Fintech firms are gobbling up Manhattan office space

Leasing activity’s nearly tripled since 2014

TRD New York /
Mar.March 05, 2018 08:01 AM

Jeff Bezos with 5 Manhattan West and David Levinson with 150 Fifth Avenue

Big financial firms, banks and tech startups are driving demand for financial technology office space.

Fintech firms and units of larger companies accounted for roughly 877,000 square feet of Manhattan office leasing last year, according to JLL data reported by the Wall Street Journal. That’s almost triple the sector’s total for 2014.

Mature firms like Alphabet’s Google, Facebook and Amazon are growing larger in the city, and so are outposts of Silicon Valley-based companies.

“They are tapping into the acumen of the financial services sector here and the acumen we have built around the technology sector,” said JLL director of research Sean Coghlan.

Mastercard, for example, signed a lease last year for all 212,500 square feet at L&L Holding’s 150 Fifth Avenue, almost tripling the size of its current Midtown South technology hub at L&L’s 114 Fifth Avenue.

“With fintech, it’s the tech part of that that is affecting everybody and everything,” said L&L’s David Levinson. “Everybody is trying to figure out how to get ahead of this so they don’t get blindsided by something that a competitor is doing.”

Venture capital funding for fintech firms has roughly doubled from 2014 to $2.2 billion in 2017, according to PricewaterhouseCoopers.

And the city is increasingly becoming a destination for the young workers these firms want to hire. An estimated 36.4 percent of Manhattan’s population is millennials, compared to 28.5 percent nationwide, according to Cushman & Wakefield. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
Eric Gordon

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

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

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?

What will proptech look like in 2019 and beyond?
Jeff Bezos (Getty, iStock)

“We are erring on the side of having too much capacity”: Amazon reports massive Q3

“We are erring on the side of having too much capacity”: Amazon reports massive Q3
Bob Sulentic (Getty, iStock)

CBRE income falls nearly 10%

CBRE income falls nearly 10%
From left: Paramount CEO Albert Behler, 1301 6th Avenue, 712 5th Avenue, 31 West 52nd Street (Getty; Google Maps)

Paramount Group back at work, but tenants waiting until 2021

Paramount Group back at work, but tenants waiting until 2021
Tony Malkin (Getty, iStock)

Empire State Realty Trust reports second consecutive quarterly loss

Empire State Realty Trust reports second consecutive quarterly loss
Michael Shvo and the Transamerica Building in San Francisco and  (Unsplash)

Shvo, Deutsche Finance close on Transamerica Pyramid for $650M

Shvo, Deutsche Finance close on Transamerica Pyramid for $650M
arrow_forward_ios

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

Loading...