves the firm into the top 20 ranking of Lower Manhattan’s largest private sector firms. Fiserv, which recently moved to One Broadway, signed a 38,772-sq.-ft. expansion. The financial services company has now grown to over 132,000 sq. ft. at the recently renovated office building. Other FIRE tenants to sign leases include: Capstone Investment Advisors with a 51,445-sq.ft. renewal and Motive Partners’ 43,285-sq.-ft. expansion, both at 7 World Trade Center, and Nationwide Mutual Insurance’s lease for 38,187 sq. ft. at One Battery Park Plaza. 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. Alexander Wang will be joining a growing number of prominent fashion industry tenants in Lower Manhattan, including Hugo Boss, Gucci, Nike and Golden Goose. Since 2015, 75 companies in the retail trade sector have relocated their office to Lower Manhattan, accounting for over 2.7 million sq. ft.. Other notable transactions include Mansueto Ventures (parent company to Inc. and Fast Company magazines) signing a 40,000-sq.-ft. renewal at 7 World Trade Center; Industrious, a flex office provider, signing a 44,000-sq.ft. management deal with 25 Broadway; and the Brennan Center for Justice announcing a 24,409-sq.-ft. expansion at 120 Broadway, now occupying nearly 50,000 sq. ft.. Lower Manhattan Real Estate Market Report | Q2 2022
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Lower Manhattan Top Leases, Q2 2022 Source: Downtown Alliance, CBRE, Colliers, Newmark Knight Frank, CoStar
Tenant Name Location
1
2
3
4 5
6
7
8
9
10
Jane Street Capital 129,762
FIRE
Expansion
Capstone
51,445 Renewal
FIRE
Alexander Wang 1 Fulton Street
47,000 Relocation
Retail Trade
NYS Office of General Services
45,350 Renewal
Government
7 World Trade Center
123 William Street
Industrious
44,000 Prof. Services, New LM Location Flex Office
Motive Partners
7 World Trade Center
43,285 Expansion
FIRE
Mansueto Ventures
40,000 Renewal
TAMI, Media
One Broadway
38,272 Expansion
FIRE
Nationwide Mutual Insurance
38,187 Move Within LM
FIRE
28,307 Move Within LM
Professional Services, Law
24,409 Expansion
Nonprofit
26 Broadway
7 World Trade Center
Fiserv
1 Battery Park Plaza
Cullen & Dykman 1 Battery Park Plaza
120 Broadway
Open Squash
100 Pearl Street
Kennedy Lewis 13 Investment Mgmt 225 Liberty Street
14
Sector
250 Vesey Street
Brennan Center 11 for Justice
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SF Leased Transaction
TB Alliance
80 Pine Street
NY Academy of 15 Sciences 115 Broadway
22,915 Other New LM Location 22,600 Relocation
FIRE
21,561 Move Within LM
Nonprofit
20,766 Move Within LM
Nonprofit
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Vacancy Rates Remain High Across Manhattan While leasing activity decreased 31% from the last quarter, Lower Manhattan’s overall vacancy rate remained flat at 21.6% due to the absence of large block additions, according to Cushman & Wakefield. Since the second quarter of 2020 (beginning of the pandemic), the overall vacancy rate has grown by almost 10 percentage points to a record high of 21.6%. Over 661,000 sq. ft. were made available for sublet this past quarter, the third consecutive quarter to see an increase in sublet space. Nearly 30% of all available office space in Lower Manhattan is sublet space, totaling 6.05 million sq. ft.. Class A vacancy in Lower Manhattan declined slightly over the past quarter to 21.2%, although it grew over 3 percentage points year over year. More notably, the Class B vacancy rate rose significantly year-over-year, increasing from 15.7% to 24% — an eight percentage point increase. Of particular concern is the dramatic increase in overall vacancy rates in the Insurance District (roughly east of Broadway, north of Maiden Lane) where rates have increased over 15 percentage points year-over-year to 32.8%.
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Overall Vacancy Rates by Submarket Source: Cushman & Wakefield 21.6% 21.4% 21.3%
This quarter marks a record in which the overall vacancy for all three Manhattan office markets was over 20%.
Class A Vacancy Rates by Submarket Source: Cushman & Wakefield 21.2%
This quarter marks a record in which the overall vacancy for all three Manhattan office markets was over 20%. Midtown’s overall vacancy rate hit a record high, increasing to 21.4% — on par with Lower Manhattan — as large blocks became available in the Penn Station/Hudson Yards submarket. Class A and Class B office vacancy in Midtown remain at record highs of 20.8% and 23.2%, respectively.
