q3 2019 report - downtownny...the walt disney company will relocate from the upper west side to...

ALLIANCE FOR DOWNTOWN NEW YORKQ3 2019LOWER MANHATTAN REAL ESTATE MARKET REVIEW

Lower Manhattan Real Estate Market Overview| Q3 2019

MAJOR PROJECTS UPDATERETAIL TOURISM / HOSPITALITY RESIDENTIAL

Deals for spaces less than 100,000 sq. ft. in Lower Manhattan in the third quarter accounted for approximately 70% of leasing activity. Small-lease deals (less than 25,000 sq. ft.) represented 30% of all new activity. Large deals (100,000+ sq. ft.) at 3 World Trade Center and 55 Water Street were among the top three leases signed, but only accounted for 30% of leasing activity. Activity among TAMI tenants, retail trade and fl exible space providers continued to diversify the district beyond fi nancial services and government.

Strong leasing momentum in Lower Manhattan continued into the third quarter with 1.81 million sq. ft. of new offi ce deals inked. Bolstered by relocations into the market, leasing activity was 38% above the fi ve-year quarterly average. With 5.61 million sq. ft. leased so far this year, this is the highest year-to-date leasing total since 2000, according to CBRE. Leasing during the past three quarters has already surpassed 2018’s year-end total.

Relocations represented 37% of quarterly leasing activity in Lower Manhattan. Of those relocations, more than half were TAMI (Technology, Advertising, Media and Information) tenants. The two largest relocations were from Midtown, while the remaining will migrate from Midtown South as that market sees record-setting rents and lack of quality space.

Midtown Manhattan saw below-average leasing with activity 32% behind the fi ve-year quarterly average — the third consecutive quarter in which the submarket trailed this benchmark. In addition to slow leasing, 12 blocks of space larger than 100,000 sq. ft. became available in the Midtown market. Activity is expected to pick up as several large leases for nearly 3 million sq. ft. are anticipated to close in the coming quarters. Midtown South surged to its highest quarterly total on record, eclipsing the fi ve-year quarterly average by 81%. The resurgence was driven by Google’s 1.3 million sq. ft. lease at 550 Washington Street, which will be part of its $1 billion new Hudson Square campus.

Strong Leasing Continues at World Trade CenterThe World Trade Center campus continues to drive Lower Manhattan’s leasing success. The new, high-quality offi ce space is particularly attractive to growing companies that are either priced out of other submarkets or in need of modern infrastructure. Three of the top fi ve leases signed during the third quarter were at 3 and 4 World Trade Center (WTC), while another fi ve were signed across One, 3 and 7 WTC.

Lower Manhattan Year to Date Leasing Activity, 2015 - 2019Source: CBRE

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COMMERCIAL OFFICE

highest year-to-date leasingtotal since 2000

5.61 Million Square Feet

Small and Mid-Size Leasing Drives Strong Third Quarter in Lower Manhattan


MAJOR PROJECTS UPDATE COMMERCIAL OFFICE RETAIL TOURISM / HOSPITALITY RESIDENTIAL

Tenant NameLocation

SF Leased Transaction Type

Sector

1 Uber3 World Trade Center

307,970Relocation TAMI, Technology

2 District Council 3755 Water Street

130,449Moving Within LM

Nonprofit

3Kelly Drye & Warren3 World Trade Center

103,082Relocation Prof. Services, Law

4 Spotify4 World Trade Center

85,666Expansion TAMI, Technology

5 Knotel195 Broadway

83,732New LM Location

Prof. Services, Flexible Office Space Provider

6 Moda Operandi195 Broadway

83,685Relocation Other, Retail Trade

7 Moët Hennessy7 World Trade Center

83,486Relocation

Other, Manufacturing

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NYC Dept. of Citywide Admin. Services 55 Water Street


