Stat of the Week: 65.3 Percent
With a vacancy rate of only 6.1 percent, Midtown South remains the tightest major market across the U.S., and since the start of 2013, the neighborhood has been in high demand from TAMI (tech, advertising, media and information services) tenants. Over the last three-plus years, the TAMI sector leased or renewed over 7.2 million square feet of office space, which accounted for 65.3 percent of the square feet leased in Midtown South. All other industries totaled only 3.9 million square feet over that same time period. Taking rents at the start of 2016 for all Midtown South leases are up 18.4 percent compared to 2013, while TAMI tenants are paying 19.2 percent higher today than they were three years ago.
With five submarkets in Midtown South, here is how the TAMI leasing activity by neighborhood stacks up since January 2013.
Madison/Union Square – Over 3.3 million square feet leased by the TAMI sector, which accounted for 68.9 percent of the submarket’s leasing activity. This is equal to 10.5 percent of the submarket’s total inventory.
Chelsea – Over 1.6 million square feet leased by the TAMI sector and accounted for 64.5 percent of the submarket’s leasing activity.
Hudson Square/West Village – Just over 1.1 million square feet leased by the TAMI sector, accounting for 64.0 percent of the submarket’s leasing activity.
Greenwich/NoHo – 836,973 square feet leased by the TAMI sector, accounting for 63.7 percent of the submarket’s leasing activity. Despite less than 1 million square feet leased by TAMI tenants, Greenwich/NoHo’s TAMI leasing activity was 17.6 percent of its total submarket inventory.
Soho – Only 298,307 square feet of leasing activity was from TAMI tenants, and with this sector accounting for only 47.8 percent of all transactions, it is the only submarket that had less than half of its space leased to these industries.