Q1 2024 Economic Report
Employers
District Hospitality
*Source:
*Source: CoStar
The hospitality industry is booming in Flatiron and NoMad with six luxury hotels having opened in recent years. The Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) have consistently outpaced Manhattan-wide averages over the last year. In October 2023, area hotel ADR peaked $51.40 higher than other areas in Manhattan.
AVERAGE DAILY RATE (ADR)
Flatiron NoMad Manhattan
January 2023 $231 $212
February 2023 $241 $214
March 2023 $289 $264
April 2023 $352 $315
May 2023 $377 $344
June 2023 $354 $324
July 2023 $306 $279
August 2023 $305 $271
September 2023 $461 $419
October 2023 $435 $384
January 2023 $399 $358
December 2023 $458 $425
STRONG HOLIDAY SEASON FOR NEIGHBORHOOD HOSPITALITY
+66%
Flatiron & NoMad ADR since 2021
Flatiron and NoMad’s hospitality sector enjoyed a strong holiday season, with the average ADR topping $430 in Q4 2023. ADR and occupancy rates both climbed over the past three years indicating a robust post-pandemic recovery.
9/11
Hospitality continues to be an important component of Flatiron and NoMad’s economy and investment and growth in the sector is vital to the success of the district.
*CoStarpresentshospitalityinformationincludingADR,RevPAR,andOccupancyRatesbysubmarketstoprotecttheinformation ofindividual hotels. Flatiron&NoMadspantwoCoStarsubmarkets,ChelseaandGramercy,anddatashowninthisreportreflectsthesetwosubmarkets.
QCEW, CoStar$50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Jan-23 Dec-23
$-
Average ADR Occupancy Rate SUBMARKET PERFORMANCE 70% 79% 82% 62% 64% 66% 68% 70% 72% 74% 76% 78% 80% 82% 84% $$50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Q4 2021 Q4 2022 Q4 2023 $258.86 $385.66 $430.72
*Source: CoStar
Employers
82% occupancy
Q4 2023
6 hotels opened since 2021
5,000+ room keys
*Source: QCEW, CoStar 9/11 Flatiron & NoMad Hotels
Office Leasing
97 tenants signed leases in Flatiron and NoMad this quarter, totaling 500,951 SF. Availability rates for Class A office space reached a high in Q1 2024. The challenges of evolving work patterns and a recent increase in Class A supply in Flatiron and NoMad continues to impact direct and sublease availabilities across the district. Of the 97 total leases signed in Q1 2024, fourteen exceeded 10,000 SF. Some lessees include eBay, Rebecca and Aaron Schools, and DXL Big + Tall.
The number of Class A and B commercial leases (72) have rebounded since their lowest point in Q2 2020 when only 19 were signed. The number of Class A and Class B office leases signed in Q1 is on par with pre-2020 levels.
CLASS A AND B LEASES (2019 – 2024)
30.1%
*Source: CoStar
RENTAL RATES AT-A-GLANCE
Leased SF Q1 Leased SF # of Signed Leases10 20 30 40 50 60 70 80 90100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 9.4% 9.4% 13.2% 23.0% 24.9% 30.1% 8.4% 12.7% 22.0% 19.2% 22.3% 23.5% 0% 5% 10% 15% 20% 25% 30% 35% 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 Class A Class B CLASS A AND B AVAILABILITY (2019 – 2024) $82.79 Class A $48.54 Class B $55.94 All Classes 7.2 M SF Available Office Space
Q1 2024 Mobility
FOOT TRAFFIC CONTINUES UPWARD
*Source: Placer.ai & Springboard
Transit use and pedestrian counts indicate a bustling Flatiron and NoMad. Q1 2024 data reflects that the district continues to be popular and desirable for New Yorkers and tourists alike.
55K average weekday employees
5 M total pedestrian footfalls
+28% Thursday vs. Sunday foot traffic
58.6K average weekday visitors
+89% pedestrian recovery from Jan ’22
The average daily pedestrian counts on the Flatiron Public Plazas reached 67K in March, the highest recorded since the onset of the pandemic. As in previous quarters, peak volumes tend to be midweek. Case in point, total pedestrian counts on Q1 Thursdays totaled 836,116 compared to 652,478 on Sundays.
