According to a new report, the New York City job market is getting a boost from the technology sector. The report, “Building a Digital City: The Growth and Impact of New York’s Tech/Information Sector,” takes an in-depth look at the growth of the city’s technology sector.
Since 2007, there has been 11 percent growth resulting in 262,000 jobs in the tech/information sector. From 2007 to 2012, there were 26,000 jobs added, resulting in $5.8 billion in jobs to the city’s economy. Since 2007, private-sector growth grew 4 percent. During the same period in other industries, private-sector payroll fell 3 percent.
“The ability to socialize and collaborate is one of the founding blocks of creating a tech community,” writes Ashkán Zandieh, director of the creative and start-up advisory division at ABS Partners Real Estate, in the latest edition of his quarter TechStarter report. Mr. Zandieh has been involved with the technology sector for seven years. He created and sold a start-up, has advised several fledgling companies and tracked the field’s real estate activity for the past year. From ABS Partner’s Union Square area office, Mr. Zandieh is well-positioned to observe and dissect the red hot Midtown South tech real estate market and, if he looks south, the growth of the Financial District as a tech and new media contender.
Mr Zandieh spoke by phone with The Commercial Observer.
The Commercial Observer: How is the tech-fueled Midtown South commercial real estate market holding up?
Mr. Zandieh: The average asking rental price per square foot increased from an estimated $38 per-square-foot in 2011 and 2012 to nearly $60 per square foot for Class B buildings in Midtown South in the first quarter of 2013. What’s pretty interesting is that we’re seeing a Class B transition–there’s a fuzzy line between Class B and Class C.
So young companies are still drawn to, and able to afford, the neighborhood?
A lot of the start-ups I’m working with now are down in Soho and expanding by 20 or 30 employees. They’re moving out of Soho and to NoMad, where they can get larger floor plates. By NoMad, I mean 23rd Street to 28th Street between Park and Seventh Avenues.
The Year in Review
This past February, 10Gen, developer of the computer system database MongoDB, was in search of new office space, specifically in tech- and media-rich Midtown South.
The company needed a large open layout for its workers, with an option for more space to allow the firm to grow—plus an option to terminate. Unfortunately, the ultra-tight market Read More
San Francisco-based Yammer will be opening a 13,500-square-foot office in New York’s tech hub.
The tech firm has signed a five-year lease for Atlas Capital Group’s 218 West 18th Street. The building is around the corner from Google-owned 111 Eighth Avenue, the building that prompted a wave of office openings for tech companies in the neighborhood.
“This was in Read More
Our colleague Nitasha Tiku over at BetaBeat has a rundown on where, exactly, the city might place Mayor Bloomberg’s ballyhooed tech campus. Turns out Roosevelt Island wants it badly and is flexing some political muscle to get it:
Apple’s plans to bring the world’s largest iStore to Grand Central always seemed to defy laws of taste, landmarks preservation and possibly even physics.
Apparently, Apple has reached the same conclusion, because an anonymous source close to the M.T.A. has confirmed that the company has backed out of plans to bring computers to commuters Read More
A Little Bird Told Us
Twitter, the Web’s main repository of personal oversharing, political dissent and tasteless self-promotion, is donning a suit and tie.
The little blue bird has been perching in a spartan temporary New York City space since September, searching for the perfect spot for its first New York City headquarters. Now The Observer has learned that Read More