OFFICE RETAIL TOURISM & HOSPITALITY RESIDENTIAL MAJOR PROJECTS UPDATE
ALLIANCE FOR DOWNTOWN NEW YORK LOWER MANHATTAN REAL ESTATE MARKET REPORT Q2 2018
LOWER MANHATTAN MARKS STRONGEST LEASING QUARTER IN SEVEN YEARS AND CELEBRATES THE OPENING OF 3 WORLD TRADE CENTER AND PIER 17
Lower Manhattan’s commercial market had a particularly Positive news abounds on the east side as well with the robust second quarter. Major brand-name tenants closing opening of Pier 17. Now home to ESPN Broadcasting deals in the TAMI (Technology, Advertising, Media and Studios, the pier will host concerts through the fall and Information) and fashion sectors helped make this the most several restaurant openings are expected by year-end. In active quarter in seven years. J.Crew signed the largest deal of additional good news for the Seaport District, the Mr. C the quarter at Brookfield Place where they will be moving their Seaport Hotel opened this summer. This quarter’s strong headquarters to a 325,000-square-foot office from Midtown leasing activity helped mitigate the long expected increase South. in the vacancy rate resulting from 3 World Trade Center’s completion. Finally, private sector employment remains Three World Trade Center’s opening brings the total office at its highest level since September 11, 2001 (242,593 square footage on the World Trade Center campus to 7.8 employees). million square feet. In addition, McKinsey & Company executed the quarter’s second largest deal at 3 World Trade Center and will be relocating their headquarters from Midtown. LOWER MANHATTAN WELCOMES 3 WORLD TRADE CENTER TO THE MARKET
Photo Courtesy of Silverstein Properties. By Joe Woolhead.
Lower Manhattan Real Estate Market Report | Q2 2018 1 OFFICE RETAIL TOURISM & HOSPITALITY RESIDENTIAL MAJOR PROJECTS UPDATE
SECOND QUARTER LEASING BEST SINCE Q2 it surged most dramatically in Lower Manhattan. At mid-year, 2011 leasing in Manhattan overall is up 12 percent as compared to 2017, while Lower Manhattan’s year-to-date activity is off 12 Lower Manhattan leasing more than doubled from the first percent from this time last year. quarter levels. In the second quarter there was 1.9 million square feet of new activity. This represents the best quarter for new BRAND NAME TENANTS TOP LARGEST SECOND activity since the second quarter of 2011 and it also places well QUARTER DEALS above the five-year quarterly average of 1.3 million square feet. The World Trade Center and Brookfield Place continued to top A flurry of large deals boosted this quarter with more than 24 the charts of Lower Manhattan’s largest deals with two deals leases of over 20,000 square feet signed, according to Cushman signed for over 100,000 square feet. J. Crew inked the largest & Wakefield. deal of the quarter and the fifth largest citywide deal after committing to relocate their headquarters from 770 Broadway With this rebound, year-to-date activity now totals about 2.7 to 325,000 square feet in 225 Liberty Street in Brookfield million square feet in Lower Manhattan. While leasing was up Place. J.Crew’s commitment marks the largest relocation since in Midtown and Midtown South quarter-over-quarter as well, Spotify announced its move to 4 World Trade Center in early 2017. J. Crew’s move absorbed Bank of New York Mellon’s sublease space placed on the market after their February 2018 announcement that the bank would be consolidating in 100 Barclay Street. The relocation announcement is the latest in a slew of media and fashion industry firms that have long been 1.9 Million SF headquartered in Midtown and Midtown South moving south of Chambers Street. This move further enriches the Lower Q2 New Leasing Activity Manhattan fashion community which already includes Hudson’s
LOWER MANHATTAN NEW LEASING ACTIVITY BY QUARTER, Q2 2011 - Q2 2018 Source: CBRE
2. Million 2.5 MSF 2. Million
2.2 Million Best Quarter since Q2 2011 2.0 Million 1.9 MSF
1. Million
SF 1. Million
1.2 Million
1.0 Million