Downtown Manhattan has undergone a “brain gain,” and companies with their offices in FiDi are feeling the boost.
A newly released study by the Downtown Alliance for New York entitled “The Brain Gain” found that nearly a million college graduates now live within a 30-minute commute of the district, a talent pool that has grown steadily in recent years. Major companies from American Express to Uber already call Downtown home, making up part of a Lower Manhattan economy generating more than $100 billion in city tax revenue and supporting more than 235,000 private sector employees. TRD sat down with Jessica Lappin, President of the Alliance for Downtown New York, and Jeremy Moss, Executive Vice President at Silverstein Properties, to discuss the report and the future trajectory for a district that has experienced a dramatic upswing.
Numbers don’t lie
Access to an educated workforce is important for owners, executives and entrepreneurs when selecting an office location.
Lower Manhattan’s diverse office stock is connected by 13 subway lines, six local and 24 express bus routes, multiple ferry routes, as well as PATH service to and from New Jersey.
More than 970,000 college graduates aged 18-44 can commute to Lower Manhattan in 30 minutes or less. Workers between ages 25 and 34 surged by 100,000 in the 30-minute commute area since 2012, while the 35 to 44 age group’s population increased by 87,000.
Additionally, half of New York City’s top 10 neighborhoods that saw an increase in the number of educated adults are located within Lower Manhattan’s 30-minute commute zone. That includes trendy Millennial favorites like Bed-Stuy, Williamsburg and Jersey City, according to the report which analyzed 2022 Census data.
“This report confirmed one big thing: Location, location, location,” says Lappin. “Younger, talented, educated workers are still drawn to urban living. They want to be close to work, so having the ability to live within a 30-minute radius is important to them.”
According to the most recent data, 70% of Lower Manhattan’s workforce lives in the five boroughs, making the district an “ideal place for New Yorkers who use public transportation,” says Moss. “It reinforces this idea that Lower Manhattan is a New Yorker’s downtown.”
Diversity of industry
The district, which runs south of City Hall from river to river, was once defined by its Wall Street roots. But while the Finance, Insurance and Real Estate (FIRE) industry remains a major presence, it is no longer the only game in downtown.
Lower Manhattan is now home to advertising giants WPP and Droga 5, media players like Conde Nast, VOX Media and Harper Collins, headquarters of fashion icons like Gucci and Hugo Boss, renowned companies such as Diageo, Spotify, Uber and countless other industry leaders.
“There was a time where we were 66% finance, and now we’re more like a third. Back in the day many of those workers’ commutes began in the suburbs ” explains Lappin. “We are still the financial capital of the world, but what happened over the last generation was twofold: the creative industries moved in: fashion, advertising and tech and young people, in every industry, are more likely to live in the city. That is a big shift.”
The report found that the professional services industry (which includes technical services including but not limited to consulting, architecture and design, and legal services) added 85,000 employees over the last decade in the commuting basin surrounding Lower Manhattan..
The FIRE industries within a 30 minutes commuting window of Lower Manhattan likewise saw a workforce increase of 25,000. Communities close to Lower Manhattan also saw their information workers increase by 16,000. Arts and entertainment workers jumped by 5,000.
According to the report, many other parts of New York City experienced losses in these categories of workers during the same time period. While the remaining metro region saw healthy increases compared to its 2000-2013 numbers, Lower Manhattan’s 30-minute commute area remained the primary engine of growth in creative and professional services employees, extending a two-decade trend.
Downtown’s office stock offers a mix of properties, from trophy Class A properties to more affordable older office space. Moss adds that, while the rent gap with Midtown is closing, retailers and tenants can often still find space Downtown at a relative discount.
Room to grow
Lower Manhattan’s access to the talent pool is expected to continue trending upward.
More than 88,000 units of new housing, about 45% of all housing units currently under construction in New York City, are within a 30-minute commute of Lower Manhattan. Moreover, the report found that just over 10% of those new housing units are planned or under construction in the Downtown area itself.
In Lower Manhattan alone, more than 70,000 residents now live within the district that boasts Michelin-starred restaurants, boutique shopping and lifestyle amenities from indoor soccer to wellness spas.
“There are two primary reasons everybody wants to live here,” says Moss, whose company, Silverstein Properties, is the developer behind the World Trade Center complex. “One, there are a lot of jobs here, and two, there’s a quality of life that you really can’t replicate in any other city.”
Read the full report here to get the inside scoop on NYC’s fastest-growing live/work/play neighborhood.