Financial District not likely to see mass exodus of commercial tenants

New York /
Nov.November 13, 2012 01:00 PM

Despite the Financial District’s current state of water pumping, closed buildings and workers in Hazmat suits walking down the streets, analysts don’t think that Hurricane Sandy damage will cause tenants to pack their boxes en masse, the New York Times reported. Not only that, commercial tenants interested in setting up shop in the neighborhood won’t likely be deterred from the area over flood concerns. Brokers say it’s a good place to do business.

Similarly, Lower Manhattan residential properties remain in demand despite the storm’s impact.

But there are significant challenges ahead. Getting an accurate assessment of the neighborhood’s damage has been complicated by major landlords refusing to answer question about their properties’ status. As of yesterday, 20 percent of all major office properties below Canal Street are closed — 37 out of 183 buildings and a total of 29.2 million square feet, according to Jones Lang LaSalle. Standing out is 4 New York Plaza, which could stay closed for a year.

But some tenants aren’t convinced that downtown will rebound. WBAI, a public radio station that has space at 120 Wall Street, is considering a move elsewhere. The investment bank Toussaint Capital Partners is also pondering relocation, as their 110 Wall Street location was flooded. However, CGI Group, an IT company, said it’s staying put to be close to its client base. [NYT]Zachary Kussin


Related Articles

arrow_forward_ios
Donald Trump with the Trump National Golf Club Westchester (Trump National Westchester, Getty)
Trump Organization facing criminal probe over Westchester golf course
Trump Organization facing criminal probe over Westchester golf course
Cushman acquires 40% stake in Greystone lending business for $500M
Cushman acquires 40% stake in Greystone lending business for $500M
Cushman acquires 40% stake in Greystone lending business for $500M
Durst Organization Chairman Douglas Durst, Venable LLP Chairman Stuart Ingis and 151 West 42nd Street (Getty, Venable)
Durst’s One Five One inks 158K sf lease for law firm tenant
Durst’s One Five One inks 158K sf lease for law firm tenant
Signature Bank CEO Joseph DePaolo (Signature Bank, iStock)
Signature Bank reports record results
Signature Bank reports record results
Ira Zlotowitz, president of Eastern Union, is starting his own company (Photo Illustration / Getty, Eastern Union)
Ira Zlotowitz leaving Eastern Union to start new company
Ira Zlotowitz leaving Eastern Union to start new company
1 North Moore and Platinum Properties CEO Khashy Eyn (Google Maps, Platinum Properties)
Tribeca penthouse rents for $85K per month, possibly setting NYC record
Tribeca penthouse rents for $85K per month, possibly setting NYC record
Hudson Yards (Getty, iStock)
City’s bet on Hudson Yards beginning to pay off
City’s bet on Hudson Yards beginning to pay off
VTS CEO Nick Romito and Lane Technologies CEO Clinton Robinson 
VTS to buy office-app developer for $200M
VTS to buy office-app developer for $200M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...