MISSION:
BUILD A PLATFORM
TO MAKE FIDI
A MODEL DISTRICT
FOR THE FUTURE
CHALLENGES:
Three forces are creating the next urban market. will change how cities plan, operate, automate, and serve people; will force resilience, adaptation, and decarbonization; and will reshape housing, mobility, healthcare, energy, safety, and services. Invent City turns pressure into demand.
OBJECTIVES:
- Accelerate deployment of critical urban solutions.
- Create jobs, economic activity, and tax revenue for NYC.
GENERAL APPROACH:
Invent City builds an urban solutions innovation district in FiDi. A Trade Mart anchors the district. Immersive showrooms, events, media, data, digital platforms, and AI keep the market active year-round.
MODELED RESULTS FOR NYC:
- $4B in annual economic activity.
- 15,000 jobs.
- $380M in annual tax revenue.
STRATEGY:
LEAD WITH ECONOMICS,
USE WHAT WORKS,
ACTIVATE FIDI,
SCALE WITH AI
Invent City leads with economics because economics moves decisions. Cities face rising costs from climate risk, aging infrastructure, congestion, housing pressure, labor shortages, and service demand. Invent City turns those pressures into a market: lower the cost of inaction, raise the return on solutions, and make urban innovation easier to buy, finance, and deploy.
For investors and companies, cities are a massive . More than 4 billion people live in urban areas today. Roughly 6 billion could by 2100. Older cities must modernize. Fast-growing cities must build. Both need better systems for energy, water, mobility, buildings, waste, safety, food, health, and services.
Deployment depends on who control budgets, approvals, risk, and adoption. Invent City focuses on for each of them: jobs for NYC, sales for companies, revenue for government, returns for investors, better tools for operators, and faster deployment for cities.
Climate damages could reach $38T a year by 2050. Target urban-solution markets could top $43T annually by mid-century.
Demographics
Urban growth is expanding demand for housing, mobility, services, and infrastructure.
Rising Urban Populations
Growth in Developing Cities
AI impact
AI is reshaping city systems, improving performance while raising new risks and governance questions.
AI Spendingby Area
Immediate potential of AI in NYC
Environmentals
Heat, flooding, and climate stress are driving demand for more resilient urban systems.
Sea Level Rise
Rising Temperatures
An puts companies, buyers, talent, capital, suppliers, and civic partners in one market. Models like Kendall Square and 22@Barcelona show how proximity speeds discovery, trust, investment, and growth.
Invent City targets and urban needs. Water, flooding, sea-level rise, heat, mobility, housing, energy, waste, safety, and public services are not optional markets. Cities must solve them, fund them, and deploy better systems.
A Trade Mart anchors the industrial district and serves as its economic core. It brings buyers and sellers together in one permanent marketplace. Urban-solution companies can demo products, meet customers, launch pilots, secure financing, build partnerships, and move deals toward deployment.
The Trade Mart model is a for concentrating demand. it brings customers, partners, investors, agencies, and project teams together. it makes solutions easier to find, compare, test, finance, and deploy.
Invent City adds the FiDi advantage: a real urban test bed. Buildings, streets, rooftops, micro-transit, energy systems, urban agriculture, water, waste, and public-space solutions can be demonstrated in context — not just inside a showroom.
populate the Trade Mart and make urban solutions easier to buy. Corporations, start-ups, and incubators can show complex products in spaces where buyers can see, compare, and test them. Events bring the market to FiDi. Digital platforms keep it active everywhere.
turn sales pitches into proof. In a real urban district, buyers can experience future streets, buildings, parks, rooftops, waterfronts, and city systems before they invest. That makes decisions faster, smarter, and easier to defend.
Buildings
Urban Agriculture
Consumer Products
Energy & Power
Urban Robotics
Urban AI
Wastewater
Water Systems
Transportation
gives Invent City instant credibility. It concentrates capital, media, talent, tourism, culture, real estate, agencies, universities, employers, and decision-makers. NYC makes the platform visible.
Within NYC, gives Invent City leverage. It has transit, Wall Street capital, global visibility, historic identity, waterfront risk, vacant space, and direct access to buyers, investors, agencies, founders, media, and civic leaders.
