New York City is increasing its investment in the revitalization of Fifth Avenue in Manhattan, a popular shopping and commercial hub that attracts tourists. According to Mayor Eric Adams, the city will now allocate $400 million for the project, which was first announced in 2022, as the initial funding request was only $152.7 million.
The primary goal of redevelopment is to make the area, situated between Bryant Park and Central Park, more pedestrian-friendly. The redesign plans aim to expand sidewalks by 46 percent, reduce the number of traffic lanes from five to three, provide more shade cover, and reduce pedestrian crossings by approximately 33 percent. Currently, Fifth Avenue is 100 feet wide, consisting of two 23-foot sidewalks.
Additionally, the plans call for making the area safer, greener, adding an underground sewer, and upgrading the main water, according to Adams.
This project marks the first redesign in Fifth Avenue's 200-year history.
The increased investment in the transformation is part of Adams' budget for fiscal year 2026, which also includes major allocations for affordable housing.
Already, the redo has attracted a significant amount of commercial activity. There has been $3.9 billion in sales volume posted on Fifth Avenue across more than 10 transactions since 2023, according to data from the Mayor's office. Annually, the area generates $111.5 billion in economic output.
“New York City’s Fifth Avenue is a global destination that has long been an engine for the city’s bustling economy,” said New York City Economic Development Corp. President and CEO Andrew Kimball.
"The Future of Fifth project symbolizes this administration’s commitment to leveraging public space as fuel to bolster our economy and deliver 24/7 live, work, and play neighborhoods.”
The project is set to be completed this summer.
Meanwhile, New York City is expected to be severely impacted during a potential economic slowdown triggered by a global trade war. The New York City Tourism + Conventions (NYCTC) projects that just 64.1 million people will visit the city, resulting in a direct spending loss of more than $4 billion in the metro.
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