Lower Manhattan is New York City’s oldest neighborhood. Often referred to as the “Financial Capital of the World”, it is also the 4 ^th largest business district in the country and one of NYC’s major tourist attractions.

The area is home to nearly 308,000 jobs, 49,000 residents and more than eight million tourists annually. With its vast inventory of quality commercial office buildings and its diverse mix of tenants, Lower Manhattan is an ideal location to locate your business.

Cultural Attractions
Museums and cultural institutions have long been attracted to the area due to its rich history, ease of access and low real estate prices.  Lower Manhattan boasts many iconic attractions and cultural institutions, both historic and modern, including New York's historic City Hall and Civic Center, Museum of the American Indian, the National Sports Museum and an abundance of parks and open spaces.

More than $1 billion is being invested in over 60 different cultural institutions and projects.  By 2011, visitors to Lower Manhattan will experience everything from dance and art to theatre and alternative circus performances.  The centerpiece will be the World Trade Center Memorial and Museum.

• World Trade Center Memorial and Museum
  The eight-acre site will be comprised of a memorial plaza, a visitor and education center, retail development, the PATH Terminal and a Performing Arts Center.

Residential Development
Lower Manhattan is the fastest growing residential community in the City. According to the Alliance for Downtown New York (Lower Manhattan’s Business Improvement District) the community grew by 26% from the previous year, bringing the total population to more than 56,000 residents.

More than 31 residential projects, containing over 6,500 units, are in development or under construction throughout Lower Manhattan. Recently completed residential developments include: the Moinian Group’s 507-unit rental conversion at 95 Wall Street, the 409-unit 20 Pine condo conversion in the former headquarters of Chase Manhattan Bank and the 420-unit, and 31-story 101 Warren Street condominium is expected to be delivered by the end of 2008. Major development currently under construction include: the Robert A.M. Stern designed 80-story condominium and hotel project at 99 Church Street due for completion in 2011 and the 167-unit Setai New York at 40 Broad Street is expecting its first tenants in June 2008

Retail Development
By 2011, more than 800,000 SF of new retail is expected to open in Lower Manhattan.  Already, notable retailers like BMW, Hermes, Hickey Freeman, Papyrus, Sephora, and Thomas Pink have opened stores in the area, and Tiffany & Co. has returned to Lower Manhattan opening a new store at 37 Wall Street. More retailers like Bed, Bath & Beyond, Barnes & Noble, and canali have opened stores in Lower Manhattan,  and Whole Foods is coming soon.  Longstanding NYC restaurants such as Bobby Vans, Haru, Les Halles and PJ Clarkes and have also opened outposts here.

In addition, the City is making a $38 million investment in Fulton Street, helping to transform the area's only river-to-river corridor into an exciting connector between the redeveloped World Trade Center and the South Street Seaport.

Lower Manhattan houses the single largest concentration of transit facilities in the world.  The following transportation amenities are available in the area:

• 14 Subway Lines: 1, 2, 3, A, C, E,  J, M, Z, 4, 5, 6, R, W
• 32 Bus Lines
• PATH Train to New Jersey
• Ferry Service to Queens, Brooklyn, Staten Island, New Jersey and Yonkers
• Heliport Access
• Major highways, tunnels and bridges, including the Brooklyn Battery Tunnel and the Brooklyn and Manhattan Bridges

The City has also committed to the following improvements to Lower Manhattan's transportation infrastructure:

• Chambers Street Elevator Installation (On the 2/3 subway line)
• Fulton Street Transit Center
• South Ferry Subway Terminal
• Wall Street Subway Station Rehabilitation (On the 4/5 subway line) 
• World Financial Center Ferry Terminal
• World Trade Center Transportation Hub

The nearly 100 million SF of commercial office space (approximately 50 million SF is Class A) within Lower Manhattan is roughly equivalent to San Francisco and Philadelphia’s office markets combined.

The newest addition to the Lower Manhattan skyline is 7 World Trade Center, a 1.7 million square foot Class A office building, offering the latest in design and cutting edge technology.  The space is now nearly 70 percent leased to high profile tenants including Moody’s, Darby & Darby and Mansueto Ventures.