John Street
Nassau Street
S William and Beaver
Under the FDR
Broad Street @ NYSE
William Street @ Fosun Plaza
Wall Street
Gotham Park
The venue strategy turns vacancy into leverage. FiDi’s empty offices, retail spaces, POPS, streets, parks, and public-realm assets give Invent City a faster, lower-cost launch path than new construction. becomes productive space when showrooms, events, services, companies, and street life fill it. Invent City addresses vacancy directly by activating underused space, and indirectly by attracting firms, buyers, investors, delegations, media, workers, and visitors back to FiDi.
Office vacancy
Vacant FiDi office space can become productive economic infrastructure faster than major redevelopment.
Retail vacancy
Vacant storefronts can become street-level showrooms, pop-ins, pilots, and visitor-facing demonstrations.
Lower cost
Existing FiDi space can be activated faster and at far lower cost than conversion or ground-up development.
RedevelopmentCosts
Faster revenue
A Trade Mart can move from vacant space to market activity much faster than major redevelopment.
Time toRevenue
Flexible rollout
The platform can start small, prove demand, and expand as companies, buyers, and capital follow.
FlexibleRollout
can package essential street services in one place. They can combine last-mile logistics, Blue Highway freight transfer, charging, battery exchange, micromobility, waste, storage, public bathrooms, worker support, shade, water, information, and emergency response.
can add major public-realm upside, including Gotham Park. Invent City does not depend on it, but Gotham Park could showcase water, mobility, vegetation, lighting, and public-space technology.
can become a major productivity layer for NYC. It can improve finance, real estate, healthcare, media, government, logistics, mobility, energy, and public services.
makes FiDi a real-world place to test urban AI. Companies can prove what works, what saves money, what reduces risk, and what needs stronger oversight before cities scale it.
make the market easier to understand. Buyers, investors, agencies, operators, and delegations can compare tools, run simulations, review data, test ROI, and move faster.
Invent City extends beyond FiDi to make the market global and always active. Events, media, data, digital platforms, and AI create for founders, buyers, investors, policymakers, operators, delegations, and press. lets audiences explore, compare, share, and engage across time zones. turns interest before and after a FiDi visit into trust, leads, pilots, investment, and deployment.
Events
Live programming turns attention into meetings, pilots, partnerships, and deal flow.
Events
Media
Content expands the Trade Mart beyond FiDi and keeps buyers engaged between visits.
Media
Digital reach
Digital and AI channels keep discovery, comparison, and follow-up active 24/7.
DigitalReach
FOR NYC:
$4B IN ECONOMIC ACTIVITY,
15,000 JOBS,
$380M TAX REVENUES
Tourism brings outside dollars into New York. Invent City adds high-value business and innovation visitors who support FiDi hotels, restaurants, retail, culture, transit, events, and services.
| Tourism summary | Mid |
|---|---|
| Annual visitors | 1,000,000 |
| Traveler spending ($/yr) | $1,348,750,000 |
| Total economic impact ($/yr) | $2,090,562,500 |
| Tourism-supported jobs | 6,034 |
| Modeled taxes and fees ($/yr, no PIT) | $159,240,625 |
| Rounded taxes and fees ($/yr, no PIT) | $159,200,000 |
| Note: PIT excluded to avoid double counting with Trade Mart payroll impacts. | |
| Tourism summary | Low | Mid | High |
|---|---|---|---|
| Annual visitors | 1,000,000 | 1,000,000 | 1,000,000 |
