The recent boom in tech industries affects the economic environment of many cities around the world. In New York City, this boom reverberates to the city’s real estate industry.
The tech industry boom has resulted in increased income for tech companies. This economic empowerment is spent on the city’s real estate market. CB Insights reports a significant increase in income earned by tech companies in 2014, with Series B financing up to $17 million from $6 million the previous year. Tech startups and companies have driven up demand for the city’s real estate market. Incredibly, in 2014 the tech industry alone accounted for 19% of the leasing activity in the market. This increased purchasing power has seen tech companies apply for nearly half the total bids in posh areas like Flatiron, Union Square and Chelsea. The effect has been an 80 percent rent increase, a ten year all time high.
The NYC luxury real estate demand from tech companies has seen a significant change in office space and floor plans. These companies demand unconventional open office layout and office plans. This is because most startups need to attract youthful personnel and talent. This is the new tech company culture that, according to Crain’s, is the most significant issue for the HR departments to consider.
The city’s tech boom has affected traditional looks of many neighborhoods. This is so because an influx in tech companies results in fresh and new look and perspective in a neighborhood. This holds true for areas like the Garment district and Flatiron District. This influx has resulted in a boom of service businesses in the areas like restaurants, coffee shops, retail stores and bars.
The tech boom has seen a resultant boom in hot residential spots and estates. Most of the industry’s personnel usually move into cheaper neighborhoods. This change the area’s demographical make up and landscape. More often than not, these new look neighborhoods attract complimentary service businesses as is evident in Astoria and Long Island City.
Town residential is a leading New York real estate company. It caters for the sleek and posh luxury market. It mainly specializes with the sale, leasing and marketing of residential properties. The company was created by current CEO Andrew Heiberger and is co-chaired by Joseph Sitt.
The company’s top class personnel, awesome service delivery and quality properties have seen it grow into a respectable firm. Town Residential has won accolades like Best Firm to Work For and has made it to the city’s top 50 places to work in.