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Downtown Manhattan, the Neighborhood it Was and the Neighborhood it Still Is
By Helen Torres

Children's laughter, and concerts in the park; aspects of life not expected from the capitalist financial district of New York City. Nevertheless, these are the echoes of things that were, and things that are again.

Downtown Manhattan is not just New York City's financial district, it is a vibrant community. Before the towers fell, downtown neighborhoods like Tribeca were becoming the next Manhattan 'hotspots.' Renters and homebuyers were moving to lower Manhattan, closer to their jobs, and into a neighborhood that was becoming more family friendly.

The attacks have changed the dynamics of the neighborhood, however realtors remain optimistic about the rebuilding of the downtown area, even in the face of some tough odds. There is still a fear many people hold with going downtown, many reminders of the tragic day linger in the neighborhood with ground zero itself becoming a tragic memorial to what once was. The attacks of September 11th of this year have resulted in speeding the country into an economic slowdown. Massive layoffs and declining consumer confidence have contributed to a fear that the Manhattan private real estate market will be taking a downward turn, as an already expected recession has been exasperated.

"Buyers are hesitant," reported Larry Sicular of Brown Harris and Stevens, "and some have backed out or re-negotiated previously negotiated transactions."

The immediate impact of the attacks was a loss of security for New Yorkers. People did not feel safe in their own homes, and in their careers. Over 25,000 people have reported losing their jobs to the State Department of Labor, as a result of the attack, pointing to a highly unstable job market.

Annual bonuses, for corporate professions, which according to Corocon publications account for 6 to 7 percent of business, will be less than usual if they are rewarded at all as a result of the attacks. These bonuses were often spent as down payments for homes, or larger apartments. However, now more people are likely to save their money, feeling uncertain as to what the future holds.

In this type of atmosphere it is no wonder that the New York City real estate is heading for some sort of decline. However, realtors do not fear the end of the world when it comes to real estate.

"Any type of change is good in this industry," said Anthony DeGrotta, a Manager and Associate Broker with Citi Habitats New York, "whether people are moving out or in we have something to do with it."

DeGrotta manages the office of Citi Habitat located on 100 John Street, mere blocks away from where the towers of the World Trade Center once stood. Most apartment buildings that were in the vicinity did not sustain any real structural damage. Phone lines and cable lines have been rewired and repaired. The buildings look even better than before, having been cleaned of soot and debris.

The change in the neighborhood, according to DeGrotta, has been more dramatic in the rental market than in the homeowner market. There has been an increase in the number of apartments available for rent, and as a result rental prices have started to decrease.

Do people still want to live in a neighborhood where so much destruction has taken place? The World Trade Center was a mecca for this community. Events, stores, and trains that were in the Center were close and accessible.

"The World Trade Centers were a big part of this neighborhood," DeGratto agrees, "but we still have the South Street Seaport and many businesses that were not destroyed."

People who live in other parts of Manhattan may not find that rents are decreasing, but are in fact increasing. Residents may be surprised to find out that a small apartment in a building with no amenities, rents for the same price as a 2-bedroom with full amenities, downtown. More space, for less money, and no matter what state the economy is in, people will always go for a bargain; especially in Manhattan.

Though sales have nonetheless remained stagnant, at this point in time it would be cheaper to buy a home because of interest rate cuts.

Interest rates have reached their lowest point in year at 6.85%. According to HSH Associates, a leading financial publisher, compared to a year ago, loans are $157 less per month, and you can qualify for them with $6, 744 les income per year. The lower rates give more people a shot at qualifying for given levels of financing--and that means more people can borrow additional dollars.

Most brokers and analysts report that the real estate market will handle the coming economic and political problems in stride. Was this market affected by the tragedy? Yes of course it was, for nothing in New York has remained untouched from the attacks. However, this does not mean that every person, family and company will relocate to Long Island, or New Jersey.

Even the downtown area sustains a thriving neighborhood. Remaining residents are gradually trying to rebuild the community they once knew.

There is still South Street Seaport, Battery Park, City Hall Park, Bowling Green, and many businesses. Granted, many businesses were lost after the attack, but 7 World Trade Center is expected to reopen in 2004, offering 2 million square feet of retail space. Debates on what shall become of the twin tower site are ongoing; but there is no doubt that New York's financial district will be restored. It will be restored with the high skyscrapers that New York City is famous for. We have no choice; so much commercial space was lost, Manhattan is too small to build out wider, there is no more space, the only place to go is up.

"They are pumping billions of dollars into this area, whenever you invest that amount of time and money in a neighborhood it will thrive," said DeGratto. DeGratto, and other broker, have an optimistic view of the market and the rebuilding of the neighborhood. Come next year, it won't be the hot spot, and it will take many years for the scars to fade from this neighborhood and from this city. However, the reality is, people need a place to live, why not downtown?

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