DOWNTOWN MANHATTAN OFFICE SPACE

The Lower Manhattan Commercial Real Estate Market

Downtown is where New York City began in the 17th century. From the 1620s to the 1920s--300 years!--Downtown was the "central business district" of the city, where companies of all kinds kept their headquarters and the best stores, hotels, and restaurants could be found.

In the 1920s, many companies moved their New York City office space to Midtown. The expansion of the subways and the construction of a new Grand Central Terminal made the new streets and buildings of Midtown an attractive alternative to the tangled streets and older buildings of Downtown Manhattan.

The press began to talk about how Downtown Manhattan was dying. Well, ever since the 1920s the press has been talking about a dying Downtown, and not only has it not happened, it never will happen. Downtown Manhattan is remarkably resilient, and has adapted to change in such a way that it remains an extremely desirable place in which to do business.

Downtown Manhattan Featured Properties

Downtown Office Space
2,000 SF
$5,833
Trinity Place
World Trade Center

Office Space
1,745 SF
$4,362
William Street
Financial District

Office/Law Firm Space
2,730 SF
$7,962
Broadway
City Hall

Office Space
598 Square Feet
$1,843.83
Broadway
City Hall

Office/Law Firm Space
2,460 Square Feet
$7,585
Broadway
City Hall

Office Space
1,812 SF
$4,983.00
Worth Street
City Hall

Office Space
2,214 SF
$6457.50
Worth Street
City Hall/Insurance District

Law Firm Space
1,695 SF
$4661
Broadway
City Hall/Insurance District

Downtown Office Sublet
2,380 SF
$6,743
Wall Street
Financial District

Full Floor Office Suite
2,570 SF
$7,924
Wall Street
Financial District

We Can Find You Reasonably Priced New York City Office Space in the Best Class A Properties

Downtown possesses an impressive 78 Class A office properties, with a 4.9% vacancy rate and an average rent of $53.79 per square foot. These Class A properties house some of the biggest and most important financial services operations in the world. The type and quality of Downtown's Class A properties can be seen along Water Street (where some of the largest office buildings in the world are located) and at the World Financial Center at Battery Park City.

Once, Downtown Manhattan was the only place in the world with a dense cluster of tall office buildings. It looked different from any other place in history, and defined New York--and America--to the world. In 1899, the Park Row Building, now a combination of office rentals and apartments, was the world's tallest office building. In 1908 the title went to the Singer Building, which was later demolished to make way for One Liberty Plaza. In 1913 the Woolworth Building took the title, and held it for 16 years until 40 Wall Street went up. In the early 1970s, the twin towers of the World Trade Center briefly held the title, so that Lower Manhattan can boast of having had the world's tallest office building on five separate occasions.

Lower Manhattan has 138 Class B office properties, with a 10.2% vacancy rate and an average per-square-foot rent of $47.68. There is a 5.3% vacancy rate among Downtown's Class C office properties, where the average per-square-foot rent is $44.83.

Rent in a Newly Diverse, 24/7 District

Much of the Class B and Class C office space for rent in the Downtown area is to be found in the classic early skyscrapers of New York. Many of them have protected landmark status, and cannot be torn down. Since the financial services companies that dominate the Downtown market need Class A space to serve their high-tech needs, much of the older commercial office space has been converted to residences. This serves to make the area more attractive than it would otherwise be. More residences means more nightlife, restaurants, shopping, and other amenities.

Another major change in the Downtown area is that the lofts of Tribeca, Soho, and Noho are very desirable office rentals for the creative industries in the arts, fashion, and design. Tribeca is in many respects the single most fashionable neighborhood in Manhattan, and is adjacent to Downtown's City Hall and World Trade Center districts.

See How Downtown Is Getting Better and Better

In the aftermath of the World Trade Center tragedy, major public-private efforts have been directed to improving amenities and transportation in the Downtown area, from new waterfront parks to a major new transit hub at Fulton Street, not to mention the construction of major new Class A properties such as 7 World Trade Center and the new Goldman Sachs headquarters.

Lately, Lower Manhattan is not just for banks and financial and law firms anymore. Many other businesses are taking advantage of outstanding deals in New York office rentals. Lower Manhattan is, in fact, getting better and better.