Midtown South is no longer just for start-ups, architects and free-wheeling technology firms. Companies that traditionally pay high rents for space are moving into the district, as expansive office space opens in new and renovated buildings.
So far in 2017, nearly half of the office space leased in Midtown South (43%) was rented by companies in the finance, insurance, and real estate (FIRE) sector or the professional and business services (PBS) sector. By comparison, in 2014, 71% of the square footage of office space was rented by companies in the technology, advertising, media and information (TAMI) sector, according to research from JLL.
Asking rents in Midtown South have increased at a compound average growth rate of 9.2% since 2011, as new office spaces have opened and vacancy rates have stayed low.