Q1 2026 Real Estate Market Report

LOWER MANHATTAN REAL ESTATE MARKET REPORT

While Lower Manhattan’s office market began 2026 with subdued leasing activity compared to last year’s strong performance, it still outperformed the five-year quarterly average. But the biggest recent news in the downtown office market came from the World Trade Center, where Silverstein Properties and the Port Authority inked an eagerly anticipated deal with American Express to build 2 World Trade Center. This project will complete the commercial rebuilding of the World Trade Center and provide a new corporate headquarters for one of the country’s most iconic businesses. The financial services giant will join several other prominent Lower Manhattan tenants, including SHoP Architects and McKinsey & Company, who recommitted to downtown in Q1 by signing renewal or expansion leases. Employees at these firms will have more options for eating and shopping downtown as 20 new businesses opened in Q1, including the longawaited Lower Manhattan location of popular Flushing food hall Golden Mall. And Lower Manhattan’s hospitality sector continued to perform well as the district gears up to host an expected influx of visitors this spring and summer for the FIFA World Cup and America250.

Q1 Leasing Activity Cools But Continues to Outperform Five-Year Quarterly Average

Lower Manhattan’s first quarter leasing ended at 908,000 sq. ft., which marks a 42% drop over the quarter and 36% decrease compared to Q1 2025. While a substantial fall off from last year’s record leasing totals, Q1 leasing was still 12% above the five-year quarterly average and was the second highest Q1 total since the beginning of the pandemic.

Small to midsize leases drove most of downtown’s activity in contrast to Q1 2025 when a single large lease accounted for much of the quarter’s activity. In fact, only one lease

Lower Manhattan Annual New Leasing Activity, 2019-2026

Source: CBRE

908,000 Square Feet Of New Leasing In The First Quarter

exceeded 50,000 sq. ft. — technology firm TeamGuard, which signed a 51,220 sq. ft. deal at 120 Broadway. The next largest leases were both signed for 44,000, sq. ft., private equity firm Energy Capital Partners at 1 World Trade Center and consulting giant McKinsey & Company at 3 World Trade Center

This also marked the first time in eight quarters that absorption was negative at 53,000 sq. ft.. Sizable spaces that entered the market included 157,000 sq. ft. of direct space at 200 Liberty St. and 92,000 sq. ft. at 300 Vesey St. (currently sublet by Momentum Worldwide).

The remaining Manhattan submarkets, Midtown and Midtown South, also experienced declines in market activity compared to last quarter. Midtown ended the first quarter with 4.2 million sq. ft. of leasing, 19% below Q4 2025 while Midtown South finished the quarter with 1.9 million sq. ft. of total leasing activity, translating to a 17% decline. But long term, market conditions continue to improve as both districts saw increases relative to their five-year average. This holds true for the Manhattan office market as a whole, where there were quarterly and annual declines but also continued progress relative to the postpandemic economy.

Six Businesses Relocate to Lower Manhattan

Six businesses relocated to Lower Manhattan in Q1 totalling 115,063 sq. ft., which represents a 50% increase over the year but a 57% decrease over the quarter.

As mentioned above, TeamGuard, an AI-driven cybersecurity and threat detection company moved to 120 Broadway from Midtown South. The next largest lease came from Garner Health, a healthcare navigation platform, which signed a 32,569 sq. ft. lease at 1 Liberty Plaza. BFC Partners, a real estate development company based in NYC, moved into 13,758 sq. ft. of space at 17 State St., leaving its former Brooklyn office. The top three locations accounted for 85% of Lower Manhattan’s relocation activity.

Professional Services Leads Leasing in Q1

Professional Services contributed the largest share of leasing in Q1, taking up 30% of the leasing total. As mentioned, McKinsey & Company signed a 44,000 sq. ft. expansion lease at 3 World Trade Center. The next largest lease in this sector came from Jacobs Civil Consultants, an engineering consulting firm, which signed a 30,500 sq. ft. lease at 55 Water St.

