The Real Deal New York

Tech firms double Lower Manhattan office space

January 06, 2014 06:05PM

From left: 195 Broadway, One World Trade Center

From left: 195 Broadway, 1 World Trade Center

New York City’s technology firms are moving to Lower Manhattan in favor of cheaper rents and other perks, according to data from brokerage Jones Lang LaSalle that shows the office space they leased doubled in 2013.

In total, tech companies leased about 234,000 square feet of Downtown space last year, up from about 93,000 square feet in 2012, according to the data.

Among those relocating, so-called “creative” companies, like Conde Nast (1 World Trade Center) and Harper Collins (195 Broadway), stand out — more of them have moved Downtown than any other industry, according to Crain’s.

“These creative companies and tech companies are working together more and more and they employ the same talent pool,” said Sean Black, a JLL broker who compiled the data in their report. “You’re seeing companies go downtown because that’s where the talent is that they want to hire.”

Tech tenants are specifically looking for a far-from-corporate atmosphere, as The Real Deal reported, and smooth public transportation. Downtown Brooklyn, another neighborhood that fits the bill, tried enticing tech firms to set up shop by repurposing space for them last summer.  [Crain’s] – Angela Hunt

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