Silicon Alley rents up 44 percent over past two years

Growth trails only San Francisco's SOMA and Redwood City

Midtown South
Midtown South

Office rents along Silicon Alley, Midtown South’s booming tech hub, have increased by 44 percent in the past two years.

The trend reflects double-digit growth in tech submarkets across the country, according to CBRE’s U.S. Tech-Twenty report, cited by the New York Observer.

“I think the increase in rents reflects the amount of leasing activity and desire for tech companies to be in Midtown South,” Ross Zimbalist, senior associate at CBRE, told the Observer.

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And that momentum, he added, shows no signs of slowing anytime soon.

“Recent leasing velocity has been as great – if not greater – than the past 24 months,” Zimbalist told the Observer.

Only San Francisco’s SOMA district and Redwood City, Calif., which saw rents jump 51 percent and 45 percent, respectively, topped the spike in Midtown South. Mountain View, Calif., with a 42 percent growth, trailed just behind Silicon Alley.

The report from CBRE tracks employment and market conditions in 20 tech-heavy office markets across the country, including Austin, Denver, Baltimore and Los Angeles. [NYO] — Julie Strickland