20.8% 18.1%
Midtown South’s overall vacancy increased nearly two percentage points to 21.3% over the past quarter, a higher pace than Lower Manhattan and Midtown. Class A and Class B office vacancies in Midtown South both saw 4 percentage point increases to 18.1% and 25%, respectively, — a record highs for that market.
Lower Manhattan Office Asking Rents Continue to Inch Downward Recent rent trends in Lower Manhattan continue to diverge from trends in Midtown and Midtown South. Over the past four quarters, overall and class A office rents in the other Manhattan markets are either stabilizing or showing increases. This is the third consecutive quarter where rents have inched downward in Lower Manhattan. As companies evaluate their future space needs, many are taking advantage of a tenant’s market. Class A towers are driving office leasing, as the flight to quality trend Lower Manhattan Real Estate Market Report | Q2 2022
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continues across all markets. Tenants are more willing to pay higher rents in exchange for better located buildings with strong amenities and updated building systems with some tenants taking less office space as remote work continues to be popular.
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Overall Asking Rents by Submarket Source: Cushman & Wakefield
According to Cushman & Wakefield, Lower Manhattan’s overall average asking rent fell slightly to $56.80 per sq. ft. over the last quarter — down 5.5% year over year and over 11% below the highs seen in early 2019. This is the third consecutive quarter below $60. Class A asking rents inched downward over the quarter and 6.5% over the year, to $60.54 per sq. ft.. Class B average asking rents were relatively stable over the past quarter and year, standing at $52.24. Rents in Midtown increased for the third consecutive quarter. Overall and class A office rents in Midtown increased 4% over the past quarter at $76.84 and $83.52 per sq. ft., respectively, driven heavily by above-market rents in new construction office buildings in Hudson Yards. In Midtown South, overall asking rents were stable over the quarter, but increased 4% over the past year to $71.69 per sq. ft.. Class A rents in Midtown South also increased by 4% over the past year, now standing at to $90.12 due to buildings in Madison/Union Square and Greenwich Village/Noho. This is the third consecutive quarter with Class A rents in Midtown South being above $90 per sq. ft., returning to a norm seen in the years leading up to the pandemic.
Return to Office and Pedestrian Traffic Continues to Tick Up According to Kastle Systems, New York City office occupancy rates (based on key fob swipes) have continued to increase since the beginning of the year, increasing from 38% in April to around 43% by late June — the highest rate since the start of the pandemic. Return to work rates in New York are now roughly on par with the 10-city average in the U.S. at around 44%, and are slightly higher than other markets in the northeast. Several major property owners have also reported that occupancy rates are substantially higher than the weekly average on Tuesdays, Wednesdays and Thursdays.
MAJOR PROJECTS UPDATE
$76.84
$71.69
$56.80
Class A Asking Rents by Submarket Source: Cushman & Wakefield
$90.12
$83.52
$60.54
Recent pedestrian counts in Lower Manhattan have also noticeably increased. By the end of June, total monthly foot traffic was up 4% from the end of the first quarter. The weekday daily average was up 1% month-over-month and the weekend daily average was up 7%. Increased office occupancy, particularly midweek, is driving weekday traffic, as well as growing tourism and warmer weather is also contributing to the busier feel on the streets. Lower Manhattan Real Estate Market Report | Q2 2022
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Second Quarter 2022 Property Sales Office Building 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. Residential Property 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 last November, seeking over $850 million. 19 Dutch Street: At the beginning of the third quarter, Pontegadea, a real estate firm owned by ZARA founder Amancio Ortega, entered into contract to purchase the 64-story, 483-unit apartment building for approximately $500 million from Carmel Partners. Pontegadea is paying roughly $1 million per unit for the building. Carmel wrapped up construction of the tower in 2018. Mixed-Use Building Sales 109 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.
