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Q3 2023
LOWER MANHATTAN REAL ESTATE MARKET REPORT
Lower Manhattan Real Estate Market Report | Q2 2022
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Q3 2023
LOWER MANHATTAN REAL ESTATE MARKET REPORT Office leasing activity slowed in the third quarter as the market settled back to post-pandemic levels after a single large lease inflated activity in the second quarter. While the market recorded only 620,000 sq. ft. of activity, this still represents a 20% increase compared to the first quarter of 2023. Tenants choosing to take advantage of favorable market conditions to remain in Lower Manhattan continued to drive leasing in the third quarter while relocation activity increased slightly. Vacancy rates remain high across asset classes in the district despite marginal improvements in the third quarter. Lower Manhattan’s residential and hospitality markets remained robust as residential rents continued to reach record highs and hotel occupancy growth outpaced the citywide average. In September the long awaited Ronald O. Perelman Performing Art Center opened at the World Trade Center campus. This spectacular new cultural facility joins a growing list of arts and entertainment venues in the district.
Lower Manhattan Annual New Leasing Activity, 2017-2023 Source: CBRE
Legacy Industries Support Office Leasing in Q3 Lower Manhattan recorded 620,000 sq. ft. of office leasing in the third quarter, according to CBRE. Leasing activity fell by 45% from the previous quarter and finished 38% below the five-year quarterly average. A substantial drop-off from the second quarter’s leasing total was expected, as activity returned closer to trends seen over the last several years. Leasing activity has improved since the beginning of the year, increasing nearly 20% compared to the first quarter. Leasing activity improved in the other Manhattan submarkets, but remains well below the five-year quarterly average. Midtown saw 2.86 million sq. ft. of leasing activity in the third quarter, a slight improvement over the previous quarter, but still 18% below the five-year quarterly average. The prime Midtown submarkets have not recorded a quarterly leasing total over 3M sq. ft. since the third quarter of 2022. Midtown South recorded 814,330 sq. ft. of leasing Lower Manhattan Real Estate Market Report | Q3 2022
620,066
Square Feet Of New Leasing In The Third Quarter
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in the third quarter — up 12% from the second quarter but 31% below the five-year quarterly average. Leasing in Midtown South has now fallen below the five-year quarterly average for four consecutive quarters.
Leasing Activity Settles Back to PostPandemic Levels Relocation activity improved slightly over the previous quarter as Lower Manhattan saw four new tenants move into the region (compared with Q2’s three). Tower Research Capital moved from Midtown South (148 Lafayette St.) to a 121,903 sq. ft. space at 120 Broadway. Morgan & Morgan, an injury law firm, moved from its previous location in Midtown and signed a 34,792 sq. ft. lease at 199 Water St. Worldwide Tech Services relocated from Midtown to a new 5,467 sq ft. space at 250 Broadway. Noble Capital, a financial services firm, signed a 9,767 sq. ft. lease at 40 Wall St., leaving its Midtown East offices behind. Renewals continued to account for the lion’s share of leasing activity in the market. Tenants recommitting to Lower Manhattan accounted for 254,000 sq. ft of the district’s third quarter leasing, almost one-third of all leasing in Lower Manhattan. The largest deal came from the Department of Citywide Administrative Services, which is renewing a 183,255 sq. ft. lease at 255 Greenwich St. The second largest comes from the Center for Reproductive Rights, a non-profit organization renewing a 35,995 sq. ft. lease at 199 Water St. Several tenants have taken advantage of favorable market conditions to relocate within the district. Hawthorne Country Day School made a move within Lower Manhattan, relocating from its 156 William St. location to 233 Broadway (29,595 sq. ft.). Previously located at 1 New York Plaza, the National Futures Association signed a 29,959 sq. ft. lease at 200 Liberty St. The organization decreased its footprint from 36,000 sq. ft. of space.
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Lower Manhattan Top Leases, Q3 2023 Source: Downtown Alliance, CBRE, Colliers, Newmark Knight Frank, CoStar
Tenant Name
SF Leased Transaction
Sector
City of New York 255 Greenwich St.
