Jones Lang LaSalle


Going downtown? Add up the savings

As part of the effort to lure commercial tenants to lower Manhattan, the Alliance for Downtown New York has unveiled a Web-based calculator to help companies determine the value of downtown tax incentives.

In September, Gov. George Pataki enacted a program of incentives for firms that renew a lease, expand or relocate south of Canal Street.

The inducements have further lowered downtown rents, which on average are 46% cheaper than those in midtown, according to data from CB Richard Ellis. Nearly 8,000 businesses relocated downtown in 2005, and the vacancy rate dipped to 10.6% in the fourth quarter, compared with 13.7% in the year-earlier period.

Several new downtown tenants, including TitleVest Agency, moved from midtown.

"The advantages to moving were compelling," says Bill Baron, the president of the title insurance firm. TitleVest has leased 16,000 square feet at 44 Wall St., at the corner of William Street. Its incentives have translated into savings that include more than $17,500 a year in tax abatements, at least $100,000 in tax deductions and a 45% reduction in electrical costs.

The incentives calculator can be found at www.downtownny .com/calculator.
--Julie Satow