^ Good look at the 3 designs.
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Originally Posted by BrickellBased
Good news for skyscraper nerds that the high end is in high demand. Hopefully we start to see more high end office around the country.
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The problem with New York is, even though there is a lot of office space, and a lot of office buildings, most of them - especially in Midtown East - are 80 years or older. New York hasn't really done a good job of renewing it's office supply, mainly due to zoning restrictions. Midtown East was zoned
down, so most of the office buildings that could or would have been replaced would have had to be replaced with smaller buildings. Which was ridiculous. That all changed with the Midtown East rezoning. Meanwhile, the Hudson Yards was the city's effort to provide a space for the kinds of new office towers companies demand, it has proved more successful than really anyone thought.
Which brings us back to Midtown East. The largest, and really the only new significant office tower under construction is 270 Park Avenue, the headquarters of JPMC. It can't really be counted as an option, since it will entirely belong to JPMC.
Citadel, being the prime tenant at 350 Park, will get the best floors, and I'm sure some of the upper floors. The heavyweights like to be the anchor tenants in the new buildings. The smaller, upper floors of new buildings are some of the most expensive in the city. If you need a half million sf of space or more, you really want to be an anchor tenant in the early stages.
But when people wonder why new office towers are going up in the city, with a high vacancy rate, the issue is what's in demand. Not all office space is the same, and it's the newer office space that is in demand.