Avenue of the Americas has outperformed all Midtown core avenues in recent quarters. Since the first quarter of 2017, AofA has seen five straight quarters of positive absorption in the Class A segment- a total of 1.6 million square feet. It has also seen Class A vacancy stop for six consecutive quarters, from 10.7 percent in the fourth quarter of 2016 to 6.5 percent in the beginning of this year.
The corridor currently has the lowest vacancy rate when compared to the other major avenues, namely Madison, Fifth, Park, Lexington and Third Avenues, whose rates range from 9.1 to 11.0 percent.
Avenue of the Americas has attracted several large tenants, particularly drawing from the east side of Midtown. Most recently, Latham & Watkins signed a 407,000 square foot relocation from 885 Third Avenue. Blank Rome will also be relocating its offices from the Chrysler Building to 1271 Avenue of the Americas, taking 137,986 feet.
The recent success of Avenue of the Americas can be credited, at least partially, to landlords extensively renovating their properties to continue attracting tenants. Recent renovations have taken place at 1271, 1100 and 1114 Avenue of the Americas, which are all seeing benefits with recent leasing activity.