The Real Deal New York

Vacancy rates plunge further in Midtown South

Tech companies flooding into the area -- and pushing rents up

April 18, 2014 10:15AM

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Sheldon Cohen and 770 Broadway

Driven by low vacancy rates, Lower Manhattan office landlords have raised monthly rents by 4 percent since the year started, according to a report from commercial brokerage CBRE.

Of note, the influx of technology companies into the area has played a key role in the rising rents citywide. Not surprisingly, the Midtown South office market — a veritable tech haven — boasts the lowest vacancies in the city, around 6 percent. Asking rents are $63 per square on average in the neighborhood, a 5 percent increase year-over-year. Meanwhile, Midtown asking rents rose by 7 percent to $74.27 per square foot.

“Leasing is strong and the tenants are accepting the pricing,” CBRE’s Sheldon Cohen told the New York Post.

The majority of jobs added in the first quarter were tech firms, including Amazon, Facebook, LinkedIn, eBay and Yahoo. [NYP]Mark Maurer

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