Rents throughout the city soared in the second quarter, yet Lower Manhattan continues to be much more cost effective than other parts of the city. Midtown South rents spiked by 14% to an overall asking rent of $59.46, a 10-year high. That jump has given a boost to Lower Manhattan, where average asking rents come in at $22-per-square-foot less than Midtown and $14-per-square-foot less than Midotwn South.

Taking rents held firm at a healthy 90% of asking rents, showing that landlords didn't need to add concessions to close deals, the report states. Prices show no sign of escalating above rental rates in the other two submarkets, says Jennings. “We're still at a discount over Midtown and now Midtown South as well, which gives us an advantage.”

In particular, the technology, advertising, media and information sector was drawn into the area. The WeissComm Group, a public relations firm, is moving to 199 Water St. from Midtown South while two technology firms also are heading down to the bottom of Manhattan. Another media tenant, Group M, completed a term sheet for 500,000 square feet at 3 World Trade Center. If that relocation from three Midtown locations goes forward as expected, it will give Silverstein Properties what it needs to plow ahead with a linchpin of its development, Jennings notes.

The good news, and planned development, likely will allow Lower Manhattan to keep hitting a high note for some time. “Between now and 2015, the rest of the World Trade Center, the development of the East River waterfront, the transportation hubs, the revitalized Pier 17 at South Street Seaport and more are expected to be unveiled,” Jennings asserts. “We're headed for an exciting two years in Lower Manhattan, so for tnenats looking to take advantage of Downtown's assets, now's the time.”