Lower Manhattan Missing Out on Nearly $200 Million Annually
Lower Manhattan, home of 30,000 young professionals, misses out on almost $200 million annually as its thriving demographic splurges on dining and entertainment elsewhere due to a lack of options in the area, The Alliance for Downtown New York reported earlier this month.
Young, highly educated residents, aged between 18-44, with considerable volumes of disposable income — splash $1,000 monthly on food, drinks, and entertainment. This has caused a considerably high demand for brunch spots, bars, and entertainment venues in the neighborhood. Landlords need to act quick in creating more youth-friendly spaces.
The ultra-commercial district — though markedly impacted by the 9/11 attacks — has seen remarkable residential growth. Reputed for its family-friendliness, the territory south of Chambers Street has doubled in terms of non-family households in 15 years, framing it as one of the swiftest-growing neighborhoods in New York City. The rental inventory, peppered with eco-friendly buildings, is expected to increase by a third by 2020.
Young professionals currently make up more than 62% of Lower Manhattan’s overall population — boasting a higher concentration than Greenpoint and the East village — on par with Williamsburg. With careers mainly in marketing, media, and technology, the median income for Lower Manhattan’s young professionals is $161,739, leaving them with plenty for leisure spending.
“With strong buying power and plentiful leisure spending, this key demographic can increasingly drive Lower Manhattan’s rapidly transforming retail and dining scene,” the organization wrote. “There are opportunities to keep more spending here.”
The report suggested that landlords should create more spaces with traits of a 24/7 neighborhood to keep up with the group’s “work hard, play hard” groove.