LOWER MANHATTAN REAL ESTATE MARKET YEAR IN REVIEW 2010

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1 LOWER MANHATTAN REAL ESTATE MARKET YEAR IN REVIEW Alliance for Downtown New York COMMERCIAL OFFICE MARKET Leasing Activity finished the year with a total 3.25 million sf of leasing activity and four consecutive quarters of improvements in yearover-year leasing, ending the year at a 3% increase over. The volume of transactions also increased 27% over. The biggest news in deal-making this year was that Condé Nast completed a letter of intent for 1 million sf at One World Trade Center (which is not yet factored into leasing activity). Several notable tenants also signed large leases and 6 of the city s top 30 leases were signed south of Chambers Street. s top 30 leases demonstrate that the district s major tenants remain committed to the area while new firms are increasingly drawn to it. This list includes two government renewals at 60 Broad Street totaling almost 800,000 sf, law firm Kenyon & Kenyon s 199,200 sf renewal at 1 Broadway, and health insurer HealthFirst s 172,600 sf lease at 100 Church Street. The New York Daily News and Broadcast Music Inc. (BMI) also signed major leases this year, relocating from Midtown South. Vacancy has had one of the lowest vacancy rates among all business districts nationwide since the beginning of the economic downturn in, and ended in fourth place. LOWER MANHATTAN LEASING ACTIVITY (SF) Source: CB Richard Ellis 7 million 6 million 5 million 4 million 3 million 2 million 1 million LOWER MANHATTAN OFFICE MARKET SUMMARY Source: Cushman & Wakefield Total Vacancy Class A 8.7% 8.9% 8.8% 11.9% 10.9% Class B 9.7% 10.2% 10.4% 11.8% 11.9% Class C 13.0% 14.0% 13.8% 13.5% 13.0% Overall 9.6% 10.0% 9.9% 12.1% 11.5% Average Asking Rents Class A $43.78 $ $39.78 $42.35 $42.68 Class B $37.18 $ $35.63 $34.99 $34.93 Class C $37.10 $ $36.70 $35.83 $33.86 Overall $40.36 $ $37.81 $39.08 $ % 12% 10% 8% 6% 4% 2% 0% LOWER MANHATTAN VACANCY RATES Source: Cushman & Wakefield Sublease Total 14% 12% 10% 8% 6% 4% 2% 0% MIDTOWN VACANCY RATES Sublease Total 1

2 The overall vacancy rate held steady around 10% in the first half of, but jumped to 12.1% during the third quarter due primarily to the addition of large blocks of space at 85 Broad Street, 70 Pine Street, and One New York Plaza. Then, strong leasing during the fourth quarter caused the vacancy rate to drop to 11.5%. Meanwhile, sublease vacancy, which remained low throughout the economic downturn in comparison to Midtown, declined steadily for five consecutive quarters. The district s recent and upcoming additions to inventory are primarily large blocks, while Midtown is undersupplied in large blocks. This market factor combined with s superior transportation, capital improvements, quality of life, and competitive advantage in pricing will give the district a leg up in attracting major tenants in the market. Rents After six consecutive quarters of steady declines, pricing stabilized during the second, third, and fourth quarters of, ending the year at $38.78 per sf for overall asking rents and $42.68 per sf for Class A asking rents. s stabilizing rents lag the trend in Midtown where asking rents have held steady TOP 30 LOWER MANHATTAN LEASES SIGNED Source: CoStar, Downtown Alliance Tenant Name Building Address SF Leased Quarter Signed Transaction Industry Type State of New York 60 Broad St 480,708 Renewal Government City of New York 60 Broad St 315,751 Renewal Government Kenyon & Kenyon 1 Broadway 199,240 Renewal Professional Services HealthFirst 100 Church St 172,577 Direct Insurance Seward & Kissel 1 Battery Park Plaza 125,000 Renewal Professional Services Nomura 2 World Financial Center 123,969 Expansion FIRE New York Liquidation Bureau 110 William St 116,500 Direct Government New York Daily News 4 New York Plz 99,050 Relocation Creative Services NY State Office of Temporary 100 Church St 89,558 Direct Government & Disability Assistance Royal Bank of Canada 3 World Financial Center 75,139 Expansion FIRE Capital Markets Company 77 Water Street 73,059 Direct FIRE Topps 1 Whitehall Street 66,684 Renewal Creative Services Broadcast Music Inc 7 World Trade Center 58,000 Relocation Creative Services New York City Police Pension 233 Broadway Renewal Government Fund 56,196 Federal Reserve 3 World Financial Center 54,970 Direct Government Sapient Corp 40 Fulton Street 51,861 Relocation Professional Services Media Whiz 77 Water Street 48,706 Relocation Creative Services Capco 77 Water Street 48,706 Direct FIRE Parsons Corporation 100 Broadway 48,213 Renewal Creative Services Forex 32 Old Slip 45,000 Direct FIRE Haks Engineers 40 Wall St 44,101 Expansion Creative Services Mildred Elley School 25 Broadway 42,000 Relocation Education Choice Logistics 1 Whitehall St 42,000 Direct Professional Services TMP Worldwide Advertising & 125 Broad St 37,404 Relocation Creative Services Communications AIDS Vaccine Initiative 125 Broad Street 37,404 Direct Nonprofit New York Hospital 14 Wall St 37,000 Direct Healthcare IDB Communications Group 90 John Street 36,092 Renewal Creative Services Allied World Insurance 199 Water St 35,305 Expansion FIRE Company Chapdelaine & Co. 199 Water St 35,035 Renewal FIRE The Vera Institute of Justice 233 Broadway 27,845 Renewal Non-profit 2

