Lately, it seems TAMI tenants, firms in the technology, advertising, media and information sectors, are descending on the Brooklyn market in droves. They’ve become a key driving force in office leasing in New York City, and now they’re targeting Brooklyn office space en masse.
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With limited inventory and this nascent demand from TAMI tenants, the going rates for Class-A office space in the outer boroughs are approaching those sky-high Manhattan rents. That’s why Norm Brodsky, owner of the 11-acre Citistorage site that completes Bushwick Inlet Park, believes his property is worth more than triple the $100M offer from Mayor Bill de Blasio and the City of New York.
Recently, CPEX Real Estate’s Office Sales & Leasing Team placed two TAMI tenants in the Gowanus, the latest example in a trend of TAMI tenants claiming converted warehouse space in former industrial areas.
“We have been targeting TAMI tenants, co-working spaces, and media, production, engineering and architecture firms during the marketing process for these Gowanus flex office spaces,” said Associate Director of CPEX’s Office Sales & Leasing Team Richard Novak.
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So what is it, exactly, that makes these types of areas and converted warehouse spaces so attractive to the TAMI tenants flocking to them?
1) Employee base is already in place
Neighborhoods like the Gowanus are flush with young creatives looking to join startup endeavors in TAMI industries. By locating their offices in the same area as their employee base—fulfilling Brooklyn’s live/work/play mantra—these companies are making their employment opportunities and work culture that much more appealing and enticing and retaining talent.
2) Ease of access
In the event employees are coming from other areas of the city, the Gowanus offers an array of easy transportation options. The same transit factor that attracts new residents is simultaneously drawing in new businesses.
3) Lack of true office inventory
Remember the aforementioned lack of true Class-A office space in Brooklyn and the other outer boroughs? Areas outside of traditional office markets, like Downtown Brooklyn (where vacancy rates are already among the lowest in the country) boast spaces ripe for office conversion, significantly expanding the pool of potential options.
4) The warehouse is your oyster
Creative companies like creative spaces that fit and reflect their brands and cultures. What better space than a former warehouse, repurposed to reverberate with the company’s energy? The unique features, which generally include high ceilings and a large floor plate, offer tenants the flexibility to create the optimal office space tailored to their needs, wants and whims.
To learn more about TAMI tenant trends, the Brooklyn office market, or CPEX, click here.
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