JPMorgan Chase is the first to take advantage of the new rezoning in Midtown East Manhattan. The New York City Department of Planning passed the East Midtown Rezoning in August of last year.
In the short-term, the rezoning could help to counteract the westward and southward migration that Midtown has been experiencing. The rezoning also incentivizes east side owners to redevelop with floor area ratio (FAR) increases and air rights opportunities. The rezoning – combined with the Long Island Railroad East Side Access completion in 2022 – will make the east side even more connected and attractive for tenants considering new office space.
In the long-term, the rezoning could spur up to 6.8 million square feet of new commercial space and 6.5 million of renovated space in a market where the average age of an office building is 75 years old.
JPMorgan Chase is the first to make the most of the rezoning. JPMC announced it would be redeveloping its current headquarters at 270 Park Avenue, using air rights from Grand Central Terminal to build a 2.5-million- square foot tower, replacing the current 1.35 million-square-foot tower. The financial services giant is planning to break ground early 2019 and expects to complete its new home by 2024.