Financing & Incentives

NYCIDA Garment Center Program

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NYCIDA tax incentives can lower the costs for property owners to lease space to Fashion Manufacturers in NYC's Garment Center Business Improvement District.

Program Goals

  • Enable Fashion Manufacturers to maintain a presence in the Garment Center through affordable, long-term leases

  • Support broader fashion ecosystem by providing real estate stability to Fashion Manufacturers (see definition below)

Participating Property Requirements

Eligible GeographyGarment Center BID (see map below)
Term LengthMinimum 15 Years
Fashion Manufacturer SF/PropertyMinimum 25,000 SF
Fashion Manufacturer Rent Cap

$35 PSF Gross Rent

(all expenses included)

Program Benefits

Real Estate Tax

Real estate taxes are lowered based on square footage leased to Fashion Manufacturers as follows:

Total Square Footage Leased to Fashion ManufacturersReal Estate Tax Benefit per Square Foot
25,000$1.00
50,000$2.00
75,000$3.00
100,000$4.00

Note: $0.04 of Real Estate Tax Benefit for each 1,000 SF of Fashion Manufacturer SF preserved above 25,000 SF. Benefit is applied to Property’s gross square footage.

Leasing Requirements for Fashion Manufacturer Tenants

  • Gross rent cap of $35 PSF (all expenses included) with annual escalations allowed

  • Minimum lease term of 15 years (through initial term and extension options)

  • Fully executed leases at closing of the NYCIDA transaction

Definition: Fashion Manufacturer

The program defines "Fashion Manufacturer" as a company that:

  1. Transforms raw materials into fashion-related products that are produced on-site and at volume for paying clients;
  2. Primarily cuts and sews or knits fabric into garments and/or provides a service along the garment production supply chain such as pattern-making, sample-making, embroidery and embellishment, or textile and raw materials treatment and dyeing services;
  3. Primarily buys raw material, designs, and prepares samples, or makes products that are an accessory to garment production (e.g., belt manufacturers, button manufacturers, and label and tag manufacturers);
  4. Primarily manufactures fashion accessories such as jewelry, handbags and luggage, footwear, and technology-focused applications for the fashion and garment industry (i.e., “wearables”); or
  5. Is primarily engaged in other activities involving the production, assembly, creation, fabrication, or processing of garments or related fashion products (e.g., marking, grading) approved in writing by the NYCIDA (for purposes of this definition)

Selection Considerations

New York City Industrial Development Agency (NYCIDA) will evaluate specific properties from landlords looking to fulfill the Program Goals and abide by the Participating Property Requirements. The NYCIDA Garment Center Program is seeking total Fashion Manufacturer SF of 500,000 SF. The NYCIDA may not provide Program Benefits in excess of 500,000 SF of total Fashion Manufacturer SF.

Please contact the NYCIDA to determine your property’s eligibility or for further information about this program.

Garment Center BID Map

(Click map to enlarge.)

Garment Center IDA map

Transaction Structure

To receive the above-described benefits, approved companies must lease their properties to NYCIDA, which leases the site back to the company for a term equal to the term of real estate tax reductions. This ‘lease-back’ structure should not prevent companies from obtaining federal tax depreciation benefits on the property.

Disclaimer

The submission of an application to the Agency does not obligate the Agency to provide the requested benefits. The Agency and its duly authorized officers retain the discretion to not proceed with any project notwithstanding the prior adoption by the Agency of an inducement and/ or authorizing resolution with respect to such project.

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