Lower Manhattan’s commercial leasing market experienced a decline in activity during the first quarter of 2023, mirroring the trend seen across Manhattan’s office market, according to a report by the Alliance for Downtown New York. The report also revealed that while vacancies remained high amid sluggish leasing activity, rents grew slightly as more expensive space came onto the market in World Trade submarket. In addition, median residential rents dipped to $4,225 after reaching record highs at end of 2022; however they remain 6% higher than pre-pandemic levels.
Furthermore 14 retailers opened their doors in Lower Manhattan including Whole Foods at One Wall Street and Galerie bar and lounge at Smyth Hotel with Century 21 and Delmonico’s set to reopen following closures due to COVID-19 pandemic. Overall this quarter has been characterized by sluggish leasing activity throughout Lower Manhattan which is reflective of trends seen across entire citywide office markets