AVERAGE DAILY PEDESTRIAN COUNTS – FLATIRON PUBLIC PLAZAS (2022 – 2024)
10,000 20,000 30,000 40,000 50,000 60,000 70,000 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24
Employees
Q1 2024 Mobility
*Source: MTA
*Source: QCEW, NYCEDC, Exteros)
Flatiron and NoMad subway ridership continues to climb with an average of 160,000 daily users in Q1 2024. The nine subway stations serving the district has seen a 19% increase since Q2 2022. The district is also wellserved by MTA buses and PATH trains at 23rd and 33rd Streets.
AND NOMAD
RIDERSHIP
–
RIDERSHIP
FLATIRON
SUBWAY
(2022
2024) SUBWAY
33 rd St (6) 33 rd St (6) 5,442,127 1,414,691 33 St (6) 5,442,127 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 12,179,408 12,215,864 13,822,276 13,110,811 14,139,344 MTA Subway Station Q1 2024 Station Ridership 23rd St (1) 784,505 28th St (1) 732,594 23rd St (6) 1,400,522 28th St (6) 1,129,221 33rd St (6) 1,521,325 23rd St (F, M) 1,309,670 34th St-Herald Sq (B, D, F, M, N, Q, R, W) 5,772,524 28th St (R, W) 709,065 23rd St (R, W) 1,088,373 9 MTA stations 10 subway lines 13,497,943 14,802,108 14,447,799 14.4M Q1 2024 ridership
MSMX Plan
MIDTOWN SOUTH MIXED-USE PLAN DRAFT RECOMMENDATIONS
Source: Department of City Planning
+140K SF new retail space
DCP’s scoping meeting will provide an opportunity for public input and recommendations on which items should be included in agency analysis. This meeting will be held on Thursday, April 18 . Learn more about MSMX at
https://www.midtownsouthplan.nyc/
The Department of City Planning (DCP) released zoning recommendations for the Midtown South Mixed Use (MSMX) Plan, which seeks to foster vibrant neighborhoods across 42 blocks of Midtown South.
DCP proposes rezoning four areas, currently zoned for manufacturing, as mixed-use districts that allow for housing, commercial, manufacturing, and community facility uses. These changes could result in the development of 4,000 new housing units (including a requirement for income-restricted housing ranging from 790 – 1,140 units) with more housing possible with changes in State law.
There are nine proposed development sites in Flatiron and NoMad in DCP’s scoping materials. With the proposed changes, 1,443 additional dwelling units may be built in the district including up to 435 affordable units. These changes would also result in an additional 140K SF of retail space and a net loss of 18.5K SF of office space. Commercial-to -residential conversion, not explored in detail in the Scope, would provide even more housing units.
+1,443 new housing units
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City of Yes & M- CORE
CITY OF YES FOR ECONOMIC OPPORTUNITY APPROVED BY CITY PLANNING COMMISSION
On March 6, the City Planning Commission approved the text amendment for the City of Yes for Economic Opportunity. The City of Yes for Economic Opportunity has four central goals, shown below. The next step is for City Council to review the amendment and vote on whether to approve the City of Yes for Economic Opportunity as they did in 2023 for City of Yes for Carbon Neutrality.
CITY OF YES FOR ECONOMIC OPPORTUNITY GOALS
Make it easier for businesses to find space and grow by lifting barriers to ease access to customers.
Boost growing industries by reducing obstacles for new types of businesses.
Enable more business - friendly streetscapes by delivering active, safe, and walkable streets for businesses and residents.
Create new opportunities for businesses to open by establishing new zoning tools to boost job growth and business expansion.
SECOND ROUND OF M-CORE CLOSES APRIL 15TH
Manhattan Commercial Revitalization (MCORE) is a joint effort of New York City Economic Development Corporation (NYCEDC) and the New York City Industrial Development Agency (NYCIDA). M-CORE incentivizes owners of commercial buildings to pursue renovations and investments in their properties that will improve the quality of Manhattan’s office stock. The initial round of M-CORE resulted in two awardees: WSA Waterfront LLC at 175 Water Street and HPS Investment Realtors at 850 Third Avenue. Please see MCORE round two requirements at left.
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MANHATTAN south of 59 th street Built before 2000 75% OF AV minimum investment M-CORE ELIGIBILITY
REQUIREMENTS
FLATIRON NOMAD PARTNERSHIP 230 Fifth Avenue, Suite 1511 New York, New York 10001 P (212) 741-2323 FlatironNoMad.nyc Ali Begazo Director of Economic Development abegazo@flatironnomad.nyc P (212) 741-2323 x 105 FOLLOW US @FlatironNY X, Instagram, Facebook