According to figures released yesterday from Jones Lang LaSalle, Lower Manhattan is experiencing some steady progress with regards to building closings. However, six weeks after the water damage wrought by Hurricane Sandy, 12.4 percent of office space below Canal Street remains closed according to data from the real estate giant.
Lower Manhattan possesses 183 Class A and B properties. After Hurricane Sandy, 15 of these properties, with 12.6 million square feet remain shuttered — accounting for some 12.6 of the 101.2 million square feet in the Lower Manhattan.
Progress has been seen in the steady number of re-openings, however. As of last week 21 buildings containing 17.9 percent of square footage in the district (18 million sqf). These figures are down from the 23 buildings which were still shuttered in the previous week.
This damage caused by Hurricane Sandy has thus sparked a debate within the New York City development community, with politicians such as Councilman Brad Lander remaining bearish on water side development, and developers and Mayor Bloomberg remaining bullish on redevelopment n both Lower Manhattan and Brooklyn.
It will be interesting to see which way investors decide to swing on the issue.