Matthew McGovern
Director, GRS | Corteq
(646) 760-0851
[email protected]
There are few places in the United States that have dealt with more challenges than New York City’s Lower Manhattan, between 9/11 and the recession.
But things are definitely changing.
One World Trade Center is now a reality, and the city’s tallest building. The major office and retail mixed-use development, which takes up 16 acres is transforming the neighborhood, which is arguably the financial center of the world.
According to Colliers International, Lower Manhattan leasing activity has decreased recently, but that doesn’t mean the neighborhood hasn’t changed significantly, and the downturn is likely due to strong year-on-year comparisons.
Despite that, Lower Manhattan is a place where people can live work and play and is being pumped up for that reason.
The lease-signing by Conde Nast at One World Trade Center was a game changer. Now that one of the major media outlets that leased space in Midtown has traveled Downton, it means more employees probably want to be close to work and other amenities.
This is why, in the retail world, for example, there are lot of major leases that have been signed. Lower Manhattan seems poised to become a restaurant mecca soon, if it hasn’t been already, with the rise of Shake Shack and other eateries.
There is no reason to think that the area won’t thrive with the addition of several multi-use projects coming online that are on the table.
People are going to want to live and work in the same area. And now a subway commute might be more inconvenient for a schlep to the store. It’s the nature of tenants’ behaviors to want to exist by conveniences.
As long as there are more eateries and activities to do something other than go into an office, that submarket of Manhattan will possibly be one of the locales to watch.