3 $90 $80 $70 $60 $50 $40 $30 since the end of. In, Midtown overall asking rents were $62.46 per sf and Class A rents were $67.27 per sf. remains the more affordable option at a time when tenants are still price sensitive, as overall asking rents are 61% (or $23.68 per sf) higher in Midtown and Class A rents are 58% (or $24.59 per sf) higher. Sales 1 OVERALL AVERAGE ASKING RENTS Source: Cushman & Wakefield Midtown s commercial sales market sprung to life in the second half of. Ten of the year s 11 transactions were completed in the third and fourth quarters vast improvement over which saw only three sales all year. JP Morgan Chase completed a sale-leaseback of 4 New York Plaza during. The buyer, Harbor Group International and Capstone Equities purchased the building for $107 million total, or $105 per sf. The 1 million sf, 22-story building was 75% occupied by JP Morgan Chase, which will lease the building for at least 15 years. 30 Cliff Street, a six-story commercial building, sold for $3.575 million or $285 per sf during. The buyer, Masjid Manhattan, is a nonprofit organization that plans to occupy the building, moving from 20 Warren Street. 40 Water Street, a five-story commercial building, sold for $2.248 million or $319 per sf during. Chris Soukas purchased 140 William Street, a vacant seven-story commercial building, for $11.35 million or $313 per sf during. 1 Sources of transactional information: Massey Knakal, Downtown Alliance 100% 95% 90% 85% 80% 75% 70% 65% 60% TAKING RENT INDEX Source: CB Richard Ellis The new owner is making capital improvements, maintaining the building for commercial use with ground floor retail. In, Greenwich Thames Realty purchased the lot at Greenwich Street plus air rights from Greenwich Street for a total $19.6 million or $126 per buildable sf. The site can hold a 156,000-square-foot, mixed-use development. In October, the Savanna Fund bought the mortgage for 5 Hanover Square for $51.5 million from Capital One Bank. The building was about 15% vacant at the time of the sale. Mm 100 Broadway LLC bought 100 Broadway in for $316 per sf. Planned Parenthood International purchased an office condo at 125 Maiden Lane for $474 per sf in. In, a retail condo sold at 119 Chambers Street for $570 per sf including the basement. A Chinese investor bought the American Bank Note Building at 70 Broad Street in December for $18 million or $986 per sf. The Blue School purchased 241 Water Street in with plans to move its preschool into the 33,000 sf building from its current location in the East Village. Additionally, M&T Bank listed 375 Pearl Street (the Verizon Building) during. Developer YoungWoo & Associates and investor Sabey Corp reached a tentative agreement to buy the nearly vacant 700,000 sf building for more than $100 million, or about $143 per sf. 3

