These Days, Tenants Housed in Insurance Submarket Anything But
By Jotham Sederstrom October 23, 2012 7:45 am
reprintsSince emerging in the early 20th century, the Insurance District has taken over the northern streets of the Financial District. The district spans from Broadway to William Street and from Pine Street to Park Row, with John and Fulton streets forming the heart of the district.
The New York Life Insurance Company, among the largest insurance companies today, was founded in 1845 and opened its first headquarters at 112-114 Broadway, becoming one of the first insurance companies in the area. Hundreds of firms moved to the area and took spaces in historic buildings like the Home Royal Insurance Building, 110 Fulton Street, Home Insurance Plaza and the National Board of Fire Underwriters Building.
The Insurance District, of course, has changed over time, and the New York Life Insurance Company relocated to a building on Madison Avenue. AIG’s recent financial collapse forced it to sell its building in 2009 and lose its foothold in the neighborhood.
“The Insurance District really is no longer its own and distinct submarket, but has truly been absorbed within the FiDi market,” said Kent Swig, president of Swig Equities. “This market has remained strong and stable and continues to show low vacancy rates. With exception of AIG and a few other relocations and downsizing, the market has had a steady stream of new tenants.”
The vacancy rate has decreased to 6.8 percent from 7.1 percent this year, according to Cushman & Wakefield (CWK). The average vacancy rate in the city as a whole has been around 9 percent.
Insurance companies are still drawn to the area—especially seen in 100 William Street’s recent lease activity with Tower Insurance, New York Property Insurance Underwriting Association and OdysseyRe—but the area has attracted other businesses as well. In addition to the insurance agencies, 100 William Street signed with Priceline.com and a financial firm, Interactive Data Corporation.
