Residents' opinions about Downtown unchanged. (Insiders Outlook).

In the summer of 2001, the residential community in Lower Manhattan was thriving. It was the fastest growing neighborhood in Manhattan, occupancy rates were approximately 95% and there were optimistic expectations for the future. Sept. 11, 2001 changed everything. Almost all of the residents Downtown were forced to leave their apartments for at least some period of time and some never returned.

Occupancy levels fell to under 70% and it was unclear when, how or, even if, the Downtown residential community would recover. Few predicted that by Sept. 11, 2002, the residential community in Lower Manhattan would be one of the biggest early success stories in the revitalization of Downtown.

Residential occupancy rates in Lower Manhattan are back up to the 95% pre-Sept. 11 level. What is most significant is the number of new residents that have already moved Downtown thanks to the intrinsic strengths of the Lower Manhattan market and to the residential incentives implemented by the Lower Manhattan Development Corporation (LMDC). To a significantly greater extent than the commercial and retail sector, the residential market has recovered from the devastation of Sept. 11 with residents expressing strong commitment to their community.

A survey conducted by the Downtown Alliance immediately prior to the one-year anniversary of the terrorist attacks revealed attitudes similar to those elicited in a survey conducted two years ago.

The 2002 survey, conducted during July and August, was mailed to approximately 3,500 apartments in buildings chosen to represent the different residential pockets in Lower Manhattan and to ensure a mix of owners and renters. The Downtown Alliance received 1,030 completed surveys for a response rate of approximately 30%.

According to the survey, a typical Lower Manhattan resident is under 45 years old, living with at least one other person, often described as part of a couple or family, and living with no children. They earn an average yearly income over $90,000. Residents that moved to the area after Sept. 11 were a little younger and a little less affluent then those residents already living in Lower Manhattan.

Lower Manhattan residents work in a diverse array of industries though they are very strongly connected to the Lower Manhattan commercial office market. Forty percent work in Lower Manhattan buildings or at home. Ninety percent work in Manhattan.

While financial and business services continue to be most important, residents are also employed in several other industries including media, high-tech and healthcare.

Residents are more optimistic than ever about the future of their neighborhood and are more likely to remain in Lower Manhattan. Of the residents surveyed in 2002, 62% indicated that Lower Manhattan was their first choice when they began searching for an apartment. About 80% planned to stay put for at least three years, and 66% indicated they would remain for at least five years.

Residents live in Lower Manhattan for the Quality of Life. Eighty percent of residents reported that the Overall Quality of Life Downtown is a "Very Important" reason to live in Lower Manhattan. Other "Very Important" reasons as rated by respondents include Quality of Apartment, Safety/Security (72%), Neighborhood "feel" (64%, Affordability (60%), and Waterfront (60%).

While residents are committed to their neighborhood, 60% of residents report that Downtown shopping does not meet their expectations and the same percentage are either "Very" or "Somewhat Dissatisfied" with the selection and quality of shops. Residents are almost evenly satisfied and dissatisfied with Lower Manhattan restaurants.

However, despite almost half of all residents reporting dissatisfaction with restaurants Downtown, 80% eat out or take out at least once per week and 46% eat out or take out three or more times per week.