Downtown Alliance Releases Q2 2021 Real Estate Market Report

The 2nd quarter 2021 report released in early August by the Downtown Alliance indicates that although office vacancies remain high, rents were relatively stable as the pace of leasing activity picked up momentum with city government and several private employers beginning to bring workers back to Lower Manhattan offices. Other key takeaways from the BID’s report revealed that renewals continued to drive office leasing activity; demand for residential units near office buildings surge; and similar to the pace of openings in 2019, 41 retailers opened in the first half of 2021— of which 13 replaced businesses closed during 2020 and 28 opened in Q2. The report further indicated that financial services companies were the primary drivers of the large increase in availability, albeit many of the large blocks were long anticipated additions from vacating tenants or planned redevelopments, and not necessarily pandemic-related.