The FIRE sector (Finance, Insurance, and Real Estate) accounted for 23% of the overall leasing activity. Energy Capital Partners, a private equity firm that invests in energy infrastructure, moved into a 44,000 sq. ft. space at 1 World Trade Center.

TAMI (Technology, Advertising, Media, and Information) accounted for 21% of overall leasing in the area. Two tenants anchored its leasing total. The first was TeamGuard and the second was Dandy, a healthcare technology firm producing innovative dental products, which took 37,400 sq. ft. of space at 22 Cortlandt St.

2 WTC Rendering

2 WTC: A New Landmark for Lower Manhattan

Silverstein Properties and the Port Authority announced plans for the development of 2 World Trade Center to be next headquarters of American Express, a major milestone in Lower Manhattan’s recovery from the tragedy of Sept. 11th. The nearly 2 million sq. ft. tower will serve up to 10,000 employees, completing the commercial redevelopment of the World Trade Center campus. The building will spans 55 floors, amounting to 1,226 feet in height.

Developed by Silverstein Properties on land leased from the Port Authority of New York and New Jersey, with base design by Foster + Partners and brokerage by Cushman & Wakefield, the project is expected to be completed in 2031. A signature feature is its integration of nature into the vertical workplace, with three terraces and six corner gardens bringing greenery high above the streets of Lower Manhattan. Beyond its architectural ambition, the development reaffirms American Express’s long-standing investment in the district and signals continued momentum for Lower Manhattan as a premier destination for world-class corporate headquarters.

Beyond the tower itself, the project will expand Lower Manhattan’s office inventory, generate significant tax revenue, and support thousands of jobs both during construction and long after its doors open. It also marks the first major new office construction downtown in over six years, signaling renewed confidence in the Lower Manhattan office market.

Lower Manhattan Top Leases, Q1 2026

Lower Manhattan Vacancy Increases Marginally After 8 Quarters of Improvement

Downtown’s overall vacancy rate finished Q1 at 22.3%, a slight 0.1% increase from Q4 2025, which makes it the first vacancy increase in seven quarters. This comes at the same time that the distirct recorded negative absorption. But even with this slight increase, the overall vacancy rate is still the second lowest quarter-end rate since Q2 2022.

The district’s Class A rate finished Q1 at 21.8%, an increase over the quarter but identical to the Q1 2025 percentage. Much like the overall rate, the Class A rate has made only slight progress over the past few years.

On the other hand, Midtown and Midtown South’s vacancy rates saw significant improvements in Q1. Midtown reached 18.3%, making it the first time since 2020 that any of the three submarkets have posted rates below 20%. And Midtown South, which still leads Manhattan with a 22.8% rate, still saw substantial vacancy reduction over the year and quarter.

Class A Vacancy Rates by Submarket

Overall Vacancy Rates by Submarket

Overall and Class A Office Rents Rise Over the Quarter and Year

Lower Manhattan’s overall asking rent increased during the first quarter to $56.67, following years of declining prices. Not only does this translate to nearly a full percentage point increase over the quarter, but a 3% year-over-year growth rate as well. Moreover, this quarter-end figure surpasses any recorded overall rent figure since 2022.

The district’s Class A rent finished Q1 at $61.77, marking a quarterly and annual increase of 0.9% and 4.4%, respectively. This quarter-end rent figure exceeded all other Class A rent values dating back to 2021 and its 4.4% growth rate outpaces any year-over-year change since Q1 2019.

Midtown rent values increased for the second quarter in a row, maintaining a relatively flat trajectory and finishing Q1 at $76.96. Meanwhile, at $86.57, Midtown’s Class A rent is the highest it has been since 2008.

Midtown South saw its overall asking rent decline over the quarter by 3.2% to $80.94. But even with this drop and the submarket’s volatility, the district’s overall rent trajectory has shown consistent growth over the past three years.

