Late last year, when the education publishing company Scholastic offered up about 60,000 square feet of sublease space at the top of the Soho office building 568 Broadway, the firm quickly found it wouldn’t be difficult to fill.
Within weeks, a host of tenants were competing for it, including several tech firms, one of the most active sectors of the leasing market in Manhattan right now. Tumblr, foursquare and AppNexus, all well-known names in the industry, moved to the front of the pack.
On the face of it, such a decision would seem easy. Of the three, only AppNexus, a firm that specializes in online advertising and is backed by the software giant Microsoft, is known to be profitable. But in a tech boom in which riches don’t always flow from the most likely sources, the deal for the space took a different turn.
The competition soon boiled down not to AppNexus but to Tumblr and foursquare, two companies that have become top brands in the new internet boom and have raised tens of millions of dollars in venture capital between them, but have yet to find income-producing platforms for their services.
If the Midtown South office market is hot, then Soho has been scorching.
The total vacancy rate for the third quarter of 2012 was just 3.1 percent, a 1.3 percentage point drop from last year, according to a quarterly report issued earlier this month by Cushman & Wakefield. With just 47 buildings and a little more than 4 million square feet of total inventory, available space added up to slightly more than 126,000 square feet, a decline of 27.8 percent from last year, analysts told The Commercial Observer.
“There’s just a lack of inventory across the board, which will just keep pushing rents north,” said Greg Taubin, executive managing director at Studley. He added that there is “continued demand from tech-related tenants seeking the look and feel of a collaborative environment.”
Casserole Labs is moving across the river to a new office in DUMBO.
The tech company is currently located at 568 Broadway but will relocate to 4,500 square foot office at 231 Front Street for the next five years.
“[There are] windows on three sides. Large, brick and timber high ceilings,” commented Christopher Havens, the Read More
Allied Partners has obtained a $200 million mortgage on the Prince Building at 568 Broadway, Eric Hadar, chairman of the company, confirmed to The Mortgage Observer. The crowd of companies such as Foursquare and ZocDoc, which have turned the building into one of the main centers of New York startup scene, will soon have a rooftop garden for their events, which will be paid for with part of the new loan.
Foursquare’s Soho offices are bright and open, with a large skylight in the center of the floor that allows sunshine to bathe down on a giant wooden replica of the teardrop-with-a-hole-punched-in-it logo that serves as the company’s locational icon. Look up a bar or a restaurant on Foursquare’s site and this is the tab you will see highlighting its suggestions.
Its prominence is a purposeful reminder of what the company wants to be—a location-based social network that people on the go will use to negotiate daily life—versus what initially brought it fame: a gimmicky online check-in service that has since been handily usurped by not one but two tech giants, Facebook and Twitter.
The tech world is a ruthless place, where battle happens both online and off.
ZocDoc has finally decided that two aspirin and a call to its broker in the morning is no longer enough to soothe its growing pains.
For months the tech company, which provides online scheduling services that connect doctors with patients, has been browsing for space in which to expand, shopping prominent vacancies in the Midtown South office market, including 620 Avenue of the Americas and 770 Broadway.
It’s Christmas day for Foursquare! Except in place of being visited by Ol’ St. Nick, the location-based social networking phenom was visited by a fast-working team of architects and builders, leaving them with their brand new office space at 568 Broadway.
And a federal holiday couldn’t keep Foursquare’s 80-plus team away from their new Read More
Location-based social network Foursquare will say goodbye to its longtime office mates at 36 Cooper Square. The startup, which raised a $50 million round of funding this summer, has vastly outgrown the 7,600 square feet at the East Village digs it shares with Curbed and web design shop Hard Candy Shell, and is negotiating a sublease for the top two floors at 568 Broadway.