An additional ten million square feet of office space will be added by 2012 when the Freedom Tower and World Trade Center Towers 2, 3, 4 and 5 are expected to be complete.

• Average Asking Rents
  At the end of the first quarter 2008, average rents in the area were $50.28 per square foot, and $56.50 per square foot for Class A.  Downtown rents grew by five percent, according to Cushman & Wakefield, but still represent a significant savings versus Midtown rents.  Rents can be reduced further through generous incentive programs available to companies that locate in the area.
• Vacancy Rates
  Vacancy rates for the fourth quarter ended at 7.2 percent overall, and 5.9 percent for Class A. There is nearly 8.0 million square feet of office space currently available, approximately 3.0 million of which is Class A. 

An extensive list of recent lease transactions highlight the appeal of Lower Manhattan. Some of the most recent include:

• Continuum Heallth Care Partners
  Lease for 25,000 SF at 39 Broadway
• Cleary Gottlieb
  Lease for 547,000 at 1 Liberty Plaza
• Kaufman, Borgeest & Ryan
  Lease for 48,000 SF at 120 Broadway
• Niche Media
  Lease for 31,000 SF at 100 Church St.
• State of New York

Lease for 480,000 SF at 60 Broad St.
• SpeechCycle
  Lease for 37,000 SF at 26 Broadway
• The TABB Group 
Lease for 11,000 SF at 115 Broadway

Approximately $34 billion in public and private funds are being invested in the revitalization of Lower Manhattan. The following projects, in construction now, highlight the City's committment to revitalizing the area.

Mass Transit

• PATH Station
  The nearly $3.0 billion station at the World Trade Center site designed by Santiago Calatrava will feature 150-foot-tall wings and a retractable roof. In addition to the PATH, the station will provide access to 14 subway lines and ferry service, as well as pedestrian access to the World Financial Center. The project is currently under construction and is slated for completion by the end of 2009.
• Fulton Transit Center
  This $910 million transit hub designed by Nicholas Grimshaw is currently under construction and is expected to be complete in early 2010. It will link 12 of the 14 Lower Manhattan subway lines that serve more than 300,000 riders daily.
• South Ferry Subway Station
  $450 million has been invested in the new station. It will have multiple station entrances, escalators and elevators. The station will also accommodate ten-car trains.

Street Construction

• West Street Promenade Redesign
  This $189 million project will enhance and revitalize the promenade while easing both pedestrian and vehicular traffic in the area. Improvements include a 9,600 SF landscaped plaza, improved crosswalks & sidewalks, a paved bikeway/walkway, extensive landscaping and a rebuilt entrance to the Brooklyn-Battery Tunnel. Phase I was completed in July 2006 and Phase II, including a landscaped promenade, widened sidewalks, and safer pedestrian crossings will be complete in 2009.

Parks & Open Space

• East River Waterfront
  This $150 million project, which is currently in the design and development phase, calls for the redevelopment of the two-mile section beneath FDR Drive. The project will also revitalize several piers along the stretch of the East River between the Battery Maritime Building and the East River Park. Improvements include a widened continuous esplanade, the creation of pavilions and programmed spaces, the reconstruction of Pier 15, a new marina, and improvements to Piers 35, 36 and 42.
• Battery Maritime Building
  This project will serve as the southern gateway to the new esplanade. In 2008, NYCEDC designated the Dermot Company and Poulakakos Family to redevelop the site.  Plans for the site include a food market, boutique hotel and rooftop bar.  Phase I is expected to be complete by the end of 2009.

In addition to the projects mentioned above, $162 million has been invested in the creation of new parks and open space, and $500 million has been dedicated to improving Lower Manhattan's roadways and other infrastructure.

There are numerous public and private developments planned for the area. Some of the projects include:

• Freedom Tower
  2.6 million SF Class A office tower that will house 69 office floors, world class restaurants, an observation deck, broadcasting and retail space. The tower, developed by Silverstein Properties, will be ready for occupancy in 2012. State and Federal government agencies have already reserved approximately one million square feet of office space.
  