4 INDUSTRIES AND EMPLOYMENT UNEMPLOYMENT RATES Source: US Bureau of Labor Statistics, NY State Department of Labor 11% 10% 9% 8% 7% 6% 5% 4% Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 City State Nation City and State unemployment rates began to drop in January after a year and a half of steady increases. The city decreased from 10.5% at the end of to 8.6% at the end of, and the state dropped from 9.4% to 8.0% during the same time period. Experts at the New York State Department of Labor believe these drops are due in part to workers exiting the workforce, but also to an increase in employment. Additional analysis by Eastern Consolidated showed that New York City added over 57,000 private sector jobs in the first nine months of the year followed by losses of 6,700 jobs during, for a net gain of 50,400 jobs. The fourth quarter decreases were primarily in retail, which is expected to trend up again in In, a year of employment decreases reached a low point in, followed by three quarters of steady improvement. Total employment in (the most recent data available) was 305,800, a 1.1% increase over last year and 0.7% increase over last quarter. Private sector employment also increased 1.5% year-over-year and was stable over last quarter. Meanwhile, saw a remarkable increase of 233 firms (or 2.7%) over last quarter, and a 3.3% increase year-over-year. This growth was driven by the private sector. Professional Services, Government and FIRE are still the mainstay of employment, comprising the largest proportion of the workforce and dominating the lists of 100% 90% 80% LOWER MANHATTAN WORKFORCE PROPORTION OF INDUSTRIES Source: Alliance for Downtown New York Gov t 33% Gov t 30% 271 RELOCATIONS TO LOWER MANHATTAN SINCE 2005 Source: Alliance for Downtown New York Technology 7% Creative Services 18% 70% 60% 50% 40% 30% 20% 10% 0% Other 27% Prof Svcs 12% FIRE 28% Other 34% Prof Svcs 11% FIRE 25% Professional Services 37% Other 3% Nonprofit 15% FIRE 14% Education 2% Gov t 2% Healthcare 2% 4

5 LOWER MANHATTAN EMPLOYMENT Source: NY State Dept of Labor LOWER MANHATTAN EMPLOYMENT Source: NY State Dept of Labor 315, , , , ,000 8,400 8,300 8,200 8,100 8,000 7, ,000 7, ,000 7, ,000 Private Employees Total Employment 7,600 7,500 largest employers and largest leases signed in. Leasing and employment trends also highlight the ongoing diversification of the local economy. The proportion of people employed in Government dropped from 33% in to 25% in, the FIRE sector dropped from 28% to 25%, and Professional Services dropped from 12% to 11%. Meanwhile, people employed in all other industries (combined) increased from 27% to 34%. This shift is also reflected in the firms that have moved to since Of the total 271 companies, 37% were in Professional Services, 18% were in Creative Services, 15% were Nonprofits, and 14% were in the FIRE sector. LOWER MANHATTAN S LARGEST EMPLOYERS Source: CoStar, Downtown Alliance Number of Ranking Company Name SF Occupied Sector Employees (est) 1 City of New York 5,401,547 Government 21,606 2 The Bank of New York Mellon Corporation 2,642,462 FIRE 10,570 3 Deutsche Bank 2,583,794 FIRE 10,335 4 Merrill Lynch & Co., Inc. 2,581,906 FIRE 10,328 5 J.P. Morgan Chase & Co. 1,953,916 FIRE 7,816 6 State of New York 1,917,970 Government 7,672 7 Metropolitan Transit Authority 1,686,136 Government 6,745 8 American Express Company 1,270,932 FIRE 5,084 9 The Goldman Sachs Goups 1,200,000 FIRE 4, Verizon Global Solutions Inc 1,171,540 Technology 4, U.S. Government 1,163,719 Government 4, Standard & Poor's 1,055,994 Professional 4, Citicorp Investment Services 969,125 FIRE 3, American International Group, Inc. 889,222 FIRE 3, NY Stock Exchange 869,617 FIRE 3, Deloitte & Touche, LLP 747,525 Professional 2, Moody's Investor Services 668,594 FIRE 2, Depository Trust & Clearing Corporation 608,242 FIRE 2, Sullivan and Cromwell 584,504 Professional Services 2, Royal Bank of Canada 539,307 FIRE 2, Cleary Gottlieb Steen & Hamilton, LLP 533,444 Professional Services 2, The Guardian Life Insurance Company of America 525,128 FIRE 2, Cadwalader, Wickersham & Taft LLP 469,312 Professional Services 1, HIP Health Plan of New York 438,581 FIRE 1, Brown Brothers Harriman & Co. 429,995 FIRE 1, New York Mercantile Exchange 419,991 FIRE 1, United Federation of Teachers 400,452 Professional Services 1, Sword Intech Inc. 400,000 Technology 1, Fried, Frank, Harris, Shriver & Jacobson LLP 390,710 Professional Services 1, Federal Reserve Bank of New York 375,464 Government 1,502 5