| Traveler spending ($/yr) | $1,035,000,000 | $1,348,750,000 | $1,768,750,000 |
| Total economic impact ($/yr) | $1,604,250,000 | $2,090,562,500 | $2,741,562,500 |
| Tourism-supported jobs | 6,034 | 6,034 | 6,034 |
| Modeled taxes and fees ($/yr, no PIT) | $123,684,375 | $159,240,625 | $206,796,875 |
| Rounded taxes and fees ($/yr, no PIT) | $123,700,000 | $159,200,000 | $206,800,000 |
| Note: PIT excluded to avoid double counting with Trade Mart payroll impacts. | |||
| 1. Base assumptions: 1.0M visitors/yr | Visitors/year | Avg nights | Hotel room-nights | Visitor-days |
|---|---|---|---|---|
| International overnight | 250,000 | 5 | 1,250,000 | 1,250,000 |
| Domestic overnight | 250,000 | 2 | 500,000 | 500,000 |
| Domestic day | 500,000 | 0 | 0 | 500,000 |
| Total | 1,000,000 | — | 1,750,000 | 2,250,000 |
| 2. Spending inputs | Low | Mid | High |
|---|---|---|---|
| Hotel room-nights | 1,750,000 | 1,750,000 | 1,750,000 |
| ADR ($/room-night) | $250 | $325 | $425 |
| International other spend ($/day) | $350 | $450 | $600 |
| Domestic overnight other spend ($/day) | $200 | $275 | $350 |
| Domestic day other spend ($/day) | $120 | $160 | $200 |
| Note: ADR = average daily hotel room rate. “Other spend” = non-hotel visitor spending. | |||
| 2A. Hotel and other traveler spending | Low ($/yr) | Mid ($/yr) | High ($/yr) |
|---|---|---|---|
| Hotel revenue | $437,500,000 | $568,750,000 | $743,750,000 |
| Other spending (non-hotel) | $597,500,000 | $780,000,000 | $1,025,000,000 |
| Total traveler spending | $1,035,000,000 | $1,348,750,000 | $1,768,750,000 |
| Formula: Other spend = sum of (visitor-days by segment × spend/day by segment). | |||
| 2B. Total economic impact | Low | Mid | High |
|---|---|---|---|
| Traveler spending ($/yr) | $1,035,000,000 | $1,348,750,000 | $1,768,750,000 |
| Impact ratio | 1.55x | 1.55x | 1.55x |
| Total economic impact ($/yr) | $1,604,250,000 | $2,090,562,500 | $2,741,562,500 |
| Rounded total economic impact ($/yr) | $1,604,000,000 | $2,091,000,000 | $2,742,000,000 |
| Formula: Total economic impact = traveler spending × 1.55. | |||
| 3. Tourism-supported jobs | Input / Output | Value |
|---|---|---|
| NYC visitors (2024) | 64.3M visitors | |
| NYC tourism-supported jobs (2024) | 388,000+ jobs | |
| Jobs per 1M visitors | 6,034+ jobs | |
| IC annual visitors (assumption) | 1.0M visitors | |
| IC tourism-supported jobs (modeled) | 6,034+ jobs | |
| Formula: Jobs per 1M visitors = 388,000 / 64.3. | ||
| 4A. Hotel room taxes and fees | Low | Mid | High |
|---|---|---|---|
| NYS sales tax on hotel rooms (4.0%) | $17,500,000 | $22,750,000 | $29,750,000 |
| NYC sales tax on hotel rooms (4.5%) | $19,687,500 | $25,593,750 | $33,468,750 |
| MCTD sales tax on hotel rooms (0.375%) | $1,640,625 | $2,132,813 | $2,789,063 |
| NYC hotel occupancy tax (5.875%) | $25,703,125 | $33,414,063 | $43,695,313 |
| NYC per-room hotel tax ($2.00 × room-nights) | $3,500,000 | $3,500,000 | $3,500,000 |
| NYS hotel unit fee ($1.50 × room-nights) | $2,625,000 | $2,625,000 | $2,625,000 |
| 4B. Sales tax on other spending | Low | Mid | High |
|---|---|---|---|
| NYS sales tax (4.0%) | $23,900,000 | $31,200,000 | $41,000,000 |
| NYC sales tax (4.5%) | $26,887,500 | $35,100,000 | $46,125,000 |
| MCTD sales tax (0.375%) | $2,240,625 | $2,925,000 | $3,843,750 |
| Total sales tax on other spending | $53,028,125 | $69,225,000 | $90,968,750 |
| 4C. Tax totals roll-up (no PIT) | Low | Mid | High |
|---|---|---|---|
| NYS total (hotel + other) | $44,025,000 | $56,575,000 | $73,375,000 |
| NYC total (hotel + other) | $75,778,125 | $97,607,813 | $126,789,063 |
| MCTD total (hotel + other) | $3,881,250 | $5,057,813 | $6,632,813 |
| Grand total (no PIT) | $123,684,375 | $159,240,625 | $206,796,875 |
