Despite the Fears, Dot-Coms Still Bring Juice to Manhattan Office Momentum

NEW YORK CITY-The A-class buildings are squeaky tight, but what of B and C? Their salvation will be found in internet growth.

By John Salustri | Updated on September 06, 2000

Forget about the fears associated with dot-coms-at least for the time being. According to a study released by Marcus & Millichap, Internet firms accounted for a quarter of all leases executed in Manhattan during the first three months of the new year. In January alone, tech firms closed nearly 630,000 sf of space here, compared to 252,500 sf a year earlier-a hike of 150%.

The real estate firm predicts that the continued growth of such companies will fuel demand for repositioned B and C buildings, if they “adequately accommodate these firms’ high-tech needs,” says Tonia J. Williams, the M&M executive who headed the research.

Manhattan’s direct overall vacancy is curently less than 6% according to the firm’s stats, and rents, now at $43.96 per foot, have enjoyed three years of increases.

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