Saturday, October 6, 2012

Tech/Digital Office Leasing in Midtown NYC

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.

Alex Elawadi, 10 6 12

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