Tech firm space becoming scarce in Dumbo

Dec.December 20, 2011 09:52 AM
From left: 55 Washington Street, home to Etsy, 45 Main Street, home to Huge, Inc., and 20 Jay Street the site of NYU-Polytechnic’s incubator (building credits: PropertyShark)

For the last decade tech firms and digital advertising companies have launched and expanded in Dumbo, but according to the Wall Street Journal the growth has finally hit a roadblock as space is becoming scarce.

Though the area was initially “sketchy” when tech firms began to arrive in 1999, the cheap commercial rents and loft space appealed to startup firms. Now, more than 100 such companies are based in Dumbo and the industry employs the most workers in the neighborhood. The leaders are Etsy, which added 100 employees in 2011 to bring its total to 250, and Huge, which has 400 employees. Both expect to expand in 2012.

Further growth comes from NYU-Polytechnic, which is set to open an incubator to house about 20 companies at 20 Jay Street.

“We are starting to have to think about where to put [new tech firms],” Alexandria Sica of the Dumbo Business Improvement District said, pointing to the tightening real estate market in the area.

That problem plagues the incubator, which was able to secure just 7,000 square feet and as a result will focus on growing companies and moving them out quickly, according to the school’s president. [WSJ]

Related Articles

Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?

35 Jay Street and Edward Minskoff (Credit: Patrick McMullan/Patrick McMullan via Getty Images, Google Maps)

Edward J. Minskoff Equities buys Dumbo property for $62M

Lyric’s Andrew Kitchell and Joe Fraiman

Another bloodbath: Lyric to slash jobs, drop units

Sonder CEO Francis Davidson (Credit: Linkedin, iStock)

Hospitality startup Sonder slashes workforce

Cyril Berdugo and Tom Petit (Credit: Landis)

Proptech startup Landis inks deal to turn renters into buyers

A growing number of startups and agents are embracing video tours and virtual houses (Credit: iStock)

This weekend’s open house? You’ll have to tune in via livestream