Government

9 WeWork83 Maiden Lane



10 WeWork255 Greenwich Street



11 Better.com3 World Trade Center

44,931Expansion FIRE

12 Five Rings Capital225 Liberty Street


FIRE

13

US Equal Opportunity Commission33 Whitehall Street

39,721Renewal Government

14CartaOne World Trade Center

36,099Relocation TAMI, Technology

15 Giant Spoon44 Wall Street

33,318Renewal & Expansion

TAMI, Advertising

Lower Manhattan Top Leases, Q3 2019Source: Downtown Alliance, CBRE, JLL, CoStar, Colliers International

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• Uber signed a 307,970 sq. ft. deal and law firm Kelly Drye & Warren signed a 103,082 sq. ft. lease at 3 WTC, both relocating from Midtown. Also at 3 WTC, Better.com expanded by another 44,931 sq. ft. after just signing a full-floor lease in the first quarter of 2019. Harper + Scott, a marketing agency specializing in promotional/premium goods, signed a 17,456-square-foot deal to relocate to 3 WTC from Midtown South. The office tower is nearly 60% leased.

• Spotify expanded by 85,666 sq. ft. at 4 WTC, subletting space from the Port Authority. Spotify now occupies nearly 567,000 sq. ft. and has exceeded space utilized by the Port Authority.

• At 7 WTC, Moët Hennessy signed a 83,486-square-foot relocation deal. They will join another spirits company, Diageo, that signed a similar-size lease at 3 WTC last year. AccuWeather also announced a 13,341-square-foot move to 7 WTC.

• Lastly, Carta, a fintech company, signed a 36,099-square-foot deal to relocate from Midtown South to One WTC.

Upstart Fashion Brands Try On Lower ManhattanUntil recently, many wouldn’t have considered Lower Manhattan a destination of choice for large retail companies and fashion brands. But, in recent years, industry leaders such as Hugo Boss, J.Crew, Nike, Hudson’s Bay Company and SMCP (the Paris-based parent company of fashion brands Sandro and Maje) have all relocated their corporate offices to the neighborhood. Condé Nast, Revlon and other consumer and media brands have also added to the Financial District’s changing character.

Upstart and emerging fashion companies are also choosing Lower Manhattan. According to JLL, 18% of new leasing this quarter went to retail trade and apparel companies. Moda Operandi, an e-commerce luxury fashion company, signed a 83,685-square-foot deal to relocate from Hudson Square to 195 Broadway. The company finds itself in fashionable company, as Gucci also recently relocated its offices to 195 Broadway. Tommy John, a men’s underwear company, expanded at 100 Broadway with a 17,592-square-foot lease — they now occupy 35,360 sq. ft. in the building. Also located at 100 Broadway are two emerging fashion companies — Tibi and MM.LaFleur. Faherty Brand, a casual fashion line, also made a 16,500 sq. ft. move to 80 Broad Street from Tribeca.


Class A Offi ce Asking Rents by Submarket Q1 2018 - Q3 2019Source: Cushman & Wakefi eld

Overall Offi ce Asking Rents by Submarket Q1 2018 - Q3 2019Source: Cushman & Wakefi eld

MAJOR PROJECTS UPDATECOMMERCIAL OFFICE RETAIL TOURISM / HOSPITALITY RESIDENTIAL

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Flexible Space Providers Continue to GrowFlexible space providers continued to rank among Lower Manhattan’s strongest dealmakers in the third quarter, with three transactions reaching nearly 192,000 total sq. ft. More than 820,000 sq. ft. have been leased so far this year by a variety of fl exible space providers.

• Knotel signed an 83,732-square-foot expansion at 195 Broadway. They now have 10 locations in Lower Manhattan.

• WeWork signed two mid-size deals this quarter, including 56,000 sq. ft. at 83 Maiden Lane and 51,953 sq. ft. at 255 Greenwich Street. There are now 14 WeWork locations across 1.3 million sq. ft. in Lower Manhattan— amounting to 1.5% of the total Downtown market. Lower Manhattan is home to the fewest WeWork locations among the Manhattan submarkets. WeWork has over 3.3 million sq. ft. across 32 locations in Midtown and 2.8 million sq. ft. across 43 locations in Midtown South.

