As rents drop, tech companies head downtown
More than 600 IT companies have moved below Chambers Street
With an increasing number of technology companies moving to The Area Below Chambers Street, the Downtown rental market seems to be flourishing. The main attraction for IT tenants? Cheaper rents.
More than 600 tech companies, both established names and start ups, have moved Downtown, a 24 percent jump from a year ago when 500 tech companies were located in the area, according to Real Estate Weekly.
To some degree, that increase can be attributed to falling rental prices in the area. Between April and May, the average asking rent fell from $50.99 to $48.53, according to a report in the June issue of The Real Deal. The Durst Organization, for one, has been slashing rents at One World Trade Center in a bid to attract tenants to the building. Currently, only 55% of available space in the tower is leased.
The total square footage of tech companies leasing in lower Manhattan grew 53 percent from 2011 to 2012, from 180,000 to 274,800-square-feet.[Real Estate Weekly] — Claire Moses