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As it has been for decades, the neighborhood that comprises the Fashion Center BID remains the heart and soul of New York City’s fashion industry. The concentration of designers and showrooms in this neighborhood offers the thousands of buyers for retail stores a lively and convenient location in which to conduct their purchasing. The area’s unrivalled concentration of market knowledge allows firms in the Fashion District to keep pace with rapidly-changing trends; and the concentration of talent and experience makes it easier for firms to find the people they need to succeed. The presence of Parsons School of Design within the BID area, as well as the Fashion Institute of Technology nearby, help ensure that the next generation of designers and fashion marketing executives are exposed to the great talent and institutional knowledge that the neighborhood has to offer.
However, while the fashion industry remains a large presence in the neighborhood, the area has evolved over time to encompass much more than simply fashion. Today, the Fashion District is home to over forty different industries and thousands of workers engaged in non-fashion related business. This growing diversity has not disrupted the functioning of the fashion industry, and indeed, the strategic importance of the BID area as a "Fashion District" is still evident. However, it seems that the area is not fulfilling its potential as a dynamic, diverse commercial district. To date, local economic development policies have neglected the neighborhood’s strengths and competitive advantages as a well-located commercial district in the heart of midtown Manhattan.
There has been a longstanding debate as to what policies make sense for this area. City policy has traditionally emphasized trying to maintain the full range of fashion related businesses. Some industry participants and outside observers have long believed that maintaining a base of apparel production and warehouse functions in the neighborhood is essential to the smooth functioning of the design, marketing and sales segments of the fashion industry. However, it seems this premise has not been borne out, as apparel production activity has steadily declined in the area over the years, while other segments of the industry have remained relatively stable. This evidence should prompt policy makers to take a new look at ways to enhance the headquarters, design, marketing and sales functions of the fashion industry in the Fashion District while also considering ways to diversify the area by cultivating the growth of other industries that are compatible with - and might even reinforce - the neighborhood’s role as the center for fashion.
In particular, City policies should look to leverage the presence of the fashion industry as a magnet for the other creative industries - music, media, theater, films, television, advertising, etc. - that have experienced growth in New York City over the last decade and have already established a small community in this area. At the same time, the City should consider a more comprehensive approach to sustaining the fashion industry citywide, with an emphasis on bolstering the competitive advantages of New York City-based apparel production. The approach should also include an effort to find alternative locations elsewhere in New York City for those fashion-related businesses that are important to the City’s economy but can thrive in lower cost locations outside of the Fashion District. In this way, the City can pursue complementary policies that both help support the overall fashion industry in New York City and also leverage the latent potential of the Fashion District as a more diverse hub of economic activity.
Pursuing a policy that takes advantage of the competitive strengths of the Fashion District, and seeks to realize its development potential, will yield substantial benefits to New York City. Improvements to the existing stock of commercial and industrial buildings can create opportunities to attract a more diverse industry base to the Fashion District. This would not only reinvigorate the neighborhood but would also help provide space for growing segments of the City's economy - a challenge that proved difficult for the City during the economic expansion of the late 1990s. Revitalization of the area will also stimulate growth in what has been an under-performing tax base, as higher paying tenants will increase the rent rolls and stimulate new investment in district property.
Finally, the continued evolution of the Fashion District into a mixed-use neighborhood, with a diverse tenant base, more interesting retail and a new residential community, would create a livelier district with around-the-clock activity and amenities. This new, dynamic Fashion District would serve as an ideal complement to Times Square's vibrant commercial and entertainment district and the future mixed-use community that is envisioned for the Hudson Yards area.
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