Source: Cushman & Wakefield

Source: Cushman & Wakefield

$104.38

First Quarter Property Sales

Office Building Sales:

• 2 World Trade Center: American Express has announced plans to build and solely occupy a new 55-story global headquarters at 2 World Trade Center, a nearly 2 million sq. ft. project slated for completion in 2031. Designed by Foster + Partners, the sustainable, LEED-certified tower will house 10,000 employees and will complete the commercial rebuilding of the World Trade Center. It is expected to contribute over $6 billion to the New York State economy.

• 140 Broadway: Union Investment is looking to sell 140 Broadway – 1.2 million sq. ft. – for $400 million.

Office Refinancing:

• 1 NY Plaza: Brookfield Asset Management secured a twoyear CMBS loan extension for One New York Plaza to January 2028, reducing the balance by $25 million to $810 million after the tower entered special servicing.

• 225 Liberty Street: Brookfield is refinancing its 225 Liberty Street tower with an $800 million CMBS loan and $172.5 million in cash equity, successfully securing the deal despite higher interest rates and a major tenant bankruptcy within the $4 billion flagship complex.

Residential Sales:

• 250 Water Street: Privately owned developer Tavros, alongside equity partner Atlas Capital, has closed on the purchase of 250 Water Street for $143 million—a significant discount from previous valuations—and plans to expand the mixed-use project to include 600 rental units, 25% of which will be designated as affordable housing.

• 7 Dey St.: SL Green Realty is in contract to sell 7 Dey St., a 34-story rental tower to a newly formed real estate investment trust called GO Residential for $223 million.

• 1 Park Row: Circle F Capital has sold 1 Park Row to Eenhorn, a real estate investment and management company, for $93 million. The developer exited the project a year after launching sales at the 23-story building. Prices for condos start at $850,000.

Residential Financing:

• 101 Greenwich Street: Quantum Pacific and Metro Loft Management received $220 million in construction and redevelopment debt from Apollo for 101 Greenwich St.

• 40 Exchange Place: GFP Real Estate secured $192 million of construction financing to convert 40 Exchange Place

into a residential building.

• 61 Broadway: RXR has secured $420 million from Apollo Global Management to convert 61 Broadway into a 796-unit residential tower. Construction is set to begin imminently, with a 2028 completion target that includes a mix of luxury amenities and 200 units reserved for affordable housing, requiring that renters do not make more than 80% of the area’s median income.

Mixed Use:

• 75-83 Nassau Street: Watermark Capital Group recently signed a long term lease agreement to take control of the vacant lot at 75-83 Nassau St.. Montgomery Street partners is the lessor.

250 Water Street

Barcade - 10 Cortlandt St.

RETAIL

Lower Manhattan welcomed 20 new retail establishments to the neighborhood during the first quarter of 2026. Over two thirds of the openings consisted of F&B establishments. One personal and business service location opened and five shopping locations opened as well. Some notable openings include:

• Golden Mall, a popular pan-asian food hall in Flushing, opened at 47 Broadway

• Cafe Fleuri, a Southern French bistro, opened at 109 Washington St.

• Xi’an Famous Foods, a Chinese food chain, opened a new location at 62 Fulton St.

• Honeybrains, a healthy, fast-casual restaurant, opened at 136 Church St.

• Loong Ramen, a new ramen spot, opened at 21 South End Ave.

• Barizi, a home goods store, opened at the Oculus.

• Kuona Vision, a luxury glasses store and vision care center, opened at 115 Nassau St.

Sadly, eight retailers closed in the first quarter, including:

• H&M at 18 Church St

• Malibu Farm at Pier 17

• Ferragamo at Brookfield Place

• Bottega Veneta at Brookfield Place

Looking ahead, 22 new retail locations are coming soon. Notable additions include:

• Six Coasts by Smorgasburg, a 32,000 sq. ft. waterfront restaurant featuring seasonal seafood, tropical cocktails and cultural programming inspired by six coastal identities across the Americas, will open on Governors Island in May 2026.

• Willett’s NYC at the Seaport will span two floors and contain multiple bars and restaurants.