| Rounded grand total (no PIT) | $123,700,000 | $159,200,000 | $206,800,000 |
| 4D. Tax formulas and notes | Low | Mid | High |
|---|---|---|---|
| Hotel revenue formula | room-nights × ADR | room-nights × ADR | room-nights × ADR |
| NYS hotel-room sales tax | Hotel revenue × 4.0% | Hotel revenue × 4.0% | Hotel revenue × 4.0% |
| NYC hotel-room sales tax | Hotel revenue × 4.5% | Hotel revenue × 4.5% | Hotel revenue × 4.5% |
| MCTD hotel-room sales tax | Hotel revenue × 0.375% | Hotel revenue × 0.375% | Hotel revenue × 0.375% |
| NYC hotel occupancy tax | Hotel revenue × 5.875% | Hotel revenue × 5.875% | Hotel revenue × 5.875% |
| NYC per-room hotel tax | $2.00 × room-nights | $2.00 × room-nights | $2.00 × room-nights |
| NYS hotel unit fee | $1.50 × room-nights | $1.50 × room-nights | $1.50 × room-nights |
| NYS sales tax on other spending | Other spending × 4.0% | Other spending × 4.0% | Other spending × 4.0% |
| NYC sales tax on other spending | Other spending × 4.5% | Other spending × 4.5% | Other spending × 4.5% |
| MCTD sales tax on other spending | Other spending × 0.375% | Other spending × 0.375% | Other spending × 0.375% |
| Scope note: PIT excluded to avoid double counting with Trade Mart payroll impacts. | |||
The Trade Mart turns urban innovation into recurring commercial activity. Jobs, payroll, procurement, buyer traffic, events, travel, and tax revenue all flow from the same engine.
The Trade Mart supports on-site teams, events, services, operations, hospitality, and spillover activity.
Buyers, sellers, delegations, events, and project teams keep FiDi active year-round.
Payroll, rent, property values, taxes, permits, and business activity create public and private upside.
| Trade Mart summary | Mid |
|---|---|
| Direct on-site jobs | 8,500 |
| Direct payroll ($/yr) | $1,427,500,000 |
| Local procurement ($/yr) | $428,250,000 |
| Total direct activity ($/yr) | $1,855,750,000 |
| Note: Direct activity shown here is kept separate from tourism and real-estate modules to reduce double counting. | |
| Trade Mart summary | Low | Mid | High |
|---|---|---|---|
| Direct on-site jobs | 8,500 | 8,500 | 8,500 |
| Direct payroll ($/yr) | $1,140,000,000 | $1,427,500,000 | $1,790,000,000 |
| Total jobs incl. indirect + induced | 12,750 | 15,300 | 17,850 |
| Knock-on jobs | 4,250 | 6,800 | 9,350 |
| Note: Only direct jobs should be treated as additive across modules to avoid double counting. | |||
| 1. Jobs based on area | Area | Density | Direct jobs |
|---|---|---|---|
| Showrooms | 1,000,000 sf | 1,000 sf/job | 1,000 |
| Support offices | 1,500,000 sf | 200 sf/job | 7,500 |
| Trade Mart total | 2,500,000 sf | — | 8,500 |
| Formula: Jobs = Area / Density. Example: 1,500,000 sf / 200 sf per job = 7,500 jobs. | |||
| 2A. Low-case payroll detail | Jobs | Low wage ($/yr) | Payroll ($/yr) |
|---|---|---|---|
| Showrooms | 1,000 | $90,000 | $90,000,000 |
| Support offices | 7,500 | $140,000 | $1,050,000,000 |
| Total for direct | 8,500 | $1,140,000,000 |
| 2B. Mid-case payroll detail | Jobs | Mid wage ($/yr) | Payroll ($/yr) |
|---|---|---|---|
| Showrooms | 1,000 | $115,000 | $115,000,000 |
| Support offices | 7,500 | $175,000 | $1,312,500,000 |
| Total for direct | 8,500 | — | $1,427,500,000 |
| 2C. High-case payroll detail | Jobs | High wage ($/yr) | Payroll ($/yr) |
|---|---|---|---|
| Showrooms | 1,000 | $140,000 | $140,000,000 |
| Support offices | 7,500 | $220,000 | $1,650,000,000 |
| Total for direct | 8,500 | — | $1,790,000,000 |
| 2D. Direct jobs | Jobs | Low wage | Mid wage | High wage |
|---|---|---|---|---|
| Showrooms | 1,000 | $90,000/yr | $115,000/yr | $140,000/yr |
| Support offices | 7,500 | $140,000/yr | $175,000/yr | $220,000/yr |
