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WHO WE'RE HANGIN' WITH TOMORROW

Bruce Mosler (with Tishman Construction chairman and AECOM Technology vice chair Dan Tishman and Fried Frank real estate chairman Jonathan Mechanic) tells us tech firms have done for Midtown South what financial services did for Midtown long ago: Separate it out into its own submarket. Bruce says Midtown South's 65M SF makes it the fifth largest office submarket in the country, and for the first time, rents are moving up independently of Midtown proper. Spillover will go Downtown, he says and maybe to Brooklyn, plus the Far West Side—all neighborhoods that can offer the high ceilings and large floorplates these tenants want. Bruce and Arent Fox partner Jackie Weiss (more with her below) are both speaking atBisnow's Silicon Alley/Tech Real Estate Summit tomorrow at 450 W 33rd St. Sign up here to here to hear more from them and see who else will be there.
Jackie tells us Midtown South has seceded from what was the union known as Midtown. Its older buildings (with big ceilings and yawning floorplates) and cheap rents attracted the tech firms that wanted something a little different from the traditional office configuration. The deal heard 'round the city was Google's lease at 111 Eighth Avenue, she says, not to mention the rumble when the tech king bought it. The building stock may be where it started, but the desire among tech companies to be near like kinds, not only as a recruiting asset but also for poaching purposes, launched a submarket. Now, an address there also adds credibility as tech startups seek capital. As rents start to creep up, Jackie wonders, what's the next frontier? Dumbo's getting a lot of the tiny tech firms. Or will the techies inch north, or leapfrog NYU to Downtown?

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