NEW YORK CITY-Growth in the high-tech industry is helping to fuel an office market recovery--both nationally and locally--a report from Jones Lang LaSalle finds. According to JLL’s High-Technology Industry Report, of the 500,000 office jobs created in the US since early 2010, 25% have been in the high-tech sector.
As a result of this growth, established high-tech markets like New York are seeing vacancy rates for prime locations plummet. In Manhattan, Midtown South, where the companies tend to cluster, has the lowest vacancy rate--just 6.7%, the report found.
“Midtown South is ultimately an attractive area because technology companies have a tendency to be start-up companies, and to a large extent it has historically been an area that is populated with older buildings, rather than new class A glass and steel inventory,” Sean Black, a VP at JLL, tells GlobeSt.com. Black focuses much of his work on the tech sector and contributed to the report.
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