Lower Manhattan Real Estate Market Report | Q2 2022
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Recent Pending Sales Announcements 40 Fulton Street: Vornado Realty Trust began marketing the 234,553 sq. ft. office building for sale, reportedly seeking between $130 million and $140 million. The building is fully leased, including to Fortune Media. 40 Fulton is speculated to be converted to residential use, given its smaller floor plates and good light access. 25 Water Street: A partnership between Metro Loft Management and investment firm Rockwood entered into contract to purchase the 1.1 million sq. ft. office building (also known as 4 New York Plaza) for approximately $250 million from Edge Funds. JPMorgan Chase, whose 700,000 sq. ft. lease goes through 2025, and is currently offering the entire space for sublease. While the building appears poised for residential conversion, doing so will likely require significant facade work to add new windows necessary for residential units. 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. One New York Plaza: Brookfield Asset Management and China Investment Corporation began marketing the 2.7 million sq. ft. office building for sale. The fully leased office tower is home to Morgan Stanley, Fried Frank, Macmillan, Fullbeauty Brands and Revlon. The tower was valued at $1.4 billion in 2016.
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RETAIL Thirty-four retailers opened in the second quarter. This is the second consecutive quarter during which retail openings outpaced 2019 levels. With a few exceptions, all the recent openings are filling vacancies created during the pandemic. Over two-thirds of these were food and beverage businesses, including: • 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.
Sadly, 23 retailers closed during the second quarter. Several were longtime favorites that will be missed, including: • Mulberry & Vine closed at 73 Warren Street due to a sharp drop in daily office workers;
• Le Gratin, a new French restaurant featuring Lyonnaise
Century 21 Announces Return
• La Marchande, a French restaurant led by chef John
Century 21 announced plans to 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. across seven floors. The department store will also no longer occupy the two-story bank hall along Church Street.
cuisine and helmed by chef Daniel Boulud, opened in the Beekman Hotel in the former Augustine space.
Fraser, opened at the new Wall Street Hotel at 88 Wall Street.
• Chambers restaurant and wine bar opened at 94 Chambers Street in the former Racines space.
• Warren Peace, a European-style bistro, opened at 77
Warren Street, replacing Warren 77 bar and restaurant.
• Della’s, a wine bar from the team at Frankly Wines, opened at 66 West Broadway in the former Vin Sur Vingt space.
• Mezze on the River opened at 375 South End Avenue, replacing the former Merchant’s River House.
• Shinjuku Japanese Deli and Hey Thai, a full-service Thai restaurant, opened at 200 Water Street in the former Plaza Deli space.
• Dark Horse bar (formerly known as 17 Murray) closed at 17 Murray Street;
• The Patriot Saloon closed at 110 Chambers Street. It was named one of NYC’s great dive bars by Grub Street; and
• Greenwich Street Jewelers left its 64 Trinity Place location after 45 years to move to Tribeca.
The reopened flagship store will continue to carry mens and womens clothing, shoes, and accessories, but will discontinue home goods, cosmetics, intimate apparel and tech items.
• GAP reopened at 172 Broadway as GAP Factory, after closing early in the pandemic.
Lower Manhattan Real Estate Market Report | Q2 2022
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HOTELS + TOURISM Tourism Begins to Rebound 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 is anticipated to rise higher 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 by 2023.
Lower Manhattan Hotel Pipeline Source: Downtown Alliance
Hotel / Address 1 2 3
4
5
• The Wall Street Hotel opened at 88 Wall Street with
180 rooms. The building recently completed conversion from an underutilized office property. The hotel also features La Marchande restaurant helmed by chef John Fraser, a rooftop bar and terrace called Tontine, and a private ballroom; and
• The former 232-room WhyHotel
at 110 Wall Street rebranded as Placemakr Wall Street. The property was previously WeLive apartments.
Rooms Open Date
Premier Emerald LLC
143
2022
Union Investment Real Estate
326
2022
Fit Investment Group
173
2023
The Warren Street Hotel
Solil Mgmt/ Firmdale
70
2023
The Ned Hotel at American Stock Exchange
Yucaipa Companies
174
2023
AC Hotel
Hidrock Realty
230
TBD
Tempo by Hilton
Hidrock Realty
296
TBD
TBD Hotel
The Moinian Group
172
TBD
11 Stone Street
Motel One
133 Greenwich Street
Hotel Indigo
50 Trinity Place
86 Warren Street
123 Greenwich Street
Hotel Inventory Continues to Grow The current hotel inventory in Lower Manhattan stands at 8,424 rooms across 40 hotels, including two hotels that opened in the second quarter:
The Fidi Hotel
Owner/ Developer
6 7 8
112 Liberty Street
140-142 Fulton Street
7 Platt Street
Total Hotels in the Pipeline
8
Total Hotel Rooms in the Pipeline
1,584
5.7 MILLION
Tourists Visited Lower Manhattan in 2021 - Double The Number of Tourists in 2020, but Still 60% Lower Than 2019 Estimates.
