Tech Tenants Are Impacting Office Space Far Beyond Silicon Valley
While S.F. still sees the most tech activity, office markets like Boston and NYC are seeing big impacts from the tech crowd, Colliers International president of national office services Cynthia Foster tells GlobeSt.
“The largest number of IPOs in this country last year for tech companies was in Boston,” Cynthia says, adding that tech broke 10% of NYC’s total leasing in 2014. Manhattan has seen a 760% increase in tech leasing from 2009 to 2014, hitting 3.99M SF in 2014.
Tech firms rent differently than more traditional tenants, renting out smaller spaces—56% of all NYC tech leases signed from 2003 to 2015 were between 5k SF and 15k SF.
The new types of tenants have affected traditional space as well—NYC law offices and financial companies are putting modern creative space in-office, similar to tech firms, to attract the best young talent.
“Millennials are going to represent half of the workforce and are all about the workplace of the future,” says Foster, noting that these young workers like office spaces that provide a mix of collaborative space and private working areas. [GS]