| Total direct jobs | 8,500 | — | — | — |
| Total payroll ($/yr) | 8,500 | $1,140,000,000/yr | $1,427,500,000/yr | $1,790,000,000/yr |
| 3. Local procurement | Low | Mid | High |
|---|---|---|---|
| Procurement assumption (% of payroll) | 20% | 30% | 40% |
| Local procurement ($/yr) | $228,000,000 | $428,250,000 | $716,000,000 |
| Formula: Local procurement = Payroll × Procurement share. | |||
| What it reflects: Tenant and campus operating spend—security, cleaning, repairs, IT/AV, catering, event staffing, printing/signage, and local logistics; excludes landlord building OpEx. | |||
| 4. Direct campus activity (Economic expansion) | Low | Mid | High |
|---|---|---|---|
| Payroll ($/yr) | $1,515,000,000 | $1,902,500,000 | $2,390,000,000 |
| Local procurement ($/yr) | $303,000,000 | $570,750,000 | $956,000,000 |
| Total direct activity ($/yr) | $1,818,000,000 | $2,473,250,000 | $3,346,000,000 |
| Formula: Total direct activity = Payroll + Local procurement. | |||
| 5. Indirect and induced jobs | Low | Mid | High |
|---|---|---|---|
| Direct jobs | 8,500 | 8,500 | 8,500 |
| Total jobs incl. indirect + induced | 12,750 | 15,300 | 17,850 |
| Knock-on jobs | 4,250 | 6,800 | 9,350 |
| Implied total multiplier | 1.50x | 1.80x | 2.10x |
| What this shows: Additional off-site jobs supported through suppliers, vendors, and household spending. | |||
| Definitions: Direct = on-site Trade Mart jobs. Indirect = supplier and vendor jobs supported by Trade Mart spending. Induced = jobs supported by household spending from wages. Knock-on = indirect + induced combined. | |||
| 6. Modeled tax revenues | Low | Mid | High |
|---|---|---|---|
| NYS PIT | $62,700,000 | $85,650,000 | $116,350,000 |
| NYC resident PIT | $34,200,000 | $45,680,000 | $60,860,000 |
| MCTMT | $10,203,000 | $12,774,125 | $16,020,500 |
| Sales tax on employee spending | $17,688,469 | $22,150,602 | $27,779,445 |
| Sales tax on local procurement | $10,117,500 | $18,998,344 | $31,772,500 |
| Total modeled taxes ($/yr) | $134,908,969 | $185,253,070 | $252,782,445 |
| Rounded total modeled taxes ($/yr) | $134,900,000 | $185,300,000 | $252,800,000 |
| NYS stands for New York State, NYC for New York City, PIT for personal income tax, and MCTMT stands for the Metropolitan Commuter Transportation Mobility Tax. | |||
| 6A. Tax assumptions and formulas | Low | Mid | High |
|---|---|---|---|
| NYS PIT effective rate | 5.5% | 6.0% | 6.5% |
| NYC resident PIT rate | 3.0% | 3.2% | 3.4% |
| MCTMT rate | 0.895% | 0.895% | 0.895% |
| Employee spending sales tax assumption | Payroll × 35% local spend × 50% taxable × 8.875% | ||
| Procurement sales tax assumption | Local procurement × 50% taxable × 8.875% | ||
| Procurement assumption | Payroll × 20% | Payroll × 30% | Payroll × 40% |
| NYS PIT formula | NYS PIT = Payroll × NYS PIT rate | ||
| NYC resident PIT formula | NYC PIT = Payroll × NYC resident PIT rate | ||
| MCTMT formula | MCTMT = Payroll × 0.895% | ||
| Employee spending sales tax formula | Payroll × 35% × 50% × 8.875% | ||
| Procurement sales tax formula | Local procurement × 50% × 8.875% | ||
| 6B. Scope note and caveat | Value |
|---|---|
| Scope note | NYC resident PIT assumes employees are NYC residents. If some workers commute from outside NYC, this line should be reduced accordingly. NYS PIT would still apply. |
| Additivity note | To avoid double counting across modules, only direct jobs should be treated as additive; indirect and induced jobs should not be added again in Tourism or other spillover modules. |
Invent City can make underused FiDi space productive again. Filling 3.0M sf can support NOI, values, refinancing, reinvestment, street life, and public revenue.
