Lower Manhattan’s real estate market saw an upswing in the second quarter of 2021.
The Alliance for Downtown New York recently released its Lower Manhattan Real Estate Market Report, Q2 2021. According to its findings, Lower Manhattan’s residential market saw a demand for residential units near office buildings drove sales and median rents to pre-pandemic levels during this time period.
The report found that median rents in Lower Manhattan saw a 24% increase to $3,722. Listing discounts were more absent during the second quarter, shifting from the previous quarter where the listing discount was nearly 6%. With many people expecting to be called back to the office, the demand for residential units near office buildings increased.
“Recoveries always take time and what we’re seeing now in Lower Manhattan are the slow and steady steps toward a return,” said Jessica Lappin, President of the Alliance for Downtown New York. “Incrementally, we’re seeing an uptick in activity, and we remain hopeful that that will continue to grow.”
On the retail front, the report found that 40 new businesses have opened their doors so far, putting retail openings in the second quarter of this year were on pace with the rate in early 2019. Some new businesses that came to be in Lower Manhattan that quarter were Momofuku’s Ssäm Bar, Andrew Carmellini’s Italian chophouse Carne Mare, casual burger and ice cream spot Mister Dips, a fitness center, and two barbershops.
Commercial real estate is also slowly starting to trend upward in Lower Manhattan. A total of 591,000 square feet in office leasing took place in the second quarter, a 32% increase compared to the first quarter and the highest quarterly total since the pandemic began. However, the rate of office leasing is still 49% lower than the five-year quarterly leasing average — in Midtown and Midtown South, leasing activity was very similar. Despite the vacancies remaining high, rents have remained relatively stable.
Click here to read the full report.
