Real Estate Wednesday: Tech Moves, Air Rights & the Commercial Growth of Sixth Avenue

6th aveThis week we have noticed a lot of commercial real estate changes for technology companies. With the tech industry growing rapidly in New York City, businesses are quickly outgrowing their spaces. Artificial Intelligence Company Clarifi signed a 17,000 square foot deal to relocate from Soho to Union Square. Additionally, the freight logistics software start up, Flexport, has also outgrown its office and has plans to relocate to Chelsea.

In order for JPMorgan Chase to build a larger and taller 270 Park Ave, the bank is purchasing around 680,000 square feet of air rights for move than $350/square foot ($238 million). Demolition is said to begin next year.

Sixth Avenue/Rockefeller Center is often thought of as an old school, very traditional area of Manhattan. What many people fail to notice is Sixth Avenue/Rockefeller Center is the king of office leasing for the second year in a row. For almost 20 blocks along Sixth Avenue office towers and major hotels line the street. In the past 2 years leasing along Sixth Avenue has increase almost 42%.  The only area of the city to see a larger increase would be the newly developed Hudson Yards. Although Sixth Avenue is home to many very traditional New York City staples, we have to remember not to discredit the area’s commercial real estate grown.