183,255 Renewal
Government
2
Tower Research Capital LLC
121,904 New Lease
FIRE
3
Center for Reproductive Rights
35,995
Morgan & Morgan
34,792
Location
1
120 Broadway
199 Water Street
4 5
199 Water Street
Renewal
New Lease
Hawthorne Country 34,076 Day School 233 Broadway
New Lease
Nonprofit
Law
Education
6
National Futures Association
29,959 Renewal
FIRE
7
Energy Capital Partners
26,292 New Lease
FIRE
Adonis Technology
23,398 New Lease
TAMI, Technology
Madhive
16,500
TAMI, Technology
8 9
200 Libert Street
One World Trade
255 Broadway
Golden Goose 10 Dleuxe Brand 120 Broadway
New Lease 13,071 Expansion
Retail Trade
The financial services sector, long a mainstay of Lower Manhattan office occupancy, accounted for 45% of third quarter leasing activity, while the second highest share came from technology (12%). Adonis Technologies’s 23,398 sq. ft. sublease space at 3 World Trade Center and Madhive’s 16,500 sq. ft. lease at 255 Broadway were the two largest technology leases of the quarter.
Lower Manhattan Real Estate Market Report | Q3 2022
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Vacancy Rates Remain High Across Manhattan According to Cushman & Wakefield, Lower Manhattan’s overall vacancy rate is nearly the same as last quarter, falling 0.3% to 23.9%. Despite this very slight quarterover-quarter improvement, the district’s overall vacancy rate is still up 1.7% year-over-year. Downtown continues to have the highest vacancy rate among the Manhattan submarkets. Across office-class types in Lower Manhattan, Class A vacancy fell by 0.7% from the previous quarter and grew 0.9% from last year to 23%.
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0.5% and 0.2%, respectively. In contrast, both Midtown and Midtown South saw asking rents increase year-over-year while Lower Manhattan’s year-over-year overall asking rents fell by 0.4%. Overall asking rents in Lower Manhattan have now been below $60 for eight consecutive quarters. Class A asking rents in Lower Manhattan fell by 60 bps over the past quarter to $59.69 per sq. ft., returning to sub-$60 per sq. ft. asking rents. Year-over-year, however, rents are 0.6% higher. Class B average asking rents fell by 0.6% over
Overall Vacancy Rates by Submarket Source: Cushman & Wakefield
The “flight to quality trend” that has defined commercial leasing since the beginning of the pandemic continues to influence the Lower Manhattan office market. The World Trade Center submarket (which includes Brookfield Place and some surrounding buildings)’s Class A properties saw the most dramatic improvement as vacancies fell by 2.1% to 20.4%. Overall vacancy in the World Trade submarket has decreased by 1.7% since the second quarter, falling to 19.6%. The Class B vacancy rate grew to a record high of 27.3%, up 2.9% year-over-year. The Financial West (roughly west of Broadway, south of Liberty St) and Insurance District areas saw a very slight recovery with vacancy rates of 34.5% (-0.7%) and 34.7% (-0.4%), respectively. While this is an improvement over the previous quarter, where vacancy rates in both areas exceeded 35%, it is still notably high. While Lower Manhattan has the highest vacancy rate among the three NYC office markets (23.9%), Midtown and Midtown South are not far behind at 21.4% and 22.4%, respectively. All three markets, however, saw slight improvements from their previous quarters’ vacancy rates — yet all rates fell by less than a percentage. Class A vacancy rates in Midtown and Midtown South fell by 0.3% and 1.8%, respectively. Class B vacancy for Midtown fell by 0.2% while Midtown South’s vacancy grew by 0.3% from the previous quarter.
