INTRODUCTION

Over the past twenty years, the residential population in Lower Manhattan has grown steadily, aided by new construction, office to residential conversion and a growing interest in the neighborhood’s many conveniences. Lower Manhattan has evolved into an increasingly 24-7 downtown, supported by the proliferation of residents and the diversification of retail. Many of the district’s new residents are affluent young professionals who are drawing retailers to fulfill their demand for more dining, entertainment and shopping. This report outlines the neighborhood’s noteworthy responsiveness to this evolving and growing residential population’s interest in expanding the variety of cuisine, grocery options and nightlife offered downtown. Exciting new openings cropping up across downtown point to a healthy retail environment even as the commercial real estate market recalibrates in the wake of Covid-19.

In 2022, the Downtown Alliance partnered with Audience Research & Analysis to survey residents in Lower Manhattan to better understand their retail desires, preferences and spending habits. Through an online survey and series of focus groups we identified areas of demand and ways in which the Covid-19 pandemic has affected consumer practices. The results, presented below, show that Lower Manhattan’s 64,000 residents are active supporters of the neighborhood’s retailers and restaurants and are actively interested in broader options in a few categories: culinary diversity, grocery shopping, one-stop retail shopping, nightlife and entertainment. Since this survey was completed, a number of these desires have been met or projects promising to meet this new demand have been announced. Last year 150 new businesses opened in Lower Manhattan as entrepreneurs have responded to the pent up demand of neighborhood residents.

Exciting new destinations for dining, including the Tin Building, have added to the rich variety of cuisine types to Lower Manhattan. In January of 2023, a Whole Foods opened at the base of newly converted residential property, One Wall Street. The same property will add a luxury French department store, Printemps, in 2024. Arts and entertainment options downtown will expand dramatically with the planned opening of the Ronald O. Perelman Performing Arts Center at the World Trade Center

In addition to the newly opened immersive visual arts experiences like Halls de Lumieres. Century 21, which closed in 2020, is reopening its Lower Manhattan flagship store in the spring of 2023. All of these openings respond directly to the residents’ demands identified by ARA through their survey.

Lower Manhattan is continuing to grow into a residential neighborhood of choice. There are currently nearly 5,700 new units in 22 buildings either under construction or planned. Projected growth as a result of rezonings and planned infrastructure projects in surrounding neighborhoods will also further the neighborhood’s appeal for retailers. This growing and affluent residential population represents a unique opportunity for entrepreneurs.