Lower Manhattan Real Estate Market Report | Q2 2022
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There are over 1,500 hotel rooms across 8 hotels under construction or in development in Lower Manhattan. Nearly 470 rooms across two hotel developments are anticipated to open later in 2022. They include:
• The Fidi Hotel at 11 Stone Street with 143 rooms; • Motel One at 133 Greenwich Street with 326 rooms. The property was formerly a Courtyard that closed in 2021 and will be rebranded; and
• The 289-room former Radisson Hotel at 52 William
Street ceased operating as a temporary homeless shelter on June 30. The hotel anticipates reopening in mid-August 2022.
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Occupancy Improves As Business and Leisure Travel Rebounds Though citywide hotel occupancy metrics remain below pre-pandemic levels, occupancy has improved markedly over the last year as business and leisure travel resume in New York. Lower Manhattan recorded hotel occupancy at 77% in the second quarter, 22% higher than last year and only 11% lower than the same period in 2019. Leading into the summer, occupancy rates have averaged in the high-80s and hit mid 90% on weekdays. Lower Manhattan saw average daily room rates rise to $294 per night in the second quarter, 10% above spring 2019 rates and a substantial 81% above those seen in the second quarter of 2021.
The Wall Street Hotel opened at 88 Wall Street
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7 Dey Street (formerly known as 185 Broadway) received its certificate of occupancy in the second quarter. Developed by SL Green, the 34-story building has 209 rental units (30% of which are affordable), and 43,000 sq. ft. of commercial office and retail space across several floors, including a new One Medical. The building sits on three lots that SL Green bought and combined for $92.2 million (replacing three previous buildings), as well as air rights purchased from the MTA. The building received a 421a tax abatement. Later this year, construction is expected to wrap up on One Wall Street. Macklowe Properties is finalizing work on the conversion of the landmarked office tower into 566 condominiums. The building will offer 157,000 sq. ft. of retail, including a 44,000-sq.-ft. Whole Foods and 74,000-sq.-ft. Lifetime Fitness, both expected to open in late 2022. Two key residential developments progressed forward with notable milestones this past year:
• 160 Water Street: Vanbarton Group filed plans and
began construction to convert the 24 story, 482,000 sq. ft. office building into a 586-unit market rate rental building. Vanbarton partnered with Metro Loft to convert a similar building at 180 Water Street in 2017. The conversion plan calls for the addition of five new floors and the building will be reclad with glass curtain walls. Construction is scheduled for completion by late 2025;
•
5-83 Nassau Street: New construction permits were 7 filed at the long vacant site on Nassau Street. Lexin Capital acquired a series of low-rise buildings and bought neighboring air rights in 2014. In 2015, the buildings were demolished, with plans for construction to be completed by 2018. The site has been unbuilt and vacant since 2015. The original design called for a 40-story tower with 229 rental apartments; Lower Manhattan Real Estate Market Report | Q2 2022
MAJOR PROJECTS UPDATE
Lower Manhattan Residential Pipeline Source: Downtown Alliance
Inventory and Development Lower Manhattan has 33,677 units in 343 residential buildings. There are 4,925 units in 15 buildings under construction or planned for development, with about 74% currently planned as rental units and 26% as condos.
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Address Condo + Rental Units Under Construction
Lease / Building Type
Units
Total
2,533
Condo
1
One Wall Street New Construction
2
1 Park Row
3
Open Date
566
2022
Condo New Construction
58
2023
7 Platt Street
Rental New Construction
250
2025
4
8 Carlisle Street
Rental New Construction
400
2025
5
160 Water Street
Rental Conversion
586
2025
6
250 Water Street
Rental New Construction
270
TBD
7
161 Maiden Lane
Condo New Construction
80
TBD
8
45 Park Place
Condo New Construction
50
TBD
9
125 Greenwich Street
Condo New Construction
273
TBD
571
2026
Rental 10 55 Broad Street Conversion
Liberty 11 130 Street
Rental New Construction
1,325
2028
Nassau 12 75-83 Street
Rental New Construction
229
TBD
TOTAL UNITS IN THE PIPELINE
4,925
$4,000
Median Rent in Lower Manhattan — Down 9% From The Record High Set Last Quarter 10
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• One Park Row: Foundation work is continuing on the new development at One Park Row. Circle F Capital is developing a 23-story, 103,000-sq.-ft. tower with 58 condos and 19,000 sq. ft. of commercial space. Construction is expected to wrap in late 2023; and
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Median Residential Rental Price Source: Miller Samuel/Douglas Elliman
• 7 Platt Street:
Foundation work is also ongoing at Moinian’s 38-story, 250 rental unit tower. The existing five story structure was demolished last year and construction is scheduled for completion in 2025.