• Uniqlo at Westfield WTC (in the former H&M space) is set to open in 2026.

• The Ellis, a restaurant in the newly opened Wagner Park, is set to open in 2026.

• The Balloon Museum, a ballon-themed museum, is set to open in summer 2026 at Pier 17.

Golden Mall at 47 Broadway

HOTELS + TOURISM

Lower Manhattan Attracts 10.3 Million Unique Visitors in 2025

Lower Manhattan continues to draw significant visitation in the post-pandemic era. The district welcomed 10.3 million unique visitors (defined as any Lower Manhattan visitor who neither works nor lives downtown) in 2025, maintaining a strong recovery from the pandemic years. Of those, 8.1 million were tourists (defined as people living outside the NYC metro area). While these figures represent decreases from 2024’s 11.3 million unique visitors and 9.3 million tourists, respectively, they remain well above the levels seen during and immediately after the pandemic.

The share of unique visitors coming from NYC remained steady at 12%, consistent with 2024. The share of domestic visitors from beyond the NYC metro area grew to 27%, up from 24% in 2024, suggesting increasing interest from travelers across the country. The share of visitors from the NYC suburbs held steady at 5%.

International tourists continued to represent the largest share of overall visitation at 56%, though this reflects a decline from 59% in 2024. Despite this dip, the district’s international reach remains close to 2019’s pre-pandemic share of 61%. Countries with the highest visitor share were again in Western Europe — the United Kingdom, followed by Germany, France and Italy. Notably, Canada dropped from a top-four feeder country to eighth place, while Mexico and Brazil also featured prominently.

Lower Manhattan Hotels Post RecordBreaking Q1 ADR and Occupancy

Lower Manhattan recorded an Average Daily Room Rate (ADR) of $332 in Q1, making it the neighborhood’s highest first quarter ADR on record. In fact, this Q1 figure is so high that it represents a 44% increase compared to last year’s Q1 figure, which held the previous first quarter record. Traditionally, ADR for Q1 is lower than the rest of the year as many tourists slow the pace of expenditures following the holiday season. But this is not true of Q1 2026: the current first quarter record is actually higher than the Q3 record and only $1 less than the Q2 record.

Hotel Occupancy in Lower Manhattan and New York City

Source: CoStar/STR

Hotel Average Daily Room Rate (ADR) in Lower Manhattan and New York City

Source: CoStar/STR

This trend holds across the entire Manhattan hotel market, where ADRs in Midtown reached $411. Midtown’s Q2 and Q3 record rates, which are historically higher, lag by roughly 12%. Even the rest of the NYC market posted its highest Q1 rate in five years.

Beyond ADR, Lower Manhattan’s occupancy rate also set a Q1 record of 86% — 9% higher than last year and 27% higher than 2019. The Midtown market also saw its Q1 rate finish at 85%, on par with its prepandemic rates. Before this most recent quarter, post pandemic rates in Q1 topped out at 74%. Midtown’s current occupancy exceeds that figure by 11%.

This occupancy trend manifested across the city as well, where the city’s Q1 rate reached 77% — the highest Q1 rate since the beginning of the pandemic.

Lower Manhattan Hotel Inventory and Development

The current hotel inventory in Lower Manhattan stands at 7,928 rooms across 41 hotels. No new hotels opened in the first quarter. There are over 172 hotel rooms across three hotels under construction or in development in Lower Manhattan. See the chart above for the curent pipeline. $332

Lower Manhattan Hotel Average Daily Room Rate

RESIDENTIAL

Inventory and Development

Lower Manhattan has 37,283 units in 351 residential buildings. There are 8,987 units in 32 buildings under construction or planned for development, with about 65% slated to be rental units while 35% will be condos. 4,211 units are currently under construction. Office-to-residential conversions account for 68% of planned or under-construction residential units.

One new project, 7 Platt St, was completed in Q1 2026. Also, two new projects were announced in Q3. Additional details on new and upcoming projects can be found below.