23.9% 22.4% 21.4%
Class A Vacancy Rates by Submarket Source: Cushman & Wakefield 23.7% 21.9% 20.8%
Class A Asking Rents Grow Modestly Overall asking rents fell modestly across all three Manhattan submarkets in the third quarter. Lower Manhattan’s overall asking rent fell to $55.86 per sq. ft., a 0.7% reduction from the previous quarter. Midtown and Midtown South’s overall asking rents decreased slightly, Lower Manhattan Real Estate Market Report | Q3 2022
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the quarter and fell 1.8% over the year to $51.24. This is the lowest Class B asking rent since 2016. Direct asking rents fell slightly by 0.44% to $59.38 per sq. ft. Sublet asking rents remained flat, at $49.80. Overall and Class A office rents in Midtown both saw yearover-year improvements, despite declining modestly from the second quarter. Class A rents in Midtown grew a healthy 2.4% over the third quarter of last year, likely driven by law firm Davis, Polk & Wardell’s 700,947 sq. ft. lease at 450 Lexington Ave., the largest lease signed so far in Manhattan this year. Likewise, overall asking rents in Midtown South grew 2.5% year-overyear despite a similarly modest quarter-over-quarter decrease. Class A asking rents in Midtown South, however, declined both year-over-year and quarter-over-quarter.
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8,625 sq. ft. retail property at 144 Fulton Street for $44 million. The firm acquired the property for $25 million in 2015. Fully occupied by Chick-Fil-A, the lease lasts until January 2038. 111 Wall Street: Oaktree Capital Management initiated foreclosure proceedings on 111 Wall St (90,000 sq. ft.), purchased by David Werner, Nightingale Group, and Intervest Capital Partners in 2020 for $175 million and the fee interest for an additional $220 million in 2021. The property faces a reported $500 million in debt from various lenders.
Overall Asking Rents by Submarket Source: Cushman & Wakefield
$76.70
Third Quarter 2023 Property Sales
$75.69
Mixed-Use Building Sales 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 Oct. 2021. 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 an extra story and rooftop mezzanine.
$55.86
Class A Asking Rents by Submarket Source: Cushman & Wakefield
Recent Pending Sales Announcements 80 Pine Street: Plans have been approved to convert the five-story former warehouse at 107 South St. to a mixeduse 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. 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 Aareal Bank in a deed-inlieu-of-foreclosure transfer. Aareal Bank is seeking to sell the outstanding debt on the building for a TBD amount.
$91.21 $83.54
$59.69
144 Fulton Street: Crown Acquisitions has listed the 5-story, Lower Manhattan Real Estate Market Report | Q3 2022
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Lower Manhattan Entertainment Options Expand as the Ronald O. Perelman Performing Arts Center (PAC NYC) Opens With the opening of PAC NYC, Lower Manhattan has cemented its status as one of New York’s cultural, artistic and architectural centers. The long planned and much anticipated performing arts center at the World Trade Center wrapped up construction in September and has since launched its inaugural programming season. Designed to be a hub for emerging and established artists, the innovative building features three main theater spaces, rehearsal spaces and a public bar and cafe. The 129,000 sq. ft. building is designed to provide artists with maximum flexibility and can host a variety of performance types: intimate theater, contemporary dance, small scale opera, cinema and immersive events as well as seated and standing concerts. The building itself is an architectural gem. PAC NYC’s design stands in stark contrast to the post-modern, spine-like Oculus directly across the street. Far more subtle in its appearance, PAC NYC’s stone and glass facade presents a mosaic of tan lines intersecting and weaving across a grid of eggshell colored tiles–effecting an image of a large-scale mural. At night, the center glows with a warm and welcoming yellow. The venue officially opened on September 17 and has already featured performances from Cynthia Erivo, Tiler Peck, Tariq Trotter, Angélique Kidjo and James Taylor. PAC NYC joins a growing list of first class entertainment venues in Lower Manhattan. The rooftop at Pier 17, which affords city-scape views as well sweeping vistas of Brooklyn Bridge Park and the Statue of Liberty, hosts a
Lower Manhattan Real Estate Market Report | Q2 2022
robust summertime concert series that draws thousands of visitors to the district. Established in 2018, the rooftop venue has featured some of the world’s biggest artists, including Lil Nas X, Billie Eilish, Ringo Starr, the Fugees, Deadmaus and Amy Schumer. Lower Manhattan has also joined the worldwide trend of fully immersive art exhibits. Hall des Lumières, located in the landmark Emigrant Savings Bank at 49 Chambers St., showcases works by renowned modern artists like Gustave Klimt, Marc Chagall and Wassily Kandinksy. Projected over furniture and the walls, visitors not only observe the paintings but feel like they are actually inside them. The 30,000 sq. ft. venue also hosts catered private events, including cocktail receptions and seated dinners. Another immersive art experience is coming to 21 Dey St., the Mercer Labs Museum of Art and Technology. Israeli artist Roy Nachum is designing the exhibit and has worked previously with Ariana Grande, Kanye West, and Rihanna. His work celebrates the intersection of art and technology, and is set to open in November. Lower Manhattan offers an increasingly broad array of entertainment options ranging from sophisticated theater, experimental art exhibitions and live music with some of the world’s most famous artists. Cinema options have also expanded in Lower Manhattan over the last several years as Alamo Drafthouse and IPIC Fulton Market combine the pleasures of eating and drinking with your favorite movies.
