The city’s Independent Budget Office is confident there will be enough demand for the glut of office space Mayor Michael Bloomberg’s Midtown East rezoning plan would create, but cautioned that tenants’ changing needs could lead to a surplus of space.
More than 50 million square feet of new space will serve as sufficient lodging for the base of commercial tenants expected to grow by 2040, according to a report from the agency. As the plan heads to City Council for a final vote next month, the report gives hope to the Bloomberg administration. Council member Dan Garodnick, whose district includes Midtown East, commissioned the report.
The IBO did, however, make one concession, noting that it may have overestimated the demand depending on tenants’ future needs. Companies tend to be more efficient with space these days and fit more employees into fewer square feet. [Crain's] — Mark Maurer