The second-largest office submarket by inventory in Midtown South, Chelsea is one of the more up-and-coming areas of the burgeoning macro neighborhood. With its total office stock just over the 17 million-square-foot mark, the submarket had traditionally been a haven for those looking for more affordable living. However, the completion of the attractive High Line and the massive Hudson Yards development project have kickstarted a bona fide resurgence for the area’s real estate sector.
Modern office and residential buildings are being built in the area, further increasing its stock of high-end space, contrasting with the bulk of its inventory consisting of older, boutique and creative office offerings. Chelsea’s appeal is its proximity to attractive amenities and availability of budget office space, most suitable for up-and-coming companies from the tech sector. Notable companies with offices in the district include Google at 111 Eighth Avenue, Verizon at 601 West 26th Street and Huffington Post at 675-691 Sixth Avenue.
Benefitting from a highly-skilled, young demographic, Chelsea’s office sector is on the rise, with vacancy in the low-9 percent range and average rents at an affordable-for-Midtown-South $76 per square foot. Its inventory of aging, formerly industrial buildings has been refurbished into startup- and creative-friendly office lofts, that have attracted both companies and workers to the area. Furthermore, its offering of dining and entertainment spots has only improved the submarket’s visibility.
Chelsea is served by a number of transit routes easing mobility throughout Manhattan, with New York City Bus routes M7, M10, M11, M12, M14 and M23 SBS all accessible here. New York City Subway routes in Chelsea include the 1, 2, and 3 services on Seventh Avenue, the A, C, and E services on Eighth Avenue, and the F and M services on Sixth Avenue, all highly attractive for potential workers and commuters alike. The 34th Street-Hudson Yards station on the 7 and <7> trains opened several years ago, with Chelsea as its main entrance.