Lower Manhattan Maintains Pricing AdvantageAccording to Cushman & Wakefi eld, Lower Manhattan’s overall average asking rent decreased modestly by 1.3% to $62.87 per sq. ft.. Class A asking rent remained near historical highs at $66.70 per sq. ft., dropping only slightly from the previous quarter as higher-priced space was leased at 3 World Trade Center. The average Class B asking rent reached an all-time high at $59.03 per sq. ft., growing 6.6% over the past year - a result of higher-priced, 200,000-sq. ft. blocks entering the market at 110 William Street and One Broadway.

In Midtown, overall average asking rents were $76.41, roughly consistent from last quarter. Class A average asking rents were $82.22. Midtown South’s overall asking rents at $81.67 per sq. ft. grew nearly 7% year-over-year, though down slightly from last quarter’s record pricing. This is the fi fth consecutive quarter where overall rents in Midtown South have exceeded rents in Midtown. Midtown South’s Class A direct-average asking rent (defi ned as Class A available offi ce space not priced as a sublease) reached an astounding $108.47 — a $7.23 per sq. ft. increase — due to new availabilities in West Chelsea and around Madison Square Park.

Lower Manhattan continues to maintain a substantial pricing advantage compared to other Manhattan submarkets, most notably to Midtown South. Lower Manhattan’s average asking rents are $32 per sq. ft. below Midtown South’s average for Class A offi ce space and nearly $19 below for overall offi ce

$32 Avg. Class A Office Asking Rent

Lower Manhattan vs. Midtown SouthOffi ce Asking Rent Price Differential

Avg. Overall Office Asking Rent$19

$62.87 overall averageasking rent in

Lower Manahttan


ManhattanManhattan

Not all dynamics in real estate represent a zero sum game. Sometimes there are two winners. As Google and Disney plan major, exciting expansions in Hudson Square and remake the face of that subdistrict, 13 tenants, totaling nearly 605,000 sq. ft., have relocated from Hudson Square to Lower Manhattan, including Moda Operandi, Carta, Rafael Vinoly and Cision PR Newswire. Tenants like those are increasingly taking advantage of Lower Manhattan’s more affordable offi ce rents and abundance of modern space. Nine of those 13 tenants relocated to the World Trade Center submarket within Lower Manhattan, accounting for 66% of the relocated sq. ft. total.

Google’s announced $1 billion, 1.7 million square-foot campus in Hudson Square will involve the redevelopment of the St. John’s Terminal Building at 550 Washington Street, as well as lease agreements at 315 and 345 Hudson Street. The Walt Disney Company will relocate from the Upper West Side to build a 1.3 million-square-foot offi ce tower at 4 Hudson Square. These two developments have sent a cohort of businesses looking southwards to Lower Manhattan for advantageous rents and state-of-the-art buildings. Lower Manhattan’s price advantage is a magnetic pull for tenants. According to Cushman & Wakefi eld, average Class A asking rents in Hudson Square now stand at $121.61, while overall rents are $98.31. Across the Downtown market, average Class A asking rents now stand at $66.70, while overall rents are $62.87. Those pricing differentials can on average range between $25 and $55 per sq. ft.


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space — both record differentials. The difference between direct Class A offi ce space (not subleased) is even larger, as Lower Manhattan space is an astounding $40 per sq. ft. (on average) cheaper than Midtown South. The expansion of the technology sector in Midtown South has left that market with limited availabilities and record-setting pricing. While Class A rents in Lower Manhattan have remained at their highest levels in the submarket’s history, many tech tenants in Midtown South that are looking to expand have taken note of the district’s sizable rent differential.

Average Offi ce Vacancy RateAccording to Cushman & Wakefi eld, Lower Manhattan’s vacancy rate stood at 11.1% in the third quarter, down from 12% one year ago. The decrease can be attributed to sizeable leasing transactions, particularly at the World Trade Center, as well as limited new availabilities. Across offi ce class types in Lower Manhattan, Class A vacancy decreased signifi cantly from 13.8% to 10.9% year over year. Class B and C offi ce vacancy increased to 12.4% and 8.9%, respectively.

Meanwhile, Midtown’s overall vacancy rate increased to 11.1% as six large blocks became available. Midtown South’s vacancy decreased to 8.1%, as that market set its highest quarterly leasing activity on record.

