Leasing Sluggish in Lower Manhattan: Quarter Update

Lower Manhattan’s commercial leasing market saw a decline in activity during the first quarter of 2023, mirroring the same trend seen across Manhattan’s office market, according to a report by the Alliance for Downtown New York. The report also revealed that while office 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 a record high at end of 2022; however they remain 6% higher than pre-pandemic levels. Retailers opened 14 new stores 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 after closing in 2020.