In the mid-2000s, one-by-one, media firms seeking new space moved into the lower reaches of Manhattan. Brokers and developers really started to take notice back in 2010, when the New York Daily News announced plans to leave its Midtown headquarters for offices Downtown, at 4 New York Plaza. Adding significance to the move was the announcement that the paper's sister company—US News & World Report Media Group—would join in on the lease, which combined was for 100,000 square feet.

And then a deal so big and significant happened, it cemented in people's minds the idea that Downtown was a viable district for media firms. That was the decision in 2011 by Conde Nast to move to One World Trade Center from its current location, 4 Times Square. It will move later this year, even though its Midtown lease doesn't expire until 2019. Upon the announcement of the relocation, rumors swirled that the motive for the move was significant savings on rent, though that wasn't confirmed. But no matter the reason, the relocation sent shockwaves through the city. For a large and respected media company to pull out of its Midtown digs for a Downtown location—when that location was not yet even built—was a big endorsement for lower Manhattan.

Nielsen followed suit last year when it relocated from its Midtown South headquarters, at 770 Broadway, to 85 Broad St. And there's a factor about that move which is telling: the ratings company took the former headquarters of Goldman Sachs. Already in the first quarter of 2013, book publisher Harper Collins, a household name, relocated from the traditional publishing hub of Midtown South to Downtown's 195 Broadway with a 15-year lease for over 180,000 square feet of space.

Other young and less conventional industries are circling the Downtown area, too. Regus, the office space provider, purchased an entire floor—spanning 54,991 square feet—at Brookfield Place in February. Law firms are heading south as well. Broad Street Development, which owns 55 Broadway and 61 Broadway, had a record January for its Downtown properties, inking leases for close to 54,000 square feet of space. Among the new tenants it secured were four law firms, which together signed agreements for more than 19,000 square feet.

And in early March, market research firm GfK signed a 16-year lease for 75,020 square feet at 200 Liberty St., or the former World Financial Center. “Everyone is evaluating Downtown, in all sectors,” says Greg Taubin, executive managing director of Studley.

Simultaneously, the financial sector is struggling. Its firms are continuing to reduce headcount and report declining profits in the wake of the recession, which, after all, was instigated by faulty mortgages and fraudulent financial instruments. In fact, according to Crain's New York Business, the city's Independent Budget Office expects the ranks of finance folks to decline yet again this year, by about 4,000 people, to 167,000. Before the crash, reportedly 190,000 New Yorkers worked in the securities industry.

“The financial services sector has not yet fully bounced back,” notes Ken McCarthy, chief economist at Cushman & Wakefield. “It lost over 40,000 jobs in the recession and has only recovered about 13,000.” Or, measured another way, he says, “In 2012, employment in the sector was up 3,000 from a year before, but the city added 75,000 jobs for the year, so it's not a big piece. Hiring has been declining for years and now it's flat, so some larger firms are downsizing.”

Published reports in January and February revealing planned layoffs read like a laundry list of the top financial firms, including Barclays, J.P. Morgan and Morgan Stanley. Those came in the wake of another such announcement in December, when Citigroup also revealed plans to slash its headcount.

But much to the delight of Downtown landlords, there's no shortage of interest from tech and media firms in filling that vacant space. And there are multiple enticements for tenants who have not traditionally been headquartered Downtown to move below 14th Street.

For starters, there's the matter of pricing. “Certain new media and technology tenants are cost conscious and, for them, Downtown is the best bet and will remain so,” says Taubin. In fact, it can be as much as a $25-per-square-foot difference from Midtown to Downtown, says Van Aken. “As of the fourth quarter, we were seeing prices of $64.77 per square foot in Midtown, compared to $40.08 per square foot Downtown.”

Inventory Downtown also offers all the bells and whistles that come with new or spruced-up structures, allowing companies to take a reduced footprint, another source of savings. “The efficiencies of new construction allow a company to lease anywhere between 10 to 15% less space,” says Brad Gerla, executive VP at CBRE. “In the newer buildings Downtown, all the mechanicals are in the core of the space, not the outer corridors, so a developer doesn't have to build common corridors, there are no columns and you can build up to the window line because there are no radiators. If you're a 200,000-square-foot tenant and you're now taking up 170,000 square feet, that creates a significant savings on cost.”

Dramatic changes to amenities Downtown also have boosted the area's appeal, Gerla says. “Media companies and book publishers want to take clients out to entertain, and that was the rub to Downtown—there was nothing there,” he asserts. “But now, there are restaurants and excitement in the area.”

The general trend toward using space more efficiently is also bringing firms to Manhattan's lower reaches, notes McCarthy. “Any firm in lease negotiation today is seeking to take advantage of new trends in efficiency and reduce its footprint,” he says. “That extends not just to financial services but also to the communications and legal sectors, among others. The recession has brought this to the forefront.”

Even the location of Downtown itself has gained appeal as areas surrounding it have become more popular residential centers, notes Lisa Kiell, managing director of Jones Lang LaSalle. “Downtown, with its public transportation, can accommodate employees who might live in Williamsburg, Park Slope and Hoboken.” Creative class companies, such as media firms, also are more likely to attract workers who live in these trendy areas.

The entrance into the workforce of the Millennial generation, and their trend toward working collaboratively, also has boosted the number of firms looking for space with an open floor plan, something that's easier to find Downtown, according to industry watchers.

That was certainly the case for GfK, as was noted in the announcement of its lease. “GfK carefully considered all options, including those in Midtown and Midtown South, before deciding on the new space,” says John Wheeler, managing director and head of JLL's Downtown office. “The fourth floor allowed for a highly efficient occupancy, giving the global research firm the ability to house its operations on a single floor. The fourth floor space features above-standard ceiling heights, bright exposures and attractive views.”

Market watchers will likely continue to see such rationale behind a growing number of deals Downtown, Kiell forecasts. “The availability Downtown, plus the type of space available, with new infrastructure and bigger floor plates, will continue to sell Downtown,” says Kiell. Midtown South, which has typically hosted media and information businesses, in contrast, has a very low availability rate. It was just 7.9% in the fourth quarter, states Van Aken. By contrast, the rate Downtown is 10%, he says.

Beyond all these selling points, Downtown is gaining traction because of what one might call soft upgrades being made by landlords to entice new types of firms. Brookfield changed the name of the World Financial Center to Brookfield Place, not only to promote its firm but to make non-finance companies feel comfortable, said Mitchell Rudin, president of US commercial operations, in a recent interview with BloombergBusinessweek. “We've seen many tenants in media, entertainment, law and consumer products, in addition to seeing tenants in the financial sector,” Rudin says. “The non-financial tenants have indicated to varying degrees that it was not appealing to be in a complex that was denominated financial. So we decided to accommodate that.”

Other changes have run the gamut of the human imagination, including lactation rooms, says Taubin. “I've seen this twice recently,” he asserts, as well as “showers and play areas. When space is being built out for companies, they can cater to those firms' needs. Many in the creative class have young workers and the employers want them to enjoy the space so they'll be active and happy there. So some of the companies have large and multiple pantries, lounges and/or breakout areas. You also see a lot of audiovisual equipment at these firms; connectivity is important.”

At the end of the day, Downtown is offering media and tech firms major bang for the buck, says Van Aken. “Even with a 10% vacancy rate, you have a lot of buildings with vacant space, as well as new inventory coming on line,” such as 1 World Trade Center and the refurbished Brookfield Place, “and rents will stay extremely affordable for the foreseeable future,” he forecasts.

“It will continue to be a value play through at least the end of the year,” Van Aken suggests. “I think Downtown, even looking out two years, will be significantly less expensive than the alternative.”