Recently completed projects include:

• 7 Platt St.: The ground up construction project containing 250 units has finally received its certificate of occupancy. The affordable housing lottery has launched for building, with 75 units available for residents earning 70% to 130% of the area median income (AMI), ranging from $68,126 to $227,500. Monthly rents range from $1,819 for studios to $4,484 for two-bedrooms, and applications must be submitted by June 8, 2026 via NYC Housing Connect.

Two conversion projects also entered the pipeline:

• 80 Broad St.: Announced during Q1, Broad Street Development, the owner of the 37-story office building at 80 Broad Street, has filed plans with the New York City Department of Buildings to convert the property into a residential building with 326 units.

• 61 Broadway: RXR is eyeing a complete conversion of 61 Broadway, transforming the building into 796 new units.

New Construction Pipeline:

• 50-58 Cliff St.: Announced during Q1 2026, Trinity Church, one of New York’s largest landlords, unveiled plans to build 120 permanently affordable apartments near the South Street Seaport. The project is expected to cost $70 million and will sit on land leased to the nonprofit Settlement Housing Fund.

• 8 Carlisle St.: After excavation of 8 Carlisle St. was paused for almost a year, the site of the 64-story residential skyscraper has begun its ascent. And according to its most

recent update, construction is rising quickly. 8 Carlisle is a 64-story, 789-foot residential skyscraper at the corner of Washington and Carlisle Streets in the Financial District, which will yield 462 residential units and 7,000 square feet of ground-floor retail upon completion. Designed by Handel Architects and developed by Grubb Properties and Pink Stone Capital, the tower is expected to complete sometime in the second half of 2027.

• 250 Water St.: During Q3 2025, real estate developer Tavros acquired the land at 250 Water St. for $143 million from Seaport Entertainment Group, much less than what SEG bought it for in 2018. Plans to expand the mixed-use project to include 600 rental units, 25% of which will be designated as affordable housing.

• 21 Park Place: Plans were filed for a new high-rise residential building at 21 Park Place, the former Tent & Trails building that collapsed in 2018.

Office to Residential Conversion Pipeline:

• 64 Fulton St.: Flatiron Real Estate Advisors is looking to convert the 125-year-old 64 Fulton St. into 49 residential units spanning floors 3–11. The current plan calls for the units to consist of 18 studios, 22 one bedrooms and eight two bedrooms with two loft tenants remaining. The project will benefit from the city’s 467-m tax abatement program to make 12 of the units affordable.

• 222 Broadway: GFP Real Estate and Texas Pacific Group (TPG) are converting the 31-story, 756,138 sq. ft. office building into 798 apartments. The project is estimated to cost $43.6 million. GFP purchased the property from Deutsche Bank’s asset management arm for $150 million, which is less than a third of the $500 million the bank paid for the building in 2014. As of Q2, the project is now under construction. It will house 798 rental apartments and 40,000 sq. ft. of commercial space. A sidewalk shed has been assembled along the first story as crews begin work on the façade from suspended scaffolding rigs.

• 111 Wall St.: Nathan Berman’s Metro Loft Management and InterVest have sealed a roughly $867 million construction loan to convert the office tower at 111 Wall St. to residential use. The 1.2 million sq. ft. building will be transformed into 1,500 rental units. Construction on the building has

commenced, with the first units anticipated to become later in 2026.

• 77 Water St.: The Vanbarton Group agreed to purchase Sage Realty’s property at 77 Water St. for approximately $95 million. They are converting the 26-story office building into up to 600 residential units.

• 80 Pine St.: Joseph Hoffman’s Bushburg has bought 80 Pine St., a 1.2 million sq. ft. office building, for $160 million. According to permits from the Department of Buildings, the developer plans to convert the 38-story office tower into a partial residential building. The building’s exterior windows will also be replaced, and there will be parking for 260 bicycles. The estimated construction cost is around $40 million. Bushburg secured a $320 million construction loan for the project. Bridge City Capital and Deutsche Bank provided the financing for Bushburg’s efforts. The building is projected to contain 713 rental apartments.

