July 10, 2017
Thanks to the success of the new office towers at Hudson Yards and Manhattan West, the percentage of vacant office space dropped to 11.2% at midyear 2017.
“West Side — and now far West Side — locations have become increasingly desirable as many principals and employees live in Central Park West, Chelsea, Hell’s Kitchen and other adjacent neighborhoods,” said Tristan Ashby, vice president and director of New York research for JLL.
Strong leasing in new developments drove the average asking rent in Midtown up to $83.19-per-square-foot in the second quarter of the year. Big leases like Blackrock’s recent lease at Hudson Yards are rapidly filling the available space.
But what new development gives, more new development might take away. Large blocks of available space will continue to loom over Midtown for the next few years, potentially leading to oversupply and rising vacancies, with upcoming availabilities at 550 Madison Avenue; 425 Park Avenue; 1100, 1114 and 1271 Avenue of the Americas; and 1 Columbus Circle, among others.
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