6 RESIDENTIAL MARKET RESIDENTIAL POPULATION AND DEVELOPMENT GROWTH Source: Downtown Alliance 70,000 60,000 50,000 40,000 30,000 20,000 10, units population Development & Population Growth In, 408 new units opened in three buildings south of Chambers Street: the Moinian Group s 223-unit W Hotel & Residences at 123 Washington Street, 183 additional rental units at 20 Exchange Place, and a 2-unit building at 24 Warren Street. These additions bring Lower Manhattan s total inventory to 28,251 units in 313 buildings. Over half of s inventory is rental, almost one-third are condominiums, and the remaining 18% are a mix of dorms, co-ops, and senior housing. Recent additions to inventory have been and will continue to be almost entirely rental and condo units. This year s additions bring s population to an estimated 56,000, a 170% increase in 10 years since 2000 when just Not Available 1% Dorm 3% Rental/ Condo 5% Coop 8% RESIDENTIAL INVENTORY TYPES OF UNITS IN LOWER MANHATTAN Source: Downtown Alliance Senior Housing 1% Condo 29% Rental 53% HIGHLIGHTS OF RESIDENTIAL DEVELOPMENT Source: Downtown Alliance Address Type Building Type Units Date Open Status The W Hotel & Residences at Condo New Construction 223 Opened 123 Washington Street 24 Warren Street Conversion Conversion 2 Opened 40 Gold Street Rental New Construction Construction 8 Spruce Street Rental New Construction Construction 400 North End Avenue Rental New Construction Construction 200 North End Avenue Condo New Construction Construction 55 Murray Street Condo Conversion Construction 19 Park Place Condo New Construction Construction 116 John Street Rental Conversion 2012 Construction 2 John Street (180 Broadway) Dorm New Construction Planned 20 Exchange Place, Phase III Rental Conversion 306 TBD Construction 99 Church Street Hotel/Condo New Construction 143 TBD Planned 6

7 $6,000 LOWER MANHATTAN RENTAL RATES Source: Citi-Habitats 2.5% LOWER MANHATTAN RENTAL VACANCY Source: Citi-Habitats $5, % $4, % $3,000 $2, % $1, % $- 0% Studio 1 BR 2 BR 3 BR Manhattan 20,700 people lived south of Chambers Street. The population is expected to grow another 8% over the next three years as 6 new buildings are scheduled for completion through These new additions include Forest City Ratner s Frank Gehry-designed 8 Spruce Street with 903 units; the last two development sites in Battery Park City with 282 condo units and 93 rental units; Werber Management s 40 Gold Street with 56 rental units; and a new 196-unit Pace dormitory at 2 John Street. Rental Market vacancy was less than 1.5% throughout and ended the year on par with the Manhattan-wide average at 1.21%. Rents increased 4-11% depending on unit type last year, and most units outpaced improvements citywide where rents increased 5-7%. Lower Manhattan s inventory is dominated by luxury product resulting in rents that are 10-20% higher than citywide averages, depending on unit type. Sales Market Sales prices improved in, particularly during which is the peak season in residential real estate, and ended the year at $1,006 per sf in, a 3% increase over last quarter and 7% over last year. The volume of transactions declined 6% from 552 in to 519 in. $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- AVERAGE RENTS Source: Citi-Habitats Studio 1 BR 2 BR 3 BR Manhattan LOWER MANHATTAN AVERAGE SALES PRICE ($/SF) Source: NYC Department of Finance, Downtown Alliance $1,250 $1,200 $1,150 $1,100 $1,050 $1,000 $950 $900 $850 $800 Manhattan 7

8 TOURISM AND HOTEL MARKET HOTEL MARKET SUMMARY Source: Alliance for Downtown New York, NYC & Company Occupancy Rates Average Daily Room Rates 68% 84% 89% 86% 77% 90% 78% 84% New York City 66% 84% 89% 86% 74% 90% 89% 85% $222 $242 $254 $264 $220 $274 $291 $303 New York City $212 $221 $222 $287 $209 $248 $245 $314 Tourism The number of visitors to s events and attractions reached 9 million people in, an increase of 14% over and 26% over. Citywide tourism also boomed and New York received a record-breaking number of tourists 48.7 million. ANNUAL VISITORS TO LOWER MANHATTAN Source: Downtown Alliance 9 million 8 million Three attractions saw record visitation levels. The 9/11 Memorial Preview Site recorded over 1.1 million visitors, attendance more than doubled at the Seaport Museum New York, and Governors Island saw a 61% increase over. Development 7 million 6 million 5 million Five hotels opened during, adding 1,153 rooms to s inventory. Openings included the 399-room Doubletree Hotel at 8 Stone Street, the 220-room W New York- Downtown, the 169-room World Center Hotel, the 112-room Holiday Inn Express, and the 253- room Andaz Hyatt Wall Street. These additions bring s inventory to almost 4,100 rooms in 18 hotels, three times the number of hotels pre-9/11. Two more developments are underway and scheduled to open in 2011: a new 95-room hotel on John Street, and the Embassy Suites (now closed for renovation) will reopen as the Hotel Conrad with the same number of rooms. This 90% 80% 70% 60% 50% OCCUPANCY RATES Source: Downtown Alliance, NYC & Company New York City HIGHLIGHTS OF HOTEL DEVELOPMENT Source: Downtown Alliance Hotel Address Rooms Date Open Status Andaz Hyatt Wall Street 75 Wall Street 253 Open Holiday Inn Express 126 Water Street 112 Open World Center Hotel 144 Washington Street 169 Open W Hotel & Residences 123 Washington Street 220 Open Doubletree Hotel 8 Stone Street 399 Open TBD 24 John Street Construction Four Seasons 99 Church Street Planned 8