• Forest City Ratner
  A 76-story residential tower designed by Frank Gehry is under construction on Beekman and William Streets. The tower will house residential condos, 16,000 SF of outdoor space and a new school for the area. Occupancy for the tower is expected in 2010 with the school planned to open in 2009.
  
• South Street Seaport
  General Growth Properties released a plan to redevelop the South Street Seaport.  Visions for the Seaport include a world class maritime museum, breathtaking water and skyline views, and more than 100 shops, cafes, and restaurants.  The City Parks department unveiled plans for a new sunken green space at the corner of Fulton and Gold at the Seaport which will feature new pedestrian walkways and a waterfall.
• Area Hotel Development
  Already home to over 2,400 rooms, Lower Manhattan has over 3,400 additional rooms coming online over the next three years.  Current projects include the 250-room Andaz Hotel, the 220-room W Hotel, and the 100-room Smyth Hotel.
  

A number of City and State incentives are helping attract tenants to Lower Manhattan. Business income tax credits, rent reductions, real estate tax savings and energy discounts are just some of the benefits available to businesses in the area.

The estimated savings from the following as-of-right programs can total $15 per SF or more per year. (See table below for sample benefits calculation.)

Relocation and Employment Assistance Program (REAP)

• Annual credit against City business tax of up to $3,000 per employee for companies that relocate from outside NYC or from Manhattan below 96th Street
• Benefits are available for up to 12 years, refundable for first five
• Benefits are available for all jobs moved and created over the first five years, up to the greater of 100 and twice the initial number of employees
• Company must have been operating for 24 months before the start of the tax year during which it relocated
• Minimum required investment of $25 per SF on leased space, or the building must be improved by 50 percent of its appraised value

To apply, download this REAP Application (PDF) maintained at nyc.gov.

Commercial Expansion Program (CEP)
A credit of up to $2.50 per SF per year for five years is available to tenants signing qualifying leases in pre-1999 buildings with at least 25,000 SF of floor area. To be eligible for the program, minimum lease terms and investments are required as indicated below:

• Minimum lease term must be (a) three years if 125 people or fewer will be employed in the premises; or (b) 10 years if more than 125 people will be employed in the premises
• Minimum investment level must be at least (a) $2.50 per SF for leases of less than 10 years and for renewal leases of 10 years or more that include newly leased space; (b) $5.00 per SF for renewal leases of 10 years or more involving only previously occupied space; and (c) $25.00 per SF for new and expansion leases of 10 years or more

To apply, download this CEP Application (PDF) maintained at nyc.gov.

Industrial and Commercial Incentive Program (ICIP)

• Partial exemption from increases in real property tax that would otherwise result from construction or renovation of commercial buildings
• Minimum expenditures required
• Benefits depend on location of property

To apply, download the ICIP Application (PDF) maintained at nyc.gov.

Energy Cost Savings Program (ECSP)

• 12-year program providing discounts of up to 45 percent on delivery portion of electric and gas bills
• To qualify, building must be receiving ICIP benefits or be leased from the NYCIDA, City of New York or certain other public agencies

To apply, download the ECSP Application (PDF) maintained at nyc.gov.

Average Annual Savings of $15.92/SF*
We’ve made some sample calculations to illustrate potential savings afforded by select financial incentives. The table below is provided as an example only. Actual savings vary on case-by-case basis.

	Year 1	Year 2	Year 3	Year 4	Year 5	Total Savings After 5 Years
LMREAP	$270,000	$270,000	$270,000	$270,000	$270,000	$1,350,000
CRP	$50,000	$50,000	$50,000	$33,333	$16,667	$200,000
LMEP	$8,400	$8,400	$8,400	$8,400	$8,400	$42,000
Combined Incentive Savings	$328,400	$328,400	$328,400	$311,733	$295,067	$1,592,000
Annual Savings per SF	$16.42	$16.42	$16.42	$15.92	$14.75	$15.92

* Example in table assumes: 90 employees; 20,000 SF leased space; per SF real estate tax of $2.50; per SF electricity cost of $2.80; and annual NYC business income tax liability of $45,000.