although manhattan still retains its primary position in the garment industry because of its position in the design and sales function, it must take strong measures to slow down the exodus of productions facilities from its present location in lower manhattan (chinatown) the analysis of the availability and cost of factory space in chinatown has been undertaken to counter the acute scarcity of space due to conversion to more profitable residential and office use. one strategy for countering such real estate pressure is to develop industrial condominiums and cooperatives. such a strategy is dependent on retention of the price level, availability of public and private financing, pooling of financial and managerial capacity, and land use regulations that will support industrial ownership continued escalation of real estate prices, fueled by the strong demand for office and residential space, remains the principal obstacle for the retention of garment production in manhattan