• 2 Wall St.: 2 Wall St. is undergoing a significant transformation. The owner, Fieldston Capital, is planning to convert the upper floors of the 21-story building into 169 residential apartments with a pool and golf simulator. The project is currently under construction.

• 40 Exchange Pl.: GFP Real Estate is set to begin an office-to-residential conversion of 40 Exchange Pl., a 20-story Classical Revival building in the Financial District, transforming its 300,000 sq. ft. into 382 rental apartments with groundfloor retail and a portion dedicated to affordable housing. The developer has secured $191.5 million in construction financing and plans to utilize federal and state Historic Rehabilitation Tax Credits along with NYC’s 467-m program, which provides a 35year tax abatement on the property.

• 5 Hanover Sq.: David Werner Real Estate Investments and developer Sam Fisch Development secured $61 million of acquisition financing coming from 99c to purchase 5 Hanover Sq. Given Werner’s recent track record of converting aging office buildings into apartments, a partial residential conversion is likely. 5 Hanover Sq. is poised to be part of Werner’s growing portfolio of discounted office assets being repositioned for residential use.

• 30 Broad St.: The Continental Bank Building at 30 Broad St. is now set for a residential conversion. The building would contain 521 rental units spanning 405,399 sq. ft. with 4,193 sq. ft. of retail space on the ground floor, occupied by two commercial units.

• 100 William St.: Bushburg is reimagining 100 William St.

into approximately 430 residential apartments.

• 1 Maiden Ln.: Jeff Sutton’s Wharton Properties is looking to convert The Cushman Building at 1 Maiden Ln. into 12 apartment units, according to plans filed with the Department of Buildings.

• 100 Wall St.: Developers David Werner and Lloyd Goldman’s BLDG Management Co. plan to convert part of the 465,000 sq. ft. office building at 100 Wall St. into apartments, according to New York City Department of Buildings filings.

• 75 Maiden Ln.: CSC is planning a partial office-toresidential conversion at 75 Maiden Ln., according to initial plans filed with the New York City Department of Buildings.

• 14 Maiden Ln.: Nine floors of 14 Maiden Ln. are being converted to residences and a retail space.

• 101 Greenwich St.: Idan Ofer’s Quantum Pacific Group and Nathan Berman’s Metro Loft Management acquired the 26-story office tower at 101 Greenwich St. in February and recently filed plans with the New York City Department of Buildings to convert the building into 614 units of housing.

• 40 Fulton St.: Blue Fin Equities’ Samuel Fisch filed conversion plans for the 234,553 sq. ft. building at 40 Fulton St., according to New York City Department of Buildings records. The filing calls for the 28-story, red brick facade building to be converted into a 30-story residential tower with 169 units.

• 99 Washington St.: Hawkins Way Capital is converting the former 99 Washington St. Holiday Inn into a 650-bed multi-institution student dorm — serving schools like Pace, NYU, Baruch, Hunter and the New York Film Academy. Partial occupancy is already underway as construction continues through fall 2026 following the building’s bankruptcy, foreclosure issues and brief use as a migrant shelter.

100 Wall Street

130 Liberty Street

Lower Manhattan Condo Prices Dip Slightly As Manhattan-Wide Median Climbs To Near-Record Highs

Lower Manhattan’s median condo sales figure inched down over the quarter to $1.23 million, a 2.2% decline. Though it is only marginal, this makes it the second consecutive quarter of decline. The quarter-end figure still exceeds any median value within the Q3 2023 - Q1 2025 timeframe. Before that, median sales had increased every quarter since Q3 2024.

Q1 ended with 79 deals made, a 19.4% fall from last quarter but above the 2023-2025 period, which averaged 62 deals per quarter.

The median sales figure for Manhattan as a whole finished at an identical $1.23 million and finished above its quarterly and yearly figure by 8.9% and 5.2%, respectively. In fact, Manhattan’s quarter-end figure is the second highest figure since 2019.