9 will bring s inventory to 4,187 rooms and 19 hotels. Hotel Market Performance occupancy rates fluctuated throughout, while pricing improved steadily. Occupancy rates dipped in (the down season in tourism) and (immediately after major additions to inventory), but bounced back in and and ended the year on par with the city average at 84%, a 9% increase over last quarter and 2% decrease over last year. In comparison, citywide occupancy decreased 4% over last quarter and 1% over last year. s average daily room rate (ADR) was $303 in, a 4% increase over last quarter and strong 15% increase over last year. Citywide ADR also improved throughout and reached $314 at the end of, surpassing s ADR for the first time during the year. Throughout, 74 stores and restaurants opened south of Chambers Street, including 19 during. These additions brought Lower Manhattan s inventory to 447 restaurants and 626 stores and storefront services a total of 1,073 establishments serving s workers, residents, and visitors. AVERAGE DAILY ROOM RATES Source: Alliance for Downtown New York, NYC & Company $350 $300 $250 $200 $150 $100 $50 $0 New York City RETAIL MARKET Openings this year ranged from casual favorites to bars and restaurants, and specialty stores: The custom men s tailor My Suit opened at 30 Broad Street. Rents were $250 per sf. The Bailey Pub & Brasserie opened at 52 William Street. This is the second offering from the owners of Trinity Place Restaurant at 115 Broadway. Manhattan s only dog spa and hotel, Fetch Club, opened at 85 South Street. Casual eatery Chop t opened at 80 Pine Street. Rents were $75 per sf. Keg No. 229, a restaurant and bar, opened at 229 Front Street near the Seaport. Full-service restaurant and bar The Dark Horse opened at 17 Murray Street. Kim s Cleaners opened at 69 Murray Street. Rents were $60 per sf. Several other retailers signed leases in, and are opening soon: Duane Reade signed a 23,310 sf lease, taking the mezzanine floor at 40 Wall Street. Milk Street Café also signed a lease at 40 Wall Street, taking 27,000 sf on the ground floor. Casual eatery Fresh & Co. opened at 74 Broad Street. Rents were $112 per sf. Average asking rents along the Broadway corridor (from Chambers Street to Battery Place) were $133 per square foot in. 2 2 Source: CB Richard Ellis 9

