TAMI leasing activity surges… and other Q3 insights from NYC
In our latest report, New York Office Insight, JLL highlights some of the more interesting trends we are seeing take shape across the New York office market, with specific emphasis on happenings as seen at the end of the third quarter.
New leases drive YTD activity
As opposed to the recovery period where most large transactions were renewals, in 2014 YTD, 14 of the top 20 leases have been new leases. What does this point to? Building confidence. Tenants have clearer visions of their futures and business models, while landlords believe they will be able to land large tenants at higher rents.
TAMI leasing activity surges
New York’s creative industries are having an outsized impact on the city’s office market, driving both demand and pioneering new markets. TAMI (Technology, Advertising, Media and Information) tenants have committed to more than 6.6 million square feet YTD, and represent 32.7 percent of total square feet leased across all industries.
Non-traditional tenants propel Downtown leasing
Downtown vacancy rates are at two-year lows (10.6 percent), driven by relocations from the considerably more expensive Midtown and Midtown South markets. Who is spearheading this charge? That would be TAMI companies, representing 33.4 percent of migrations since 2013.
To read more about these trends, and for other key findings, check out the full report here.