Lower Manhattan conversion push (2001-2005)
After the September 11 attacks drove companies out of Lower Manhattan, office vacancy passed 20 percent. The city and federal government channeled Liberty Bond subsidies and tax breaks into residential conversions, turning empty towers into apartments.
Thousands of apartments emerged from converted offices, reviving the Financial District as a 24/7 neighborhood.
The district's residential base cushioned it when office demand fell again.
Public subsidies large enough to close the gap between conversion costs and apartment rents made Lower Manhattan work. Boston's smaller incentives are testing the same math.
