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22-Story Tower Adds 248 Apartments to Downtown Rochester Market
A 22-story residential project cleared planning review this week and will add 248 units near downtown Rochester.
How we reported this
The Rochester Planning Commission approved construction of a 22-story apartment tower at 245 State Street on July 6.
The decision arrives as downtown Rochester records its lowest vacancy rate in five years. City records show net migration into Monroe County increased by 1,800 residents in 2025, with many settling in the core business district rather than suburbs. The new tower will sit two blocks from the Rochester Public Market and one block from the Blue Cross Arena, both sites that have drawn steady foot traffic since arena renovations finished in 2024.
Supply and Demand Dynamics
Greater Rochester Association of Realtors data released last month placed the downtown apartment vacancy rate at 4.1 percent for the second quarter of 2026. Average asking rent for a one-bedroom unit reached $1,525, up 7 percent from the same period in 2025. The State Street project will lease units starting at $1,650 for studios and $2,050 for one-bedrooms, figures contained in the developer’s filing with the city’s housing office.
Local detail shows the building will include 40 units reserved for households earning up to 80 percent of area median income under the city’s inclusionary housing program. That requirement stems from a 2023 zoning update applied to parcels within the Center City District. The tower will also feature ground-floor retail space leased to a grocery operator, a condition attached by commissioners during the July 6 hearing.
Next Steps for Residents and Buyers
Leasing applications open August 15 through the developer’s portal and the Rochester Housing Authority waiting list. Prospective tenants can attend an information session scheduled for July 22 at the Rochester Central Library on South Avenue. Construction is slated to begin in September 2026 with first occupancy targeted for late 2028.
Buyers monitoring the broader market should note that comparable new units delivered in 2024 at the nearby Sibley Square building leased 92 percent within nine months, according to property management filings. The State Street tower’s timeline will determine whether additional pressure on rents materializes before the next reporting cycle in October.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.