As already limited office space inventory continues to shrink, attention is being shifted onto under served markets poised for growth. New York Senator Charles Schumer is one of many officials focused on improving the infrastructure in the Brooklyn Tech Triangle to attract additional tech companies like MakerBot, Etsy and Reddit to the area. [read more]
An overwhelming trend for tech companies is the desire to be located in close proximity to other start-ups and related companies. Many start-ups undervalue their real estate requirements as it relates to quickly growing companies, which can become an extremely expensive and prohibitive problem for many tenants. Whether or not real estate is a priority for start-ups, office space comes at a significant cost and should be taken very seriously as companies evaluate expansion. [read more]
Based on unpredictable growth of tech companies, shared office space is becoming an increasingly important factor in the commercial real estate industry. With flexible lease terms and month-to-month cancellation options, it can be very appealing for emerging companies to seek out temporary shared spaces. It is important though to evaluate all permanent and temporary space alternatives with a licensed real estate advisor who can illustrate the many pros and cons of signing each type of lease agreement. [read more]
In an interesting move to attract tenants to 335 Madison Avenue, the building's owner, Milstein Properties, is offering free incubator space to tech companies. The goal is to use Facebook's former space, which was built to high standards, to bring start-ups poised for growth into the building. This is an excellent opportunity for new companies to move into high-end space without the premium costs associated with similar properties. [read more]
Competition is heating up in the office sharing arena as tech companies continue to flock to facilities such as WeWork, Grind, General Assembly and many more. WeWork has expanded into over 10 locations in NYC, with additional locations to open in the coming months. As office availability for long-term space decreases, we expect the need for temporary space options to increase dramatically over the coming months and years. [read more]
Congratulations to marketing technology company IgnitionOne on their move to the MetLife Building. This transaction was a sublease from Barclays financial, illustrating the abundant opportunities that exist in Midtown as opposed to the trend we have been seeing of techies flocking to Midtown South. It is important to evaluate direct deals with landlords as well as subleases from existing tenants which may make economic sense for many companies. [read more]
The New York City office market must continue to adapt to the growing requirements of technology companies. Within a few years, Class B and Class C office space (typically sought out by tech companies) will be completely occupied, with a shortage of at least 6.3 million square feet by 2025. Finance, insurance and real estate sector companies accounted for 32% of the city's economy in 2012, down from 53% in 2002. During that same period, technology and media companies have jumped to 25%, from 9% a decade prior. [read more]
