On Thursday, May 11, New York City announced the Manhattan Commercial Revitalization Program (M-CORE) to incentivize an upgrade of core Manhattan office space, with the goal of decreasing vacancy rates. The New York City Economic Development Corporation (EDC) hopes the renovations will increase office attendance in the properties and raise property values, estimating M-CORE could bring in between $750 and $844 million in net tax revenue gains.
Eligible building owners could receive partial real property tax abatement and stabilization, sales tax exemptions, and partial mortgage recording tax exemptions. The program would also allow landlords to not pay property taxes on the value of the renovations for up to 20 years. Buildings located south of 59th Street, constructed before 2000 and larger than 250,000 square feet, will be eligible for the program.
The agency plans to start accepting preapplications for the program on June 8, with a deadline sometime in August. The local experts at Ryan are available to answer questions and assist with the application process.
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- Steve Thompson