NYC luxury real estate has always held a certain allure for companies looking to add prestige and status to their business cards. This is especially true for many tech companies that want to have the glitz to attract young, innovative talent, and investment banks willing to place large bets on the next “Angry Birds” app. The influx of these tech companies is changing both the commercial and residential real estate markets in four profound ways according to a recent article in the Huffington Post.
The first impact the tech companies have made in the New York real estate market is to drive up demand and reducing the supply of available space. With this combination, prices have skyrocketed to historic levels. Construction capital has tripled in the past two years as evidenced by Series B financing rising from $6 billion in 2013 to $17 billion this year in an attempt to keep up with demand.
Tech companies have the reputation for an edgy, quirky, open office space design. Plus, many companies have recognized that the office space should reflect the company’s culture. The demand for space fitting the need for exposed brick, polished concrete floors, loft spaces, and rooftop access has caused landlords to do extensive modifications to provide the open industrial look and feel that tech companies want.
Another impact tech companies are having is the transformation of the cityscape in older neighborhoods. The garment district was once filled with clothing manufacturers and fashion houses. Once tech companies found the rents to be a relative value compared to other areas and moved in, the landscape was changed into one filled with new restaurants, bars, and retail stores that cater to the tech employees.
The growth of the tech industry in New York has created an influx of new residents that has also driven up demand for residential housing. While a few can afford and chose to live in the city, many have flocked to outlying towns such as Long Island City and Astoria. A recent poll revealed that the number of residents with college degrees has grown by 40% in just the past seven years. These new residents increase the demand for foodservice, retail, and service oriented businesses in their new neighborhoods.
One company assisting tech company employees find suitable living space is Town Residential. The company specializes in luxury residential sales and leasing. Founded in 2010, Town has already been named as one of the Best Firm to Work For and one of the Top 50 Best Places to Work in New York City.
Working at all price points, the company handcrafts a marketing plan for each of its client properties. Sales and leasing are expertly managed. A detailed market analysis is done to ensure a maximum rate of return on investments. In the design phase, Town offers ahead of the trend unit floorplans and incorporates amenities that attract tech employees.