Median Residential Sales Price

Source: Miller Samuel

$1,225,000

Median Sale Price in the First Quarter

Median Residential Rental Price

Source: Miller Samuel

MAJOR PROJECTS UPDATE

Pace University

In December 2022, Pace announced plans to renovate One Pace Plaza, adding new academic spaces, a modernized residence hall and a new performing arts center. The renovation will include the reconstruction of the lower floors of One Pace Plaza East and upgrades to the dormitory building at 182 Broadway. Construction is expected to be completed in 2026.

The university recently announced the formation of the Sands College of Performing Arts, as it has just finished construction. It is housed within a new performing arts center at One Pace Plaza, which contains a 450-seat proscenium theater, a 200-seat flexible theater and a 99seat black box theater. Rob and Pamela Sands gave a $25 million donation, which is part of a fundraising campaign that includes private donations and $30 million in state and federal funding.

The new building serves as a replacement for Pace’s 50-year-old tower at One Pace Plaza East. 15 Beekman St. is the third property SL Green has built for Pace in the neighborhood. The developer previously built dorm buildings at 33 Beekman St. in 2015 and 180 Broadway in 2013. The building yields 213,084 sq. ft. and stands 338 feet tall. It is alternately addressed as 126–132 Nassau St.

As of June 2025, major milestones included completing excavation and foundation work for the expanded Schimmel Theater, installing its new gridiron system and placing 80% of the building’s infrastructure using one of the East Coast’s largest cranes. Double-height spaces for the Garden Theater, black box theater and dance studios are now formed, while renovations to Maria’s Tower modernize residential spaces.

Transportation Infrastructure

Street Reconstruction

Greenwich Street reconstruction, between Barclay and Chambers streets, began in early 2022 and will be completed in spring 2027; the adjacent sidewalks at 240

Greenwich St. will also be redone in tandem. Vesey Street reconstruction, between Church Street and Broadway, began in September 2022 and will be completed in summer 2026. Nassau Street reconstruction, between Pine Street and Maiden Lane, will be completed in summer 2026. These projects will replace all underground infrastructure, including water mains, sewers, electric, gas and other utilities, as well as construct new streets and curbs.

Water Street Streetscape Improvements

The city began work on the streetscape and public realm enhancement project along the Water Street corridor in May 2021. The $76.6 million project will transform two temporary public plazas at Coenties Slip and Whitehall Street into permanent public spaces featuring new landscaping, seating and concessions. The project also includes new street trees, rebuilt sidewalks and enhanced pedestrian safety from Whitehall Street to Old Slip. The project is expected to be completed in spring 2027.

Climate Resiliency

Resilient Infrastructure

Work continues on parts of the Financial District and Seaport Climate Resilience Master Plan, a resilient infrastructure plan released in 2021 to protect Lower Manhattan from future flooding. The master plan is part of the larger Lower Manhattan Coastal Resiliency strategy, with active capital projects in Battery Park City, the Battery and Two Bridges. The plan calls for the creation of a twolevel waterfront park that extends the shoreline of the East River by up to 200 feet.

The upper level would be elevated by 15 to 18 feet to protect against severe storms, while doubling as public open space. The lower level would be a waterfront esplanade raised three to five feet to protect against sea level rise, while offering access to the East River shoreline

Governors Island

New York Climate Exchange

New York City selected a consortium led by Stony Brook University to develop a $700 million, 400,000 sq. ft. climate research and development campus on Governors Island that will be called the New York Climate Exchange. The campus will include two new classroom and research buildings, student and faculty housing and university hotel rooms. The campus is expected to host 600 college students, 6,000 job trainees and 250 faculty members and researchers. In addition to Stony Brook University, the development consortium includes IBM, Georgia Institute of Technology, Pace University, Pratt Institute and Boston Consulting Group. Governors Island was rezoned in 2021 to allow for the campus. The Trust for Governors Island has expanded ferry service, running every 15 minutes, and added New York City’s first public hybrid-electric ferry.