A New Look for the Financial District. By Hope Wilkos, Blogger
Is it a sign of the times that the Financial District and Lower Manhattan seem to be building a whole new image? This has always been the place to be for the finance industry (banks and financial advisory firms) but now the tenant mix is becoming more diversified.
More than 40% of the residents walk to work in this area. The residential population has more than doubled since September 11th and the number of hotels has tripled to 18. In addition, a growing number of law firms, tech companies and non-profit organizations are now calling Lower Manhattan their home. Well-known media giants such as Newsweek and Playboy are arriving in the area and calling it home. Conde’ Nast Publications is negotiating a 1 million-square-foot lease at 1 World Trade Center, the skyscraper under construction at ground zero.
This will have a very positive impact by drawing a different range of companies into the area and drawing in more businesses.
While these tenants are making their way into the area, corporations such as Fidelity Investments and Deloitte and Touche’ are respectively leaving for Jersey City and Rockefeller Center. Morgan Stanley will follow on their heels. Now that the majority of trading is done electronically at the New York Stock Exchange and the Commodities Exchange, it is not so imperative that financial firms need to be located directly near the financial institutions that they are supporting. The Federal Deposit Insurance Corporation made their move last year to the Empire State Building and following them will be the Depository Trust and Clearing Corporation who will move the bulk of their operation to Jersey City. The Japanese Bank Nomura appears to be headed to Midtown.
The concern in regards to reducing and saving costs is making Jersey City a very desirable location for some of the leaders in the finance industry such as Charles Schwab and TD Ameritrade who have already moved their operation to the area.
Unfortunately, while the mix of tenants does seem to be changing, it appears evident that the vacancy rate has risen. On a more positive note, the rents are 30% lower than in Midtown and thankfully this makes the area more attractive. In addition, the city’s two newest and most technologically advanced skyscrapers are expected to open in 2013 at ground zero.
Regardless, financial services will still remain the backbone of the economy and the dominating industry in the neighborhood for now. As we move further into the next decade, we will see what is in store for Lower Manhattan.
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