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RETAIL Twelve retailers opened in the third quarter of 2023. Threefourths were food and beverage businesses, including: • Delmonico’s Steakhouse, which had been out of commission since the pandemic, reopened at 56 Beaver St.
• AbcV, a Jean-George Vongretchen vegetarian
restaurant, recently opened at the Tin Building, replacing Seeds + Weeds.
• Cobble Fish, a seafood restaurant, opened at Pier 16; • Dim Sum Palace, a Chinese restaurant, opened at 123
William St.
• Club Laissez-Faire, a 180-person venue that calls itself a contemporary iteration of the classic hotel nightclub, opened at 10 Theater Alley. • Poulette Rotisserie Chicken, a chicken concept for dine-in, take out and delivery, opened a new location at 82 Fulton St.
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• TAQ, a new Taco concept, is coming to the former
Lekka Burger space at 81 Warren St.
• Printemps, a luxury French department store, is set to
open at One Wall St. in Spring 2024.
• ZiZi, a bar and tapas restauarnt, will open at 1 Dutch street in the former Maestro Pasta space. • Hummus Kitchen will open at 1 Dutch St. in the former Maestro Pasta space. • 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. • Rent a Fete, a party rental store, at 65 Broadway. • Los Tacos No. 1 at 20 Broad St. • Rocket Club, Math tutoring and entrepreneurship
program at 23 Warren St.
• Mitsuki Japanese Market, which sells Japanese food and beverages, will open on Park Row in November.
• ImmThai, a Thai restaurant, opened at 80 Nassau St. • Interlude Cafe opened at 11 Murray St. • Tsubame, a new Japanese Omakase restaurant,
opened at 11 Park Place.
• Springbone Kitchen opened at Hudson Eats in
Brookfield Place.
• Starbucks opened at 155 Water St., relocating from the former 135 John St. location. • Chopt opened a new location soon at One Liberty Plaza. Four retail stores also opened in the second quarter, including:
• Arcteryx, an outdoor apparel company at Brookfield Place. • Twenty Four New York, a sneaker store, opened at Westfield World Trade Center. • Peachy, a skincare clinic, opened at 120 Broadway. • Fancy Apple, a bike and e-scooter shop, opened at
125 Church St.
Looking forward, eight retailers announced plans in the third quarter to open locations in Lower Manhattan. Among those who announced during the second quarter are: Lower Manhattan Real Estate Market Report | Q3 2022
Frenchman’s Dough at the Tin Building 7
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HOTELS + TOURISM Tourism Continues to Rebound Lower Manhattan welcomed 7.4 million tourists in 2022 as domestic travel returned and most remaining international travel restrictions were lifted. Though still far below 2019’s 14 million tourists, 2022’s tourism number was more than double the visitation seen in 2020. The share of international visitors nearly doubled to 55% from 28% in 2021. Following Latin America’s lead in 2021, the bulk of international traveler origination shifted back to traditional western European markets in 2022. Asian tourism continues to lag behind its 2019 levels.
Hotel Occupancy in Lower Manhattan and New York City Source: CoStar/STR
56.7 million visitors came to New York City in 2022, or 85% of 2019 visitation levels, and more than double the 22.3 million in 2020. Looking forward, international travel is expected to steadily increase, and New York City Tourism + Conventions forecasts that domestic travel will exceed prepandemic levels later in 2023.
Occupancy and Average Daily Room Rate Continue Recovery Lower Manhattan hotel occupancy fell slightly from the second quarter but continued to show year-overyear growth, reflecting increased tourist activity. Hotel occupancy in Lower Manhattan was 9% higher than in the second quarter of 2022 despite dropping 2% from last quarter. Occupancy growth for Lower Manhattan hotels outpaced the citywide average, which rose by 7% yearover-year. In contrast, citywide average daily room rates remained 29% below 2019 levels at $188 per night.
Hotel Average Daily Room Rate (ADR) in Lower Manhattan and New York City Source: CoStar/STR
$300
Lower Manhattan Hotel Average Daily Room Rate
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Lower Manhattan Hotel Development The current hotel inventory in Lower Manhattan stands at 9,087 rooms across 43 hotels. No new hotels opened in the third quarter. One new hotel containing 70 rooms is expected to open later in 2024:
• The Warren Street Hotel, a new boutique hotel operated by Firmdale Hotels, is expected to open later this year at 86 Warren Street. Lower Manhattan Hotel Pipeline Source: Downtown Alliance
Hotel / Address 1
2
The Warren Street Hotel 86 Warren Street
The Ned Hotel at American Stock Exchange
Owner/ Developer
Rooms Open Date
Solil Mgmt/ Firmdale
57
2023
The Warren Street Hotel Yucaipa Companies
174
2023
AC Hotel
Hidrock Realty
230
TBD
Tempo by Hilton
Hidrock Realty
296
TBD
Platt Street Hotel
The Moinian Group
172
TBD
Hotel Indigo
W&L Construction
TBD
2025
123 Greenwich Street
3 4 5
6
112 Liberty Street
140-142 Fulton Street
7 Platt Street
8-12 Maiden Lane
Total Hotels in the Pipeline
5
Total Hotel Rooms in the Pipeline
942
Warren Street Hotel
Lower Manhattan Skyline Lower Manhattan Real Estate Market Report | Q3 2022
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RESIDENTIAL Inventory and Development Lower Manhattan has 34,243 units in 345 residential buildings. There are 5,776 units in 18 buildings under construction or planned for development, with about 87% currently planned as rental units and 22% as condos. In early 2023, construction wrapped one property:
• 1 Park Row: Developed by Circle F Capital, the project recently topped out. It’s a 23-story mixed-use building in Lower Manhattan’s Financial District. 305-foot-tall structure will yield 103,000 square feet with 58 condominium units in one- to three-bedroom layouts, along with 19,000 square feet of office and retail space on the lower levels. This is the last parcel along Park Row left for development after J&R Music and Computer World’s closure in 2014. Later in 2023, one additional residential development is expected to wrap up construction and open, bringing another 58 units onto the market:
• 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: North Carolina-based developer
Grubb Properties plans to build a 50-story building containing 22,000 sq. ft. of ground-floor retail and 400 residential units. 8 Carlisle, which is set to receive tax abatements under the recently expired 421a program, will include a mix of affordable and market-rate rental units. 8 Carlisle is expected to finish construction in 2025; and
• 160 Water Street: Vanbarton Group is currently working
to convert the 24-story, 482,000 sq. ft. office building into a 586-unit market rate rental building. Construction is scheduled for completion by late 2025.
• 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 is planning to convert the 410,000 square foot building into 571 market rate apartments.
retail and up to 460 rental units.
Finally, in June the New York State Supreme Court issued a ruling allowing development work to continue on Howard Hughes’ 399-unit rental building at 250 Water Street following an injunction issued by a lower court in January. An expected completion date has not yet been announced.
