This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Financial District Real Estate Bounces Back

NEW YORK ( TheStreet) - Real estate values in New York City's Financial District have ebbed and flowed since the September 11, 2001 terrorist attacks a decade ago, but not only has the area recovered it is outperforming other Manhattan neighborhoods.

More than 20 million square feet of new development have been built in Lower Manhattan over the last 10 years and asking rents -- both for commercial and residential properties, leases and purchases -- are on the rise again following the Great Recession, according to a Real Estate Board of New York (REBNY) report.

Retail rents rose between 24% and 68% throughout the city over the last decade, depending on the neighborhood, with the steepest jump in the downtown area, where retailers can now expect to pay upwards of $100 per square foot.

Commercial space peaked in the summer of 2008 at $62.27/sf in Lower Manhattan, compared with $99.22/sf in Midtown and $88.37/sf in Manhattan overall. Immediately following Sept. 11, those rates were $42.28/sf, $61.28/sf and $54.68/sf, respectively, REBNY said.

View More 9/11 Coverage

With millions of commercial square footage opening up in the Financial District over the next year or two, it could be 2018 or even 2020 before average rents climb back to prerecession levels, Ron Lagnado, a partner in the Real Estate Services Group at WeiserMazars, told TheStreet, but the trend is moving in that direction.

Residential rental rates jumped between 41% and 43% in Lower Manhattan between 2001 and 2011, with overall Manhattan rental values gaining less than 19% in the decade, the REBNY report also showed. Average rents for studios, one-bedroom and two-bedroom apartments were cheaper below Canal Street in 2001 than in overall Manhattan, REBNY reported, but are now higher in all three categories.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs