City improvements mean higher commercial rents

Areas in New York City where the city has poured money into improving streets and public spaces have seen commercial rents rise, Crain’s reported.

According to a recently released study by commercial real estate brokerage J. Liff Co., the Meatpacking District and the Flatiron area have seen the largest increases in rents and greatest decreases in vacancy rates. And it’s no coincidence that these areas were prioritized for beautification by the Bloomberg administration, the report showed, according to Crain’s.

Last month, office availability rates in the Meatpacking District were 3 percent, the lowest in the city and down from 12 percent from three years ago, the report said. In the Flatiron District, there was a 30 percent decrease in availability in the area since 2009, to 9 percent. Both areas have had bike lanes, and pedestrian plazas were put in recently.

“So much of [renting office space] is about attracting young talent,” Matt Bergey, a broker with CBRE, told Crain’s. “Midtown south is a lot more friendly than midtown in a visual sense.” [Crain’s]