February 27, 2017
Companies are crowding into the office spaces of South Midtown, drawn by the submarket’s reputation for innovation, and a growing community of technology companies.
But developers are building new office buildings even faster, driving the percentage of vacant space to 8.0% in January 2017, up 50 basis points from the month before and several percentage points from 12 months before. That’s still a low enough vacancy rate to keep rents rising to an all-time high of $75.52.
“Midtown South remains one of the tightest major markets… despite the increase in vacancy,” according to JLL’s latest Monthly Market Report.
Developers opened new office space in large buildings like 413 W. 14th St., 412 W. 15th St. and 540 W. 26th St., in addition to many smaller office projects in the area stretching from the Flatiron Building down to Chinatown.
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