High-tech tenants have catalyzed demand for Midtown South’s new product

0 CommentsBy

  • High-tech users have accounted for 53 percent of leasing in Midtown South new developments as tech firms have put talent attraction and retention at the forefront of real estate strategies. However, leasing has been led by non-traditional technology tenants. Mastercard signed a 212,500-square-foot at 150 Fifth Avenue for its tech division, while healthcare-tech firm Flatiron Health took 107,000 square feet at 161 Avenue of the Americas.
  • Despite being Manhattan’s traditional creative hub, new developments have also attracted financial services and insurance tenants to Midtown South. 10 boutique asset managers have opened offices in the market’s new product, while insurance firms Aetna and Argo Group have signed sizeable leases at 161 Avenue of the Americas and 413 West 14th Street, respectively.
  • Starting rents for transactions in new developments average $100.13 per square foot. The market is also anticipating more new supply in the future, as 2.0 million square feet of availability is expected to deliver by 2023.