Office sharing companies have swallowed up nearly 700,000 s/f of Flatiron District office space, according to a new report from the neighborhood BID.
Currently there are 26 co-working and incubator office spaces in and around the district, occupying more than 680,000 s/f.
The report, Flatiron: Where Then Meets Now, released at the BID’s annual real estate forum, noted that, since the beginning of 2014, more than 340,000 s/f of co-working space has been added to the district.
WeWork is the largest tenant of shared office space in the district, with its three locations occupying a combined 226,300 s/f.
With 800 new apartments being built and a plethora of new businesses, Flatiron/23rd Street Partnership BID executive director Jennifer Brown said, “Flatiron continues to grow and flourish in the 21st century, attract greater numbers of people who are establishing roots here, and is home to a diverse and prospering array of businesses.
“Over the last nine years, we have experienced profound changes for the better. The neighborhood of today is one with a reputation for cutting-edge technology, homegrown talent, and diversified industries.”
Bordered by 21st and 28th streets and Sixth and Third avenues, the Flatiron BID boundaries cover more than 21 million square feet of commercial space and house more than 4,500 commercial tenants and 570 ground-floor businesses.
During a special panel discussion to launch the report, Real Estate Weekly reporter by Holly Dutton discussed “The Synergies of Real Estate and Coworking Culture,” with Terri Keogh, president, Castro Properties; Grant Greenspan, principal, Kaufman Organization; Andy Smith, director of marketing, operations, and creative, The Yard; and, Adam Hanina, chief executive officer, AiCure.
Panelists noted that, aside from formal co-working and incubator spaces, there are more than 100 workspaces available for rent in a wide variety of office environments within the district.
Broadway has become a major interior design corridor in the Flatiron District as exciting showrooms and home furnishing stores have opened. In September, Porcelanosa, a Spanish retailer specializing in tile, kitchen and bath products, completed its renovation of the former Commodore Criterion building.
That same month, Ethan Allen confirmed it has signed a lease for 8,000 s/f at 915 Broadway, in close proximity to relative newcomers Madura and Global Home.
With a concentration of gyms and studios, the Flatiron District has been dubbed the “Fitness District,” with 47 fitness gyms and studios.
Fitness retailers are following the crowds, and retailers Athleta Flatiron, New Balance, Nike Running, Bandier, and Sweaty Betty now call Flatiron home. In 2015, lifestyle brand Tory Burch launched Tory Sport; the activewear brand’s first stand-alone store will open near the Flatiron District in 2016.
The report found that overall vacancy rate in the Flatiron BID decreased from 8.5 percent in 3Q 2014 to 6.1 percent in 3Q 2015. This is down from the five-year average vacancy rate of 6.7 percent.
The average price per square foot for Class A and B office space in the Flatiron District was $72.59 in 3Q 2015, which is 3.5 percent higher than the price per square foot of $70.07 in 3Q 2014 and 30.7 percent higher than the price per square foot of $55.51 in 3Q 2013.
The estimated residential population of the Flatiron District is 253,305 in 2015. It is projected that the population will rise by 3.98 percent by 2020.
There are currently more than 800 residential units planned or under construction within the BID boundaries.
The district also has 3,485 hotel rooms with more than 500 rooms in development.
And the retail vacancy rate stands at 6.6 percent. There are 27 total available retail spaces at 24 locations.
Flatiron is now home to more than 200 restaurants, bars, and quick and casual food establishments, with 25 opening their doors in 2015, and another 10 on the horizon.
In 2014, ridership from Flatiron’s seven subway stations was 44.5 million, or 2.60 percent of the city’s total ridership.
And NYC Bike Share now has 13 locations with 502 docking spaces in Flatiron.