Albany, NY -- On Tuesday, Assemblymember Grace Lee passed bill A08676, to renew the Lower Manhattan Relocation and Employment Assistance Program (LM-REAP), a vital economic development tool that has supported job creation and business growth in Lower Manhattan for over two decades.

With commercial leasing activity at historic lows, the extension of LM-REAP comes at a pivotal moment for the area’s economic recovery. In 2024, Lower Manhattan saw its worst leasing year on record, with activity 40% below the five-year average. Office vacancies have reached a staggering 24%, surpassing even the fallout of 9/11 and the 2008 financial crisis, with more than 20.8 million square feet currently available for lease.

The LM-REAP program authorizes relocation and employment tax credits to businesses that move into designated areas of Lower Manhattan, encouraging investment and job creation. The program has been especially critical for small businesses that depend on nearby office workers and consistent commercial activity.

"With office vacancies at record highs and commercial leasing activity at historic lows, Lower Manhattan is at a critical juncture. Renewing and expanding LM-REAP is about meeting this moment with real solutions - bringing businesses back, creating jobs, and supporting the small businesses that rely on a vibrant commercial core,” said Assemblymember Grace Lee. “This program has been a cornerstone of recovery and now, will continue to be. I’m grateful to the Downtown Alliance and all our partners for their tireless advocacy and commitment to revitalizing Lower Manhattan."

"The renewal of LM-REAP is a big victory for Lower Manhattan at a pivotal time,” said Jessica Lappin, President of the Downtown Alliance. “We need every tool in our toolbelt as we continue to navigate the lingering effects of the pandemic. We applaud this smart investment in the future of our neighborhood."

Additionally, the bill renews the broader citywide Relocation and Employment Assistance Program (REAP) and establishes a new citywide pilot program - the Relocation Assistance Credit per Employee Program (RACE) - designed to deliver a focused benefit for new companies taking space in New York City and encourage the leasing of underperforming office space. Firms that qualify and receive this benefit will be new to New York City, hire employees, utilize underperforming office space, and meaningfully contribute to the City's economic development.