Success Breeds Success: How Hudson Square’s Evolution Helps Fuel Lower Manhattan’s Leasing

Rendering of Google Hudson Square at 550 Washington Street by COOKFOX Architects

11.1% overall

vacancy rate inLower Manahttan


Third Quarter Property SalesTwo property sales occurred during the third quarter.

A 102,000-square-foot, 17-fl oor, 499-bed (225-unit) student housing building at 55 John Street was sold by Tessler Developments to Education Housing Services (EHS) for $101 million. EHS, which typically manages student housing on behalf of landlords, had been the sublandlord at the building prior to buying it outright.

The sale of 7 Hanover Square from Guardian Life Insurance Company to GFP Real Estate, the Northwind Group and TPG Real Estate Partners offi cially closed. The deal was announced in January 2019. The 846,415-square-foot offi ce building was purchased for $308 million. Guardian Life, which has been a tenant in the property since 1998, is relocating to Hudson Yards.

• The building is now undergoing a $250 million modernization and renovation. The new owners are turning the building into two separate portions with addresses at 50 Water Street (building’s base) and 100 Pearl Street (top fl oors). In addition, plans are also in the works to add retail at the base, including a possible food hall.

• The owners have already leased nearly 527,000 sq. ft. of offi ce space at 50 Water Street to NYC Health + Hospitals, the largest deal recorded in Q1 2019.

Recent pending sales announcements:

• 195 Broadway - JPMorgan’s asset management arm is in contract to sell its 95% stake in 195 Broadway for $775 million to a partnership between Korea Investment & Securities, Samsung and L&L Holdings. L&L already owned a 5% stake. The 29-story, 973,000-square-foot offi ce building has Gucci, HarperCollins Publishers, Omnicom and Nobu as tenants. The property has undergone a $100 million renovation in recent years. L&L bought the building in 2005 for $266 million.

• 111 Wall Street - Nightingale Group and Wafra Capital Partners are acquiring the leasehold interest of 111 Wall Street for approximately $570 million. The 24-story, 1.1 million-square-foot offi ce tower is being sold by Omnispective Management Corp. and Zurich Insurance Group. Citigroup plans to move all remaining employees at 111 Wall to its headquarters at 388 Greenwich Street in December 2019. Once vacant, the new owners will undertake a renovation of the property.

• One Whitehall Street - The 21-story, 387,390-square-foot offi ce building is in contract for roughly $182 million. Rudin Management Company is selling to the Chetrit Group.

• 175 Water Street - According to published reports, Metro Loft is in contract to buy AIG’s 31-story, 684,000 SF offi ce tower for $270 million. Plans are to convert the offi ce building into residential once AIG’s lease expires in 2021. Metro Loft has converted more than 3 million sq. ft. across 10 Financial District offi ce buildings to residential rentals, including most recently 20 Broad and 180 Water.


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7 Hanover Square Sold 55 John Street Sold

Rendering of 50 Water/100 Pearl Street by VisualHouse


RETAIL TOURISM / HOSPITALITY RESIDENTIAL

New Openings and AnnouncementsIn the Seaport District, Bar Wayō, a Japanese bar and restaurant by David Chang, and Malibu Farm, a healthy California-based eatery, opened on Pier 17. McNally Jackson Books and Alexis Bittar opened on Fulton Street. A new restaurant by Andrew Carmellini is expected to open later this year on Pier 17.

At Brookfi eld Place, M.M.LaFleur, a women’s boutique, and Pink, a men’s shirt store, opened. Convene will open its 73,000 sq. ft. meeting and events space in early November; For Five Cafe will also open within the space. Later this year, Clean Market, a wellness-oriented store, and Sant Ambroeus, the chic Italian restaurant, will open. Shakespeare & Co., an independent bookstore, anticipates an early 2020 opening.

Westfi eld World Trade Center welcomed new retailers to the complex, including Brooklyn Bleu and Michele Lopriore. More food options are on the horizon with Just Baked, Doughnut Plant and Taco Dumbo in the near future.

