Tech/Digital Office Leasing in Midtown NYC
The research report highlights the growing influence of digital and
technology tenants in the Midtown South leasing market in Manhattan. While the Midtown market, dominated by
financial firms and law firms, has suffered due to downsizing, the Midtown
South submarket has one of the lowest vacancy rates in the entire country due
to the rapid expansion of digital and technology firms.
The report highlights several firms in the market for new office
space, including Facebook which is looking for 100,000 – 200,000 sf. It also highlights several recent leases that
were done by digital marketing firms such as Yelp, which at One Madison Avenue
signed a 37k sf lease.
The article states, “The majority of these companies are either expanding
or moving from other areas of New York, but some are new to the city, drawn to
Midtown South by both the appeal of its inventory, with open floor plans and
high ceilings, and a desire to be close to their competitors and clients.”
This trend has created the “Silicon Alley” submarket in Midtown South
which is now competitive with Silicon Valley and the Back Bay of Boston.
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