Helping Innovators – Like You – Stay Ahead of the City’s Fast-Moving Office Real Estate Market
C&W Business Consulting Managing Director Jeff Lessard discusses the latest trends in workspaces for technology companies.
C&W is the exclusive sponsor for TechCrunch’s 2014 Disrupt event in London (October 20-21). We’ll see you there!
News You Can Use: Stay up to date on what’s happening in NYC’s high-tech industry.
C&W Tech Index:
Closely analyzing the trends impacting the office market, specifically buildings that cater to the technology industry.
A Market Grows
Today’s Brooklyn is the coolest
AND hottest market in the U.S.!
The demographic changes in Brooklyn over the past 15 years have been dramatic. Since 2000, the population has increased by 5.0%, thanks in large part to the influx of millennials (those born between 1980-2000). Since 2000, Brooklyn’s population between the ages of 25 and 34 has exploded, up more than 18.5% at a time when that age group has increased only 7.6% across the U.S. as a whole. So, it’s not surprising that burgeoning start-up firms that want to tap into a younger work force would want to locate in Brooklyn.
The problem is that there is not enough space in Brooklyn for all the companies that want to locate there.
Evolution of a Startup
Technology companies have a unique evolutionary pattern. The real estate lifespan of a startup is undeniably distinctive and requires a plan at every stage. Growing from a simple idea hatched around a kitchen table to an initial expansion into the corporate office market and, then, evolving into a thriving international headquarters involves executing a comprehensive strategy.
C&W is by your side every step of the way
Discover Key Real Estate Issues in Your Current Stage of Evolution
Manhattan has become a tech hub for businesses of all sizes – second only to Silicon Valley. This technology-led growth is transforming real estate in the City. Clustering in Midtown South and Brooklyn, TAMI companies are turning these submarkets into the tightest and fastest-growing in the nation.
Technology, Advertising, Media, Information Businesses
With tech sector growth nationwide, certain cities are becoming “tech hubs,” including New York, San Francisco, and Washington, D.C. The New York Metro area has the largest technology workforce in the U.S.
Vital to tech companies, venture capital investment has increased by more than 120% since the end of the recession, climbing to over $20 billion through the first half of the year.
New York is in the midst of becoming a technology mecca and is now second only to Silicon Valley as a favorite of venture capitalists.
Companies from all over the technology world are establishing a footprint in NYC. If Silicon Valley is the brain of the global tech industry, The Big Apple is certainly its creative soul.
TAMI employment remains robust with 66,000 jobs added since 2004. In sharp contrast, financial services employment rose by only 5,300 jobs over the same period.
The creative and technology sectors are redefining Manhattan: In the first three quarters of 2014, leasing by TAMI tenants eclipsed the more traditional office-using sectors and accounted for nearly 40% of total activity.
Media companies dominated TAMI leasing across all three markets in the first half of the year, led by Time Warner in Midtown, Sony in Midtown South and Time Inc. in Downtown.
Rents are expected to rise as TAMI tenants remain active. The TAMI sector currently represents the largest segment of tenants in the market.
The drive to improve collaboration, increase worker productivity, and reduce costs is compelling companies to use space more efficiently.
Tech Companies on the Move
Featured Tech-Friendly Space
The Alexandria Center
430 East 29th Street
New York City
- Brand new virtually column free construction totaling 1.1 m RSF
- One of a kind,
4.5 acre, hi-tech campus with unmatched amenities
- 14’ ceilings
- Available spaces ranging in size from
15,000 – 540,000 RSF
- Shuttle buses available to major transportation hubs
Want to see where your competition is moving? Click on a marker for tenant details.
About Cushman & Wakefield’s NYC Technology Group
The technology industry is dynamic and constantly evolving – therefore, the real estate requirements surrounding this sector must also be flexible. The professionals in Cushman & Wakefield’s NYC Technology Group share a deep understanding of the unique needs of technology firms, and will work with you to provide strategies and direction that align with your business objectives. Partnering with our team can help you achieve your real estate goals today, while anticipating the growth your firm may need for the future.
About Cushman & Wakefield
Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facility services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), project & development services, tenant representation and valuation & advisory.
RON LO RUSSO
President, New York Tri-State Region
Senior Managing Director
Feature Article Contributor
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