Thirty-six new retailers opened in Lower Manhattan in the third quarter, including:

• Chikarashi Isso, a Japanese restaurant, at 38 Rector Street;

• Gnoccheria, an Italian restaurant and bar, at 100 Broad Street;

• Revolution Cantina at 53 Stone Street;

• fast casual eateries Cava and &Pizza at 63 Wall Street, Los Tacos No. 1 at 136 Church Street and Blue Bottle Coffee soon at 20 Broad Street;

• Blo Blow Dry Bar at 105 Nassau Street and City MD at 20 Broad Street.

RETAIL MARKET

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MAJOR PROJECTS UPDATE

Malibu Farm, a healthy California-based eatery, opened on Pier 17 in the Seaport District.

Bar Wayō, a Japanese bar and restaurant by David Chang, opened on Pier 17 in the Seaport District.

Courtesy of Chikarashi Isso

COMMERCIAL OFFICE

Photo by Liz Clayman for Malibu Farm

Chikarashi Isso, a Japanese restaurant, opened at 38 Rector Street.

Photo by Gary He for Eater


TOURISM / HOSPITALITY MARKET

Record Year for TourismLower Manhattan continues to be a growing destination for tourists. In 2018, approximately 14.6 million tourists visited Lower Manhattan, up 7% from 20171. The proportion of international visitors coming to the neighborhood rose from 50% in 2017 to 53% in 2018. As a whole, New York City welcomed a record 65.2 million tourists in 2018, a 3.8% increase over 20172. This is the ninth straight year that the city’s tourism numbers have increased. Citywide tourism is expected to grow to at least 67 million visitors in 2019.

Hotels Check-in to Lower ManhattanAt the end of the third quarter, there were 7,945 rooms in 37 hotels throughout Lower Manhattan. More than 1,700 hotel rooms in 15 hotels are currently in the development pipeline. In 2019, hotel-room inventory in Lower Manhattan is expected to grow by nearly 8% over last year. While no hotels opened in the third quarter, the hotel inventory in Lower Manhattan will reach 8,265 rooms by year-end 2019. Those scheduled to open include:

• Courtyard by Marriott at 215 Pearl Street (lower floors), 200 rooms; and

• Marriott Residence Inn at 215 Pearl Street (upper floors), 120 rooms.

Additionally, the former Club Quarters, Wall Street at 289 William Street was rebranded the Radisson Wall Street. Firmdale Hotels, which manages the Whitby and Crosby Street Hotels, was announced as the operator for the proposed 70-room boutique hotel at 86 Warren Street.

Occupancy and Average Daily Room Rate The third quarter’s average occupancy was 88.5%, up by one percentage point year over year. Lower Manhattan’s hotel occupancy rate was slightly below citywide trends at 90.1%. Lower Manhattan’s average daily room rate (ADR) in the third quarter of 2019 was $261.77, on par with last year. New York City’s ADR, about $30 more than Lower Manhattan’s ADR, decreased slightly year over year to $2913.

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RETAIL TOURISM / HOSPITALITY RESIDENTIAL MAJOR PROJECTS UPDATE COMMERCIAL OFFICE

1 Source of Lower Manhattan tourism estimates: Audience Research & Analysis2 Source of New York City tourism figures: NYC & Company3 Source of preliminary New York City hotel figures: NYC & Company

Lower Manhattan Hotel Development PipelineSource: Downtown Alliance

Hotel / Address Owner/ Developer

Rooms Floors Open Date

1 Residence Inn 215 Pearl Street Lam Group

120 (upper floors)

40 2019

2Courtyard by Marriott 215 Pearl Street

Lam Group200

(lower floors)

40 2019

3 The Fidi Hotel11 Stone Street

Premier Emerald LLC 143 27 2020

4 Hotel Indigo120 Water Street

Atlas Hospitality 122 31 2020

5Casa Cipriani Battery Maritime Building

Centaur Properties/ Cipriani

41 5 2020

6 Aloft Hotel50 Trinity Place

Fit Investment Group

173 29 2021

7 TBD Hotel88 Wall Street Actium Dev. 181 14 2021

8 TBD Hotel112 Liberty Street

Hidrock Realty 230 30 2021

9 TBD Hotel86 Warren Street Solil Mgmt. 70 11 2021

10 Hotel Indigo8-12 Maiden Lane

10-12 MLane Inc. 190 25 TBD

11 TBD Hotel265 Broadway

RoeCorporation 80 12

(of 42) TBD

12TBD HotelAmerican Stock Exchange Building

Clarion Partners/ GHC Dev.

