Downtown Manhattan Office Space for Rent
Downtown Manhattan also known as Lower Manhattan is one of Manhattan’s most historic neighborhoods and contains smaller submarkets such as TriBeCa, World Trade Center, the Financial District, Battery Park, Water Street Corridor, and Two Bridges. The Financial District encompasses a significant portion of Lower Manhattan, so it’s no surprise Lower Manhattan is seen as the financial capital of the world and is the fourth largest business district in the U.S., after Midtown Manhattan, Chicago Loop, and Washington, D.C.
Lower Manhattan office space is increasingly in demand, boasting high-value commercial office buildings with lower average rents and a higher vacancy rate than both Midtown and Midtown South.
What Our Brokers Say About Downtown Manhattan Office Space
Leasing activity in Downtown Manhattan swelled in 2017, with data showing a 63.6% increase over 2016. World Trade Center and the Financial East District showed the strongest leasing trends, which contributed to Lower Manhattan’s lowest vacancy rate in the last five years.
Lower Manhattan test office space is ideal for commercial tenants in financial and government services due to unmatched proximity to New York City’s core infrastructure. However, slow downsizing of the financial services sector over the last ten years has opened up commercial real estate to the Technology, Advertising, Media, and Information sector.
Notable companies with headquarters in Lower Manhattan include Investment Technology Group, Condé Nast, Goldman Sachs, Hudson’s Bay Company, Spotify, Verizon Communications, and IBT Media.
Downtown Manhattan Commercial Space For Lease | By the numbers
|Office Space for Rent||Price per square foot|
Downtown Manhattan Office Space | Lease Data & Trends
Commercial tenants seeking Downtown Manhattan office space will find average overall asking rents hovering around $64 per square foot. Office space in Class A buildings sees a larger average range, available anywhere from $60-$82 per square foot. These asking rents are well below the NYC office space averages of $76 per square foot and $62 Class B and $90 for Class A units.
World Trade Center features the highest asking rents, with Class A properties leasing at an average of $82. Financial District, with nearly 15 million square feet available, has the second highest Class A asking prices in the low $70s. Class A commercial office space in Downtown Manhattan can be found at more affordable rents in the $60s in the TriBeCa, City Hall, and Water Street Corridor.
Downtown Manhattan’s commercial real estate inventory is close to 100 million square feet with a vacancy rate around 9%. Over half a million square feet are currently under construction.
Getting Around Downtown Manhattan
Downtown Manhattan has multiple transportation options, including 14 subway lines, 32 bus lines, PATH service to New Jersey, water taxis, and ferry service to Queens, Brooklyn, Staten Island, Yonkers, and New Jersey. The Brooklyn Battery Tunnel, Brooklyn Bridge, and Manhattan Bridge all connect to Lower Manhattan. The Fulton Center and the World Trade Center Transportation Hub and PATH station received pricey face lifts in recent years and have made transportation more visually appealing, though the renovations’ benefit to commuters isn’t as apparent.
Bike paths run throughout Hudson River Park, Battery Park, and East River Park, and there are plenty of bike lanes in Lower Manhattan’s streets. As with most of the city, the safety of bike lanes is primarily dependent on tourist and vehicle traffic.
Downtown Manhattan Neighborhood & History
Rich with history, the narrow, twisting streets lead to many of New York City’s historical buildings and landmarks, such as Federal Hall, New York City Hall, Bowling Green, the Charging Bull, Wall Street, St. Paul’s Chapel, and Trinity Church. The newest — and tallest — landmark is One World Trade Center which opened in late 2014.
Post-9/11 ushered in a residential resurgence. Many buildings once holding office space were converted to apartments, condos, retail shops, and restaurants, and the residential population has tripled since 2000. With these new additions, Lower Manhattan is shifting away from its 9-to-5 reputation and attracting more families and young professionals who are looking to both work and live in the area.