The Evolution of Lower Manhattan: Office-to-Residential Conversions.
The excess supply of office space was one of the dominant economic and fiscal themes emerging during the post-pandemic recovery. Throughout 2021–2024, there were consistent concerns that New York City would become a “ghost town” and that shrinking tax revenues would cripple the city’s budget.
Fortunately—and perhaps unsurprisingly—these “doom scenarios” have not materialized. Instead, the repurposing of older, obsolete office space into housing has kicked into high gear in Lower Manhattan. Recent policy changes, shifting market values, and a pressing housing shortage have accelerated this activity, moving conversions from a niche solution to a mainstream real estate strategy.
After nearly five years of Downtown landlords struggling to fill vacancies, the market is finally shifting in their favor. Approximately 9 million square feet of office space has been taken off the market, prompting hundreds of tenants to relocate and tightening the remaining supply.
Below is a list of properties that have either been converted or are slated for conversion.
| Property Address | Square Footage |
|---|---|
| 25 Water St. | 1,044,351 |
| 85 Broad Street | 1,007,569 |
| 111 Wall St. | 990,250 |
| 222 Broadway | 756,138 |
| 110 Maiden Ln. (80 Pine St.) | 665,975 |
| 61 Broadway | 650,740 |
| 77 Water St. | 541,568 |
| 160 Water St. | 525,000 |
| 100 Wall St. | 463,664 |
| 55 Broad St. | 406,025 |
| 80 Broad Street | 336,000 |
| 40 Exchange Place | 300,000 |
| 90 John St. | 130,550 |
| 1 Wall Street | 127,000 |
| 17 Battery Pl. | 118,932 |
| 2 Wall St. | 109,876 |
If you would like more information on the downtown office market or any aspect of the New York City Commercial Real Estate Market, please feel free to contact me:
Paul Walker
Senior Vice President
212-984-7117
Paul.Walker@cbre.com
About the Author
Paul Walker
As a commercial real estate broker specializing in all facets of office leasing for over 30 years, I’m also a proud native New Yorker with a deep love for this city. My commitment to my community is reflected in my founding of two real estate charity events and consistent involvement in professional organizations. Outside of work, I enjoy live music, movies, basketball, tennis, podcasts, and a continuous pursuit of knowledge, especially regarding history and the fascinating story of New York.