174 14 TBD

13 TBD Hotel212 Pearl Street Chaon LLC 48 21 TBD

14TBD Hotel140-142 Fulton Street

Hidrock Realty 41 TBD TBD

15 TBD Hotel21 Park Place

Tom Grainger 14 11 TBD

Total Hotels in the Pipeline 15

Total Hotel Rooms in the Pipeline 1,789


RESIDENTIAL MARKET

Inventory and Development Continue to ExpandLower Manhattan has 33,223 units in 336 mixed-use and residential buildings. 108 Chambers Street, a small new construction development by Greystone Development with eight full-floor condo units, opened in the third quarter. There are nearly 2,900 units in 16 buildings under construction or planned for development, with 35% currently planned as rental units and 65% condos. The remaining residential development with plans to open in 2019 include 172 units in three buildings under construction (100% condo). Among them:

• 30 Warren Street - Construction continues on Cape Advisors’ 12-story, 23-unit boutique condo building;

• 33 Park Row - Urban Muse’s 25-story, 31-unit condo tower adjacent to City Hall Park, is finalizing construction; and

• 25 Park Row - The collection of buildings along Park Row, once occupied by J&R Music and Computer World, will soon become a 54-story, 110-unit condo tower. The new residential tower, developed by L&M Development, will include nearly 60,000 sq. ft. of office and retail at the base of the tower.

Residential Rental and Sales MarketAccording to residential statistics published by Miller Samuel/Douglas Elliman, the median rent in Lower Manhattan increased by 5.4% over last year to $4,000, the first time to cross this threshold. Meanwhile, Manhattan’s overall median rent trended up 2.3% year-over-year to $3,525. The increase in median rents was seen across Manhattan due to a weaker sales market. Potential buyers have been staying in the rental market until they are more comfortable.

The median sales price for co-ops and condos fell dramatically to $932,000, down over 13% from last quarter. The sharp decrease in median sales prices was a result of new state tax laws that went into effect in New York City (the lower end of high-end buyers rushed to close during the third quarter because they are more affordability-pressured).

Lower Manhattan’s average price per square foot (PPSF) of $1,239 saw a decrease of 3.1% over the past quarter and a year-over-year decrease of 3.6%. A decrease in high-end sales activity resulted in a decline of the average price and PPSF.

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Lower Manhattan Residential DevelopmentSource: Downtown Alliance

Address Lease / Building Type Units Open

Date

Condo / Rental UnitsUnder Construction TOTAL 2,042

1 33 Park Row CondoNew Construction 31 2019

2 30 Warren Street CondoNew Construction 23 2019

3 25 Park Row CondoNew Construction 110 2019

4 161 Maiden Lane CondoNew Construction 80 2020

5 45 Park Place CondoNew Construction 50 2020

6 69 West Broadway

CondoNew Construction 24 2020

7 77 Greenwich Street

CondoNew Construction 90 2020

8 One Wall Street CondoConversion 566 2020

9130 William Street Condo

New Construction 244 2020

10125 Greenwich Street Condo

New Construction 273 2021

112 Washington Street Rental

Conversion 345 2021

12 45 Broad Street CondoNew Construction 206 2021

Condo / Rental Units In Development TOTAL 795

1 265 Broadway Hotel/CondoNew Construction 37 2021

2 185 Broadway RentalNew Construction 279 2021

3 75-83 Nassau Street

Rental/CondoNew Construction 229 2021

4 3 Platt Street RentalNew Construction 250 TBD

TOTAL UNITS IN THE PIPELINE 2,837

Lower Manhattan Real Estate Market Overview| Q3 2019 9

RETAIL TOURISM / HOSPITALITY RESIDENTIAL MAJOR PROJECTS UPDATECOMMERCIAL OFFICE

Lower Manhattan condo sales are returning to

normal patterns as the luxury legacy contracts

empty.