10 OTHER REAL ESTATE NEWS Real Estate Tax Abatement Renewed On April 1,, the Governor and State Legislature extended the Real Estate Tax Abatement under the Commercial Revitalization Program for an additional four years, through March 31, The program offers $2.50 per sf in real estate tax abatement for up to 5 years to tenants that locate in pre-1975 buildings in and make required capital improvements to their space. Energy Program (LMEP) Renewed LMEP was extended in mid- for three years with a new expiration date of June 30, The program provides discounts on energy costs for 12 years to property owners in qualifying buildings. A building is eligible if the property owner invests at least 30% of the assessed value to upgrade the building. World Trade Center Progress 3 The Port Authority selected the Durst Organization as a major investor in 1 World Trade and the two parties finalized their agreement during. The Port Authority and Silverstein Properties also finalized an agreement on financing and construction of the World Trade Center Site. Under this agreement, the 2.6 million sf 1 World Trade Center will be completed in 2014 and the 1.8 million sf 4 World Trade Center is scheduled for completion in The site for Tower 2 will be built to grade in a way that preserves flexibility for future development of the office tower driven by market demand. Tower 3 will be built as a transit and retail podium by 2012 with construction of the office tower to follow when Silverstein Properties hits private-market milestones that include raising $300 million of private equity, pre-leasing 400,000 sf of the office tower, and obtaining private financing. When Silverstein Properties meets those milestones, the Port Authority, New York City, and New York State will provide public backstops that will allow Silverstein Properties to get additional financing. Meanwhile, development progress continued. Façade work began at 1 World Trade Center in November and steel has reached 56 floors past the half way mark; 4 World Trade Center stands 3 Construction timelines and estimates of completion are based on information provided by agencies overseeing projects. at 14 stories. Additionally, all steel is in place and 90% of concrete poured for the Memorial Museum, and 124 trees have been planted at the Memorial Plaza. All 54 Calatrava arches are in place at the World Trade Center Transportation Hub, and the Development Corporation completed deconstruction of 130 Liberty Street to street level in January The final below-grade excavation and restoration of the sidewalk are expected to be completed by the end of March. Finally, Mayor Michael Bloomberg, former Governor David Paterson, and Assembly Speaker Sheldon Silver appropriated $100 million from Development Corporation funds to support the Performing Arts Center (PAC) at the World Trade Center. WORLD TRADE CENTER SITE MAP 1 WTC WTC MEMORIAL PAC Goldman Sachs Headquarters 2 WTC PATH 3 WTC 4 WTC The 2.1 million sf, 43-story headquarters at 200 West Street was completed in early and Goldman Sachs consolidated its operations there throughout the year. The building holds 9,000 workers at full occupancy. Fiterman Hall Construction broke ground at the end of. By the end of, steel reached the 14 th floor and concrete was poured to the 4 th floor. The building is scheduled to top out at 15 floors in March and be completed in The new CUNY facility will replace the structure that was irreparably damaged on 9/11, housing classrooms, faculty offices, a café, art gallery, computer labs, and a student lab for the Borough of Manhattan Community College. 10

11 Fulton Transit Center Work at the Fulton Street Transit Center continued throughout. The southbound R train, William Street 2/3, and tunnel between the A/C and 4/5 are all scheduled to open in The entire project including the main structure is still on track to be completed in FULTON TRANSIT CENTER will be completed in March 2011, and work will continue on the rest of the project, which stretches from the Whitehall Ferry Terminal to East River Park creating dedicated walking and bike trails, plantings, and seating along the East River. The entire $150 million project is scheduled to be completed in Louise Nevelson Plaza and Liberty Street Reconstruction Louise Nevelson Plaza was completed in December and a reopening ceremony will take place in early The refurbished triangular park features more space, additional trees, and enhanced lighting. The Shadows and Flags sculpture, by Louise Nevelson, has been rehabilitated and reinstalled. This work also marks the end of the Liberty Street Reconstruction Project. Photo Courtesy of MTA Capital Fulton Street Reconstruction Progress continued in replacing utility lines and improving the streetscape along Fulton and Nassau Streets. Phase I on Fulton Street (from Church Street to Gold Street) was completed at the end of, and Phase II broke ground in. This phase runs along Nassau Street (from Ann Street to Spruce Street) and Fulton Street (from Ryders Alley to South Street). The third and final phase began in early It runs along Nassau Street (from Maiden Lane to Fulton Street), Pearl Street (from John Street to Fletcher Street), and Gold Street (from Fulton to Spruce Street). The entire project is scheduled to be completed in East River Waterfront - South of the Seaport The New York City Economic Development Corporation neared completion on the pilot portion of the East River Waterfront, which runs from Wall Street to Maiden Lane. This portion DeLury Square Park DeLury Square, at the intersection of Fulton and Gold Streets, opened in November. The 8,850 sf park includes a waterfall, benches, and landscaping. A streetscape project linking the park to Pearl Street will begin in early Peter Minuit Plaza Landscaping at Peter Minuit Plaza was completed in December. Further park planning and additions to the canopy will be made throughout 2011, and the plaza is currently scheduled to open in late spring The Downtown Alliance installed a free public Wi-Fi hotspot there in early The Battery Conservancy made substantial progress on the construction of a pavilion, designed by famed Dutch architect Ben van Berkel, and made possible with major funding from the government of the Kingdom of the Netherlands. The pavilion and plaza are scheduled to open in late spring 2011 and will feature a visitor information booth and restaurant. Visit for additional publications on the real estate market and economy. Documents include a complete list of residential and hotel developments, available retail spaces and a summary of leasing incentives. If you have questions or require additional information, please contact RESEARCH@DOWNTOWNNY.COM. 11