A growing number of companies craving large, new spaces moved out of Manhattan’s Midtown South neighborhood due to lack of available space. But the area — long known for ornate limestone landmark buildings — is finally getting some new construction.

Developers are planning to deliver 2.8 million square feet of new office space by 2021 in Midtown South, according to JLL.

Even after these new office buildings open, the market may still be constrained by supply — the new spaces add up to just 4.3% of the existing inventory.

The market currently offers just two existing, directly available blocks of space greater than 100,000 square feet. The percentage of space vacant in Midtown South is just 5.7%.

The recently announced Essex Crossing project is expected to deliver more than 300,000 square feet to SoHo—Manhattan’s smallest office submarket—by 2021. It will be the first significant block of office space in the Lower East Side and could spur further construction in non-traditional office districts, according to JLL.

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