Lower Manhattan Median Residential Rent, Q1 2015 - Q3 2019Source: Miller Samuel/Douglas Elliman

Lower Manhattan Median Condo Sales Price, Q1 2015 - Q3 2019Source: Miller Samuel/Douglas Elliman

Lower Manhattan Average Price Per Square Foot (PPSF), Q1 2015 - Q3 2019Source: Miller Samuel/Douglas Elliman

Lower Manhattan set a record, with median rents now at $4,000. The increase in median rents was due

to a weaker sales market.

The sharp decrease in median sales price was a weaker sales market as a result of new state tax laws that went into effect in

New York City.

The decrease in average PPSF was due to a weaker sales

market as a result of new state tax laws that went into effect in

New York City.


MAJOR PROJECTS UPDATE World Trade Center The Ronald O. Perelman Performing Arts Center (The Perelman Center)Construction continues at the World Trade Center on the Ronald O. Perelman Center for Performing Arts, known as The Perelman Center. The center has raised 84% of its expected $390 million construction cost. The approximately 110,000-square-foot, cube-shaped building will feature three theaters which can be combined in various seating confi gurations for an array of unique performance spaces. The project anticipates completion in late 2021.

Site 5The Port Authority of New York and New Jersey and the Lower Manhattan Development Corporation (LMDC) recently released an RFP for 5 World Trade Center (aka Site 5 or Albany Plaza). Responses were required by end of September 2019. The parcel can accommodate a 900-foot tower with 1.3 million sq. ft. of commercial or mixed-use development. The square footage could be used for an offi ce tower, or an 800-key hotel, up to 150,000 sq. ft. of convention space and up to 45,000 sq. ft. of retail. The Port Authority and LMDC are also considering residential uses for the site.

3 World Trade Center Transit LobbyThe 3 World Trade Center transit lobby opened in September, which will provide employees of the offi ce tower and the public another access point for PATH, subways and the Westfi eld shopping complex.

76 Trinity PlaceTrinity Real Estate’s 74 Trinity Place, a 26-story, 310,000-square-foot offi ce building, is wrapping up construction. The bottom fi ve fl oors will be for community use, fl oors six through eight will be used for Trinity Church’s offi ces (their move-in date is slated for this spring) and the remaining 17 fl oors will be rentable offi ce space. The existing pedestrian bridge across Trinity Place will eventually reconnect to Trinity Church.

InfrastructureRobert R. Douglass Pedestrian Bridge

The Robert R. Douglass pedestrian bridge (formerly known as the West Thames Street pedestrian bridge), which began construction in 2017, has opened to the public. Spanning over West Street, the 230-foot bridge opens onto a new, privately-owned public plaza at 50 West Street. The structure replaces the Rector Street pedestrian bridge, which will be deconstructed in the near future.

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The Robert R. Douglass pedestrian bridge opened. The bridge spans over West Street and opens onto a new, privately-owned public plaza at 50 West Street. The structure replaces the Rector Street pedestrian bridge.

Photo by World Trade Center

The 3 WTC transit lobby opened, giving workers and the public another access point for PATH, subways and the Westfi eld shopping complex.

Lower Manhattan Real Estate Market Overview| Q3 2019 11


Warren, John and Front Streets ReconstructionReconstruction of Warren Street (from Broadway to West Street) and John Street (from Broadway to William Street) are both scheduled for completion late this fall. Once fi nished, a similar reconstruction will begin on Front Street between Old Slip and John Street. These projects will replace all underground infrastructure, including water mains, sewers, electric, gas and other utilities, as well as construct new streets and curbs.

Water Street Streetscape ProjectIn spring 2019, the New York City Economic Development Corporation will begin work on a long-awaited streetscape and public realm enhancement project along the Water Street corridor. The project will transform two temporary public plazas at Coenties Slip and Whitehall Street into permanent public spaces featuring new landscaping, seating and concessions. The project will also plant street trees, rebuild sidewalks and enhance pedestrian safety from Whitehall Street to Old Slip. The $22.8 million project is expected to take around 24 months to complete.

