Attractions like the Statue of Liberty and the WTC Memorial draw tourists, and hotels have followed, Ms. LaRusso said. The number of hotels in the area now stands at 18—up from six in late 2001—with five more under construction. The development of the Financial District as a place to stay, not just a place to visit, could increase the foot traffic and exposure that shops crave. “It has a huge impact on retail,” said Ms. LaRusso. Already operating in the area are Canali, Hermès, Sarar, Morton’s and three new Danny Meyers restaurants, among others.
“The fundamentals of Downtown are extremely compelling,” said Ed Hogan, national director of leasing at Brookfield (BN) Properties. In the relatively small space between Broadway and West Street, about $20 billion of construction is underway, he explained. This includes the W Hotel, The Conrad Hotel, the new Fulton-Broadway subway station and others.
Mr. Hogan feels luxury will find a home in lower Manhattan. The World Financial Center—now called Brookfield Place—will feature developments specifically with retail in mind. Brookfield’s plans include a 25,000-square-foot marketplace, five restaurants, a 35,000-square-foot dining terrace with harbor views, a 30,000-square-foot health club and a 200,000-square-foot mall. There will be over 40 spaces for fashion retailers. And it will not only be a destination for shoppers from other neighborhoods: the nearby Battery Park City houses some 20,000 residents with average incomes of over $140,000 per year.
There are luxury boutiques on Wall Street that are doing well, Mr. Hogan said, but with its dense security and canyon-like atmosphere, it may not be an enjoyable shopping experience.
On top of Brookfield’s play, Westfield’s $612.5 million stake in developing retail around the WTC area is working to attract retailers now.