Filling 3.0M sf can strengthen income, values, and long-term public revenue.
Absorbing vacant office and retail space improves NOI, supports valuations, and rebuilds confidence in FiDi.
Existing space launches faster and costs less than ground-up development.
The Trade Mart attracts companies. A year-round FiDi marketplace puts firms near buyers, investors, agencies, partners, media, talent, and customers.
| Real estate summary | Low | Mid | High |
|---|---|---|---|
| Stabilized leased area (sf) | 3,000,000 | 3,000,000 | 3,000,000 |
| Annual rent ($/yr) | $165,000,000 | $165,000,000 | $165,000,000 |
| NOI ($/yr) | $111,750,000 | $106,860,000 | $102,000,000 |
| Illustrative implied value at 6.0% cap ($) | $1,862,500,000 | $1,781,000,000 | $1,700,000,000 |
| Modeled recurring NYC revenue capacity ($/yr) | $69,704,500 | $70,675,890 | $71,313,250 |
| Rounded recurring NYC revenue capacity ($/yr) | $69,700,000 | $70,700,000 | $71,300,000 |
| Note: This module is kept separate to avoid double counting with jobs, tourism, and construction modules. | |||
| 1. Leasing assumptions | Area | Asking rent | Annual rent |
|---|---|---|---|
| Trade Mart - Showrooms | 1,000,000 sf | $40/sf/yr | $40,000,000/yr |
| Trade Mart - Support offices | 1,500,000 sf | $60/sf/yr | $90,000,000/yr |
| Trade Mart - Total | 2,500,000 sf | — | $130,000,000/yr |
| Additional offices (separate) | 500,000 sf | $70/sf/yr | $35,000,000/yr |
| IC rent total (all space) | 3,000,000 sf | — | $165,000,000/yr |
| 1A. Average gross rent across all space | Value |
|---|---|
| Total area (sf) | 3,000,000 |
| Total annual rent ($/yr) | $165,000,000 |
| Average gross rent ($/sf/yr) | $55.00/sf/yr |
| 1B. Operating expense assumptions | OpEx ($/sf/yr) |
|---|---|
| Low | $17.75 |
| Mid | $19.38 |
| High | $21.00 |
| 1C. Cap-rate assumptions | Cap rate |
|---|---|
| Low cap | 5.5% |
| Base cap | 6.0% |
| Higher cap | 7.0% |
| High cap | 8.0% |
| 1D. Property-tax uplift assumptions | Value |
|---|---|
| NYC Class 4 assessment ratio | 45% |
| NYC Class 4 tax rate | 10.848% |
| Illustrative phase-in | 50% / 75% / 100% |
| 1E. CRT assumptions | Value |
|---|---|
| Rent base proxy ($/yr) | $165,000,000 |
| Effective CRT rate | 3.9% |
| Coverage factor | 70% / 85% / 95% |
| CRT gross upper bound ($/yr) | $6,435,000 |
| 1F. Vacancy context | Value |
|---|---|
| FiDi Financial East office vacancy (a) | 26.0% |
| FiDi Insurance office vacancy (a) | 29.5% |
| Retail storefront vacancy in FiDi/BPC (Q3 2024) (b) | 24% |
| Source note | (a) Cushman & Wakefield, Q4 2025; (b) Small Business Services |
| 2. Real-estate logic | Definition |
|---|---|
| Gross rent | Total annual rent collected |
| OpEx | Building operating expenses |
| NOI | Gross rent minus OpEx |
| Implied value | NOI divided by cap rate |
| 2A. NOI per square foot | Gross rent ($/sf/yr) | OpEx ($/sf/yr) | NOI ($/sf/yr) |
|---|---|---|---|
| Low expense | $55.00 | $17.75 | $37.25 |
| Mid expense | $55.00 | $19.38 | $35.62 |
| High expense | $55.00 | $21.00 | $34.00 |
| 2B. Total NOI on 3.0M sf | NOI ($/sf/yr) | Area (sf) | Total NOI ($/yr) |
|---|---|---|---|
| Low expense | $37.25 | 3,000,000 | $111,750,000 |
| Mid expense | $35.62 | 3,000,000 | $106,860,000 |
| High expense | $34.00 | 3,000,000 | $102,000,000 |
| 2C. Implied value from capitalized NOI | Cap rate | Implied value ($) | Value per sf |