Lower Manhattan Residential Pipeline Source: Downtown Alliance
Address
Lease / Building Type
Units
Open Date
1
1 Park Row
Condo New Construction
58
2023
2
7 Platt Street
Rental New Construction
250
TBD
3
8 Carlisle Street
Rental New Construction
400
TBD
4
160 Water Street
Rental Conversion
588
2025
5
250 Water Street
Condo/Rental New Construction
270
TBD
6
161 Maiden Lane
Condo New Construction
80
TBD
7
45 Park Place
Condo New Construction
50
TBD
8
125 Greenwich Street
Condo New Construction
273
TBD
Total
1,969
Condo + Rental Units In Development
• 111 Washington Street: Grubb Properties has closed on an $86 million loan to construct a residential skyscraper. Updated plans specify a 64-story tower with ground floor Lower Manhattan Real Estate Market Report | Q3 2022
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Residential Rental Prices Rise
Median Residential Rental Price
According to residential statistics published by Miller Samuel/Douglas Elliman, the median rent in Lower Manhattan rose by 6% over the previous quarter to $4,768. Median rents are now 19.2% higher than before the pandemic, and listing discounts were largely absent in the third quarter as demand increased (days on the market fell by 19%). Available units were leased on average 8 days faster than in the previous quarter, suggesting that rents may continue to rise amid high demand and tight supply.
Source: Miller Samuel/Douglas Elliman
Manhattan’s overall median rent also rose to a new record high of $4,399, up 2.3% from the previous record setting quarter. Median rents were 24.8% higher than the prepandemic figures. Manhattan’s overall median rent has now surpassed pre-pandemic rates for seven consecutive quarters. Demand and prices appear poised to increase further amid an ongoing supply shortage and competition from would-be homebuyers who have remained in the rental market due to increased interest rates.
130 Liberty Street
The sales market cooled down slightly in the third quarter in Lower Manhattan. The median sales price for co-ops and condos in Lower Manhattan fell to $1.08 million, down 15.3% from the second quarter. Median sales prices were nearly 48% below the record high seen at the end of 2022. With 71 units sold, sales volume in Lower Manhattan lowered significantly over the previous quarter and finished 13.2% below year-over-year. It did, however, finish 47.9% above pre-pandemic levels.
Median Residential Sales Price Source: Miller Samuel/Douglas Elliman
Across Manhattan the median sales price fell only slightly, and remained relatively steady compared to the rest of the year at $1,150,000. Sales volume rose by 22.8% over the quarter, a large uptick considering Q2’s modest sales growth of 3.7%. Q3 sales volume, however, was down 22.7% year-over year as inventory and increased rates have limited new transactions.
$4,768
Median Rent in Lower Manhattan — 47.9% Higher Than Before The Pandemic.
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MAJOR PROJECTS UPDATE World Trade Center The $500 million Perelman Arts Center opened on Thursday, September 14, with performances by Cynthia Erivo, Tiler Peck, Tariq Trotter, Angélique Kidjo and James Taylor. 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 Street. 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 33% 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.
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. 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 Lower Manhattan Real Estate Market Report | Q3 2022
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.
Transportation 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 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 scheduled for completion in Fall 2023. 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 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. 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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Parks and Open Space
Climate Resiliency
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.
Resilience Master Plan 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 twolevel waterfront park that extends the shoreline of the East River by up to 200 feet.
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 with 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.
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 is projected to cost $5 to $7 billion and could be in place by 2035, pending funding and prioritization by regulatory agencies.
PACE University at 15 Beekman Lower Manhattan Real EstateArches Market Report | Q2 2022 The Courtesy of NYC Department of Transportation
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Governors Island New York Climate Exchange 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, University of Oxford, 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 expanded ferry service running every 15 minutes beginning in summer 2024.
New York Climate Exchange
Lower Manhattan Real Estate Market Report | Q2 2022
Courtesy of NYC Department of Transportation Courtesy of NYC Department of Transportation
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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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