The FCBID has always maintained a commitment to providing educational and informational seminars to small business owners, the district’s largest constituent group. This year, the BID renewed its partnership with the Fashion Institute of Technology’s Enterprise Center in offering “ Tools of the Trade,” a series of courses created to introduce affordable, cutting-edge technology to small businesses looking to improve profitability.

The Enterprise Center is a business training resource for entrepreneurs. Located at the FIT campus at West 27th Street and Seventh Avenue, the Center offers information, skills, and resources to start-up businesses, developing enterprises, and freelance professionals.

This past year, the FCBID participated in a committee formed to explore the feasibility of creating a Fashion Technology Building in the Fashion District. The objective of the building would be to provide affordable space for midsize fashion companies that are in a growth mode and are in need of specific infrastructure and amenities that are prohibitively expensive.

The technology building would be built-out to include specialized software that addresses everything from design to shipping, warehousing, and EDI compliance. Amenities such as shared showroom space, a trend room, and computer training with on-site staffing would also be included. The building would be run by a non-profit organization that has yet to be established.

Also participating on the committee are GIDC, NYIRN, FIT, the US Department of Commerce, Con Edison, and ITAC. The committee was convened and is being led by a team from Winoker Realty. Further meetings are planned.

Over the past year, the FCBID Board and Officers have discussed the further economic development of this district. Much of the discussion has focused on the manufacturing zoning designation that specifically applies to side street buildings but affects the entire district.

The FCBID’s concerns over the efficacy of this zoning, as well as its unintended negative impact on rents and neighborhood investment, have been brought to the attention of City officials, including the Department of City Planning. Since manufacturing has diminished in New York City, the FCBID stressed the importance of the City’s establishing some sort of meaningful mechanism for stabilizing this segment of the garment industry. The number of jobs lost clearly indicates that neither the zoning, nor any other current initiative, has been successful.

The City has made it very clear that it is not currently entertaining proposals to make any change to the status quo, meaning that manufacturing will most probably continue on its current downward course. The FCBID will continue its efforts to prompt the City to address manufacturing and to encourage a more appropriate blending of the borders of our district with the proposed Hudson Yards Development, insuring that this district becomes an inviting gateway rather than a barrier to the West Side.

Each year the FCBID produces an Economic Profile of the district which tracks the employment, economic impact, retail and real estate statistics of the neighborhood. Together with its annual tenant survey, the FCBID utilizes the information gathered to better understand the dynamics of the neighborhood and various trends within its constituency in order to appropriately develop new programs and refine existing ones. The information is also used extensively by government officials and the real estate community.

The 2003 report indicates that the district was unable to escape the effect of the lackluster national economy with vacancies up a bit, rents holding steady or slightly decreasing, and apparel manufacturing continuing its practically inexorable decline in jobs. However, the district retail market remained strong, and fashion wholesale-related jobs increased.

With the exception of the manufacturing jobs’ decline, which is part of a continued decades-long national trend, the FCBID believes the district will rebound as the overall City and national economies improve. Although the special garment district zoning limits the pool of potential tenants in certain sections of the district, there are indications that the district is becoming increasingly attractive to tenants seeking loft-style spaces in an affordable Midtown location.

Among the factors which should influence the positive development of the district in the future are the proposed New York Times building at Eighth Avenue and 40th Street; the proposed renovation of the Farley Post Office at Eighth Avenue and 33rd Street; the proposed Marriot hotel at Sixth Avenue and 39th Street; and the proposed Hudson Yards development which includes a residential component for the section of the district between Eighth and Ninth Avenues.

Findings of the Economic Profile include:

• Fashion Industry” manufacturing jobs in 2002 declined 19.3% from 2001 figures to 9,788 employees.

• Fashion Industry” wholesale jobs increased slightly from 17,792 in 2001 to 17,864 in 2002.

• As of the 4th quarter of 2002, total “Fashion Industry” jobs represented 33.5% of district employment, its lowest level ever. It is important to note that while fashion industry jobs represent about one-third of the district, fashion (including apparel, textile and accessories) showrooms, offices, suppliers, services, and factories still take up about 50% of the space in the district and represent slightly more than half of the district’s businesses, according to our survey of space usage conducted in Spring 2003.

• Total space availability rose from 13.8% in 2001 to 14.5% in 2002. Increases were in both avenue and sides street buildings.

• Asking rents for both avenues and side streets generally either declined or held steady, depending upon the building.

• The retail vacancy rate stayed at 12.3%, and rents remained high across the board.

• Current residential retail potential is $152.7 million, and the employee market represents $944 million in retail potential. Both are expected to increase as area developments come on line.

The Economic Profile, as prepared by consultant Robert B. Pauls, is generally released in the fall and can be accessed in its entirety on the FCBID website at www.fashioncenter.com. Copies are available by contacting the FCBID office at 212.764.9600.

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