ResiliencyNYCEDC has approved a team of 18 consultants lead by Arcadis, a Netherlands-based design and engineering fi rm, to develop the Financial District and Seaport Climate Resilience Master Plan. That framework will present locals with options for expanding the shoreline of those neighborhoods as much as 500 feet into the waterway to defend the area against climate change.

Downtown Alliance and Battery Park City Authority Expand Free Wi-FiThe Downtown Alliance and the Battery Park City Authority (BPCA) have together added 1.5 million sq. ft. of free Wi-Fi coverage in Lower Manhattan. This expansion improves coverage in Nelson A. Rockefeller, Teardrop and Robert F. Wagner, Jr. Parks along the Hudson River and brings Battery Park City into the broader #DwtwnAllianceFreeWiFi network, which now spans six million sq. ft. across Lower Manhattan. The next phase of this partnership, scheduled for 2020, will aim to cover large portions of the Battery Park City’s Esplanade. This expansion was made possible by support from BPCA, while support for the existing network is provided by WilmerHale, a leading international law fi rm located at 7 World Trade Center.

Bowling Green Shared StreetThe New York City Department of Transportation announced a pilot pedestrian program to transform Whitehall Street (between Morris and Beaver Streets) near Bowling Green park this fall. The street will be shared by both pedestrians and vehicles and will feature realigned, shorter crosswalks, widened sidewalks, pedestrian protections around the Charging Bull statue and an advisory 5MPH speed limit.

Elizabeth H. Berger PlazaGround was broken for Elizabeth H. Berger Plaza in early September. Named after the late Downtown Alliance president, the public space will combine two existing underutilized concrete plazas into a single, large plaza. The 29,000 sq. ft. park will eliminate an extraneous two-lane exit ramp for the Brooklyn Battery Tunnel and feature a grass lawn, trees and landscaping, seating and paved pathways. Completion is expected in summer 2020.

Alliance for Downtown New York120 Broadway Suite 3340New York, NY 10271212.566.6700DowntownNY.com

Telephone: 212-835-2787 Email: [email protected]

Visit www.downtownny.com/research-statistics for additional publications on the

Lower Manhattan real estate market and economy. Documents include a complete list of

residential and hotel developments, available retail spaces, a summary of leasing incentives

and other research reports, including:

Lower Manhattan Real Estate 2018 Year in Review, an annual real estate report providing a review of

commercial office, retail, residential, hospitality and development projects that happened in 2018.

Lower Manhattan: New York City’s Premier Transit Hub, a report demonstrating the strength of Lower

Manhattan as one NYC’s premier multimodal hubs and needs/opportunities for future improvements.

An Untapped Market: Lower Manhattan’s Young Professionals, a residential survey highlighting Lower

Manhattan as a neighborhood of choice for young professionals in New York City, as well as ways to

capture residents’ robust appetite for dining out and entertainment.

Surging Ahead: Lower Manhattan’s Economic Revival and What It Means For New York, a report on the

major advances in Lower Manhattan’s economy expected over the next five years as a result of post-

September 11 investments and the area’s status as a burgeoning center for some of New York City’s

most valuable, dynamic industries.

The Brain Gain, a report on how the region’s shifting demographics continue to favor the Lower

Manhattan Business District.

If you have questions or require additional information,

please contact [email protected]

https://www.downtownny.com/research-statistics

https://www.downtownny.com/reports/lower-manhattan-real-estate-year-in-review-2018

https://www.downtownny.com/reports/An-Untapped-Market-Lower-Manhattan%E2%80%99s-Young-Professionals

https://www.downtownny.com/reports/surging-ahead-lower-manhattan%E2%80%99s-economic-revival-and-what-it-means-for-new-york

https://www.downtownny.com/reports/the-brain-gain-report-2015-update

https://www.downtownny.com/reports/lower-manhattan-new-york-citys-premier-transit-hub