|---|---|---|---|
| Low expense | 5.5% | $2,031,818,182 | $677.27/sf |
| Low expense | 6.0% | $1,862,500,000 | $620.83/sf |
| Low expense | 7.0% | $1,596,428,571 | $532.14/sf |
| Low expense | 8.0% | $1,396,875,000 | $465.63/sf |
| Mid expense | 5.5% | $1,942,909,091 | $647.64/sf |
| Mid expense | 6.0% | $1,781,000,000 | $593.67/sf |
| Mid expense | 7.0% | $1,526,571,429 | $508.86/sf |
| Mid expense | 8.0% | $1,335,750,000 | $445.25/sf |
| High expense | 5.5% | $1,854,545,455 | $618.18/sf |
| High expense | 6.0% | $1,700,000,000 | $566.67/sf |
| High expense | 7.0% | $1,457,142,857 | $485.71/sf |
| High expense | 8.0% | $1,275,000,000 | $425.00/sf |
| 2D. Plain-English economic benefits | Value |
|---|---|
| Benefit 1 | Fills vacant office and retail space |
| Benefit 2 | Creates steady rental income |
| Benefit 3 | Improves NOI |
| Benefit 4 | Supports stronger building values |
| Benefit 5 | Helps owners refinance, reinvest, and stabilize assets |
| Benefit 6 | Can improve confidence in the broader FiDi market |
| 3. Job-counting treatment | Value |
|---|---|
| Approach | This module does not claim incremental job creation, to avoid double counting with separate Trade Mart operations, tourism, and construction modules. |
| Why | It shows how filling vacant space can improve building income, support asset value, and expand recurring city revenue. |
| Caveat | Stabilizing vacant space can still support employment indirectly by making buildings more viable and attracting more tenants, activity, and investment. |
| 4A. Commercial Rent Tax (CRT) | Low | Mid | High |
|---|---|---|---|
| CRT gross upper bound ($/yr) | $6,435,000 | $6,435,000 | $6,435,000 |
| Coverage factor | 70% | 85% | 95% |
| CRT modeled ($/yr) | $4,504,500 | $5,469,750 | $6,113,250 |
| Rounded CRT modeled ($/yr) | $4,500,000 | $5,500,000 | $6,100,000 |
| 4B. Property-tax capacity uplift (mid-case illustration) | Value |
|---|---|
| Mid-case implied value ($) | $1,781,000,000 |
| Assessment ratio | 45% |
| Class 4 tax rate | 10.848% |
| Phase-in | 75% |
| Property-tax capacity uplift ($/yr) | $65,206,140 |
| Rounded property-tax capacity uplift ($/yr) | $65,200,000 |
| Formula: Property-tax capacity uplift ≈ market value × 45% × 10.848% × phase-in | |
| 4C. Total modeled recurring NYC revenue capacity | Low | Mid | High |
|---|---|---|---|
| Property-tax capacity uplift ($/yr) | $65,200,000 | $65,206,140 | $65,200,000 |
| CRT modeled ($/yr) | $4,504,500 | $5,469,750 | $6,113,250 |
| Total recurring NYC revenue capacity ($/yr) | $69,704,500 | $70,675,890 | $71,313,250 |
| Rounded total recurring NYC revenue capacity ($/yr) | $69,700,000 | $70,700,000 | $71,300,000 |
| 4D. Plain-English tax benefits | Value |
|---|---|
| Benefit 1 | More leased space can support higher building income |
| Benefit 2 | Higher income can support higher property value |
| Benefit 3 | Higher value can support higher NYC property-tax revenue capacity |
| Benefit 4 | Leased commercial space can also generate CRT revenue |
| 4E. Scope note |
|---|
| This section models recurring NYC revenue capacity from stabilized leasing and value. It excludes one-time transaction taxes such as RPTT, RETT, and mortgage recording tax, and keeps jobs separate to avoid double counting. |
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