Lower Manhattan’s Resurgence Post-Pandemic
It’s been 25 years since 9/11, and five since the peak of the pandemic, yet Lower Manhattan is finding its footing once again, albeit with emerging tensions.
The District has seen a rise in office leases, reaching levels not seen since 2019, according to a report from the Downtown Alliance. For the first time, the population has surpassed 70,000. Additionally, the trend of converting aging office spaces into apartments seems to be picking up speed, swallowing one building after another.
Initially slow in the third quarter, the leasing activity surged, with over 1.57 million square feet of new transactions recorded in the fourth quarter. This brought the total area leased in 2025 to 4.75 million square feet in the lower Chambers Street area, doubling the previous year’s figures.
Yet, not every development is captured in the Business Improvement District’s report. A potential game-changer could be an upcoming lease that would anchor American Express at Two World Trade Center, a project long anticipated by Larry Silverstein, which would finalize the trade center’s vision of four skyscrapers.
“It’s moving forward,” a source mentioned to Realty Check. Though, interestingly, after minimal agreements, there’s been silence until everything is finalized.
We’ve heard similar points before, but according to our source, “this time it feels more solid.”
Key insights from the Alliance survey include:
- The office vacancy rate dipped to 22.2%, a decrease of 2.1% from the end of 2024, boosted by three significant deals. Notable transactions include Jane Street Capital’s renewal at 250 Vesey Street, BNY Mellon’s lease of 192,915 square feet at One World Trade Center, and Moody’s move into 457,730 square feet at 200 Liberty Street.
- New tenants leased 592,000 square feet downtown, a fivefold increase over 2024. Important relocations include the Office on Aging at 14 Wall Street, Scale AI’s move to 1 WTC, Arch Lab at 199 Water Street, and Atlantic Pictures at 100 Church Street.
- The population has exceeded 70,000, marking an increase of 14,000 since 2010. As more older office buildings are repurposed — including 1,500 apartments at 110 Wall Street and nearly 800 at 222 Broadway — this number is set to rise significantly.
Interestingly, the Alliance notes that 821,000 square feet of office space has been removed from the market due to ongoing conversions.
On the other hand, several large office blocks remain available, such as 60 Wall Street, which is offering all 1.6 million square feet for sale.
In a curious turn, the MTA is auctioning off 350,000 square feet of air rights above the Fulton Center transit hub, which faces zoning restrictions.
Hotel occupancy has hit a record 90%, boasting 41 hotels and approximately 8,000 rooms.
The offices at 1185 Sixth Ave., managed by SL Green, are buzzing with activity, as new establishments like Carnegie Diner and Joe and the Juice have recently opened their doors. The building currently boasts a 91% lease rate with four new leases totaling around 110,000 square feet.
The standout deal involved patent litigation firm Groombridge, Wu, Bowman & Stone, which secured around 43,000 square feet on the 37th floor and part of the 36th. JLL’s Lisa Keel and Andrew Coe handled the tenant representation, while Newmark’s team, including Brian Waterman, represented SL Green.
Additionally, East West Bank has become the latest tenant at 345 Park Avenue in the Rudin building, expanding its Manhattan headquarters across 38,000 square feet after consolidating operations from 485 and 535 Madison Avenue.
