Silicon Alley, aka Midtown South, is the area north of the financial district and south of Midtown that has become the preferred location for high-tech and new media firms on the East Coast.
In late 2010, Google purchased 111 Eighth Avenue, one of the largest buildings in Manhattan and an icon of the Chelsea neighbourhood. The move cemented the area as the geographic centre for technology and new media in New York City. The Huffington Post signed one of the largest deals of the first quarter of 2011, a sublease at 675 Avenue of the Americas for 50,000 square feet. Both Yahoo! and Twitter are currently in the market.
After a significant decrease in 2009, high-tech employment has been increasing in NYC every quarter. By 2014, Manhattan should see employment levels equal those of the peak back into 2001.
The rebound in technology has fuelled much of the real estate rebound for Midtown South. For the sixth straight quarter, the overall vacancy rate dropped, registering 8.2 per cent – one of the lowest in the country and better than the overall Manhattan market. Given the relatively low tenancy rate, tenants are finding options limited and many landlords seem prepared to raise rents.
Jones Lang LaSalle are market experts; for more details on this analysis or to discuss how it will impact your company’s real estate and projected growth plans contact us first: Sean Black or Bill Peters.
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