Financial District not likely to see mass exodus of commercial tenants

TRD 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

Mayor Bill de Blasio and subway damage caused by Hurricane Sandy (Credit: Getty Images)

Program to rebuild Sandy-damaged homes needs extra $92M

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

Army Corps of Engineers Commander Lt. Gen. Todd Semonite and flooding caused by Hurricane Sandy in 2012 (inset) (Credit: Getty Images)

A $119B seawall still might not protect Manhattan, critics say

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

Neir’s Tavern (Credit: Google Maps)

City’s oldest bar, of “Goodfellas” fame, gets last-minute lifeline

Neir's Tavern (Credit: Google Maps)

Landlord to bar owner: You don’t have to go home but you can’t stay here

729 Seventh Avenue (Credit: Google Maps)

Lawyer argued façade was safe 3 months before fatal accident