Tech start-ups still flocking to Union Square

New York /
Aug.August 25, 2011 09:01 AM

With the recent arrival of Apple and the impending addition of Yelp in September spurring desire for the area, start-up technology firms continue to set up shop all over Union Square, the Wall Street Journal reported, despite rents in the area remaining significantly higher than in the Financial District.

Almost a dozen technology firms signed leases this year for a combined 135,000 square feet of office space in Union Square, according to the Union Square Partnership.

The average asking rent in the Financial District is currently $39 per square foot compared to $46 per square foot for Union Square, according to CBRE Research, but that doesn’t seem to matter much to the firms.

“It was such a morale drain,” Joe Essenfeld, CEO of JIBE, a service that helps match people with jobs through Facebook and Linkedin, said of working in the Financial District.

Companies are drawn to the easy subway and PATH train access at Union Square as well as buildings with open loft-style spaces, said Michael Kaufman, a broker with the Kaufman Organization.

“It has more of a creative vibe — the high ceilings,” Kaufman said.

Venture capital firm Union Square Ventures may also have had a role in putting Union Square on the technology map. The firm moved to the area in 2003. [WSJ]


Related Articles

arrow_forward_ios
From left: Vornado Realty Trust’s 11 Penn Plaza and Apple’s Tim Cook, The Farley Post Office building and Facebook’s Mark Zuckerberg, Durst Organization’s One Five One and ByteDance CEO Zhang Yiming (Getty, VNO, SOM, Durst)
Big Tech firms led office leasing in 2020
Big Tech firms led office leasing in 2020
Union Square Park to gain 2 acres in $100M plan (Getty_
Union Square Park to gain 2 acres in $100M plan
Union Square Park to gain 2 acres in $100M plan
From left: 1 Park Avenue, 55 Water Street, 250 Broadway (Photos via Wikipedia, Google Maps, Eastern Consolidated)
Manhattan office availability hits record high
Manhattan office availability hits record high
11 Penn Plaza (Vornado Realty Trust)
Manhattan office availability continues to reach new highs
Manhattan office availability continues to reach new highs
Rana Creek Ranch (Credit: Hall & Hall)
Lesser-known Apple co-founder re-lists 14,000-acre California ranch
Lesser-known Apple co-founder re-lists 14,000-acre California ranch
ICSC President Tom McGee (Credit: ICSC via YouTube)
ICSC requests federal help amid massive shutdowns
ICSC requests federal help amid massive shutdowns
An Apple store at  767 5th Avenue (Credit: Wikipedia)
Apple closes most stores in effort to curb virus spread
Apple closes most stores in effort to curb virus spread
Clockwise from top left: 66-26 Metropolitan Avenue, 11 Penn Plaza and 181 Livingston Street (Credit: Google Maps, 181 Livingston via Tishman Speyer) 
Tech inked big office leases in February, but not the biggest
Tech inked big office leases in February, but not the biggest
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...