Residential Rental Prices Begin To Cool in Lower Manhattan According to residential statistics published by Miller Samuel/Douglas Elliman, the median rent in Lower Manhattan fell to $4,000, down over 9% from the record high seen last quarter but still 7.5% higher than in the second quarter of 2021. Median rents are now on par with where they were in 2019. Rental prices in the neighborhood appear to be cooling after three consecutive quarters during which Lower Manhattan’s median rent broke record highs. Declining rents in Lower Manhattan may signal a bellwether for the higher end of the rental market, but ongoing demand, limited supply, a lack of concessions and a busy summer rental period suggest that overall rents may continue to rise.
130 Liberty Street
Median Residential Sales Price Source: Miller Samuel/Douglas Elliman
However, contrary to the declines seen in Lower Manhattan’s rental price, Manhattan’s overall median rent rose to $4,000 — up 8.3% from the previous quarter and over 23% year-over-year. Overall rents in Manhattan have risen to record highs for two consecutive quarters and are now on par with median rents in Lower Manhattan. The last time the median rents between Lower Manhattan and Manhattan overall were in parity was in the depths of the pandemic when rents hit record lows. The sales market remained robust in the second quarter as median sales prices rose significantly despite increased interest rates. The median sales price for co-ops and condos in Lower Manhattan rose to $1.412 million, up nearly 23% year-over-year. Median prices are also over 30% higher than pre-pandemic. Listing discounts did notably increase, hitting nearly 15%, as it became a buyer’s market. Across Manhattan, median sales prices were up 11% yearover-year at $1.25 million.
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MAJOR PROJECTS UPDATE World Trade Center Ronald O. Perelman Performing Arts Center Construction on the Ronald O. Perelman Performing Arts Center topped out in the spring of 2021. Exterior facade work on the 4,900 marble panels wrapped in early 2022. The approximately 110,000-sq.-ft. cube-shaped building will feature three theaters of varying sizes which can be combined in different seating configurations and formats for an array of unique performance environments. The project is anticipated to open in 2023.
To reduce system costs and public subsidy, the NYC Ferry announced in July that it will move away from the universal $2.75 fare, in favor of dynamic pricing. The base fare will increase to $4. The NYC Ferry service will also pilot the ‘Rockaway Rocket’, a new, reservation-based pilot program running on summer weekends from Pier 11-Wall Street directly to the Rockaways. NYCEDC, which oversees NYC Ferry, will seek a new operator and continue to find opportunities to reduce system costs and public subsidy.
St. Nicholas Greek Orthodox Church and National Shrine Construction of the Santiago Calatrava-designed St. Nicholas Greek Orthodox Church and National Shrine is nearing completion, with white marble panels now installed on the exterior. The $80-million project, located atop Liberty Park, anticipates opening in fall 2022.
Street Reconstruction Reconstruction of Front Street between Old Slip and John Street began in January 2020 and is scheduled for completion in Summer 2022. 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 Street will also be redone in tandem. Vesey Street reconstruction, between Church Street and Broadway, began in early 2022, along with Nassau Street reconstruction, between Pine Street and Maiden Lane, which will begin later in 2022.
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 Street. The site currently serves as a Port Authority police depot and temporary plaza. The proposed 1.56 million-sq.-ft. tower is estimated to have over 1,300 rental apartments, of which approximately 25% will be affordable. LMDC approved an override to city zoning rules in order to build a tower larger than local regulations allow. Plans are still not finalized and a further public review process is planned. Construction hopes to commence in 2023.
Transportation Infrastructure Expanding Commuter Ferry Service A new ferry route is scheduled to open this summer connecting Elizabeth, NJ to Pier 15 in Lower Manhattan. The trip is anticipated to take 30 minutes. A separate shuttle bus will also launch, connecting the Elizabeth ferry to Newark International Airport.
Lower Manhattan Real Estate Market Report | Q2 2022
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. 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.
Courtesy of NYC Department of Transportation
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Urbanspace at 100 Pearl Street
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/business/research-statistics Lower Manhattan Real Estate Market Report | Q2 2022
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