With the recent news of JPMorgan Chase potentially considering a move to new construction on the Far West Side or Downtown, I thought it would be interesting to see what industries have been most actively pursuing new development sites. Looking back over the last four years, there has been over 6.9 million square feet of space leased and preleased within seven new sites throughout the city. But which industry sectors have been the most active?
To no one’s surprise, the TAMI (tech, advertising, media and information) sector leads all industries, and accounted for 47.6 percent of the square feet leased in these new developments. This group of tenants is active on all new development projects throughout Manhattan leasing space at the World Trade Center, the Hudson Yards, Midtown and Midtown South. The government sector comes in second and accounts for 21.9 percent of the square footage leased, as this industry is solely focused on Downtown development. Rounding out the top three is the retail sector, accounting for 17.0 percent of the office space leased. This industry focused most if its attention on the Far West Side and Midtown South. So with all of this leasing activity, where are the financial firms?
With minimal growth in the financial services industry over the past four year, this sector has not been active leasing space at new development sites and only accounted for 2.8 percent of the square footage leased. Oddly enough, this sector had the most number of leases signed at 11, with nine of those being hedge funds and asset management firms signing leases at 250 West 55th Street. However, these smaller financial firms averaged only 17,690 square feet per lease, while the nine TAMI completed transactions averaged a significantly higher square footage at 368,522. The nine TAMI transactions include Conde Nast’s 1,186,357 square feet at 1 World Trade Center, Time Warner’s 1,100,000 square feet at 60 Hudson Yards, and Group M’s 515,457 square feet at 3 World Trade Center.
A mega-deal by JPMorgan Chase would definitely shift this square-footage breakdown, but also leave some big holes in Midtown buildings.