Category Archives: Midtown South

New York’s geographically diverse workforce creates opportunities for law firms to relocate beyond traditional submarkets

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New U.S. Law Firm Perspective outlines trends shaping the landscape

LawFirm_Flexibility_webAre you exploring the full gamut of your space options in New York City?

With market dynamics shifting and employee commuting patterns changing over recent years, law firms are increasingly focusing office searches west and downtown where newer, lower- or comparatively-priced space is available.

In JLL’s 2014 Law… Read More

What’s going on in New York City?

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TAMI leasing activity surges… and other Q3 insights from NYC

NYCIn 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… Read More

New York office market posts lowest overall vacancy rate since Q3 2008

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  • Vacancy rates down in all submarkets, building classes
  • Overall Manhattan rents continue to rise in 3rd quarter of 2014

NYC_blogDespite moderate leasing activity during the third quarter of 2014, New York’s office market posted sharp drops in vacancy rates in every submarket and property type, according to JLL. The city’s overall vacancy rate has fallen to its lowest level since the third quarter of 2008.

Manhattan’s overall vacancy rate dropped to 9.7 percent this quarter, a decrease of 8.5 percent (or 0.9 percentage points) from 10.6 percent at midyear 2014. The city’s Class A vacancy rate fell to 10.6 percent in the third quarter of 2014, a decrease of 7.8 percent (or 0.9 percentage points) from 11.5 percent the previous quarter.

“The final quarter of the year is typically the most active in Manhattan, and brokers reported brisk building touring activity over the summer,” said Tristan Ashby, director of New York research.

“Going forward, we expect to see much higher rents throughout the city as vacancy rates continue to tighten. There are increasingly fewer opportunities at the very top end (Plaza Trophy) and very low end (Downtown Class B) of the market, or anywhere in Midtown South. Longer-term, large blocks will begin entering the market in Midtown beginning in 2018 as new construction, redevelopments and several large blocks vacated by relocating tenants come online.”

Overall average asking rents in New York rose to $64.91 per square foot this quarter, an increase of less than one percent from $64.57 per square foot at midyear 2014. The city’s Class A average asking rent grew to $71.66 per square foot in the third quarter of 2014, an increase of less than one percent from $71.28 per square foot the previous quarter.

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New York office market among country’s tightest

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New York Chart of the Week: September 29, 2014

PowerPoint Presentation

  • Demographic trends over the last 10 years have favored urban over suburban office markets as young, educated professionals have moved to cities and stayed longer.
  • UBS and IBM (Watson) are two examples of corporations choosing to expand in Manhattan over cheaper suburban options.
  • The National CBD vacancy rate
  • Read More

Midtown Class A Vacancy Falls Sharply

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Manhattan Office Outlook | September 2014

MOU_Sep14JLL’s New York Research team has just released its September Manhattan Office Outlook – a monthly wrap-up of leasing activity in Manhattan, including Class A vacancy and asking rates, along with a snapshot of conditions in capital markets.

Report highlights are as follows:

Midtown Manhattan
Midtown Class A vacancy fell sharply in August to 10.7 percent from 11.2 percent in… Read More

Downtown now the last value proposition in Manhattan

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New York chart of the week: September 15, 2014

PowerPoint Presentation

  • Relocations have represented 56.3 percent of new Downtown leases from 2010 to present
  • Creative firms represent 33.0 percent of relocations since 2010–an indicator that “non-traditional” tenants have increasingly considered the market
  • Despite new construction activity and conversions, Downtown net effective rents have not kept pace with Midtown or
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July uptick in tech sector leasing activity

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JLL NYC Research: August Tech Monthly

High-tech_blogJLL’s Tech Monthly looks at activity in New York’s tech sector, including employment growth, leasing activity, venture capital funding and companies hiring.

Highlights of our August report include:

  • Tech sector employment in New York City increased by 5.2 percent year-over-year in June, again the largest industry growth among all major sectors.
  • Tech tenants committed to 350,910 square feet of recorded transactions
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Is the Penn Plaza/Garment submarket becoming the new TAMI frontier?

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New York Chart of the Week: August 25, 2014

PowerPoint Presentation

  • The TAMI (tech, advertising, media, and information) sector has increasingly migrated to the Penn Plaza/Garment District—the sector’s office footprint in the submarket has grown to 21 percent from 14 percent in 2012.
  • Though the TAMI sector occupies 46 percent of the neighboring Chelsea submarket, the sector’s Penn
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Manhattan Office Outlook | August 2014

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Midtown South experiences an uptick in July

ManhattanOO_Aug2014JLL recently released its Manhattan Office Outlook – a monthly wrap-up of leasing activity in Manhattan, including Class A vacancy and asking rates, along with a snapshot of conditions in capital markets. Report highlights are as follows:

Midtown Manhattan
Though leasing activity in Midtown was light for July, the Midtown Class A vacancy rate decreased to 11.2 percent… Read More

Sharp contrast between FIRE and TAMI in Manhattan markets…for now

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New York Chart of the Week: July 28, 2014

PowerPoint Presentation

* Includes 5,000+ square foot tenants

  • In Midtown South, TAMI (Tech, Advertising, Media & Information) tenants comprise 40.9 percent of space, while FIRE (Financial Services, Insurance & Real Estate) tenants occupy only 13.8 percent.
  • The opposite is true Downtown, where FIRE tenants make up 39.2 percent versus TAMI’s
  • Read More