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An Abundance Of Tech Talent Is Pushing NY Office Leasing

CBRE Tech Story

Silicon Valley may get the glory when it comes to digital startups, but a report released by CBRE shows the Big Apple is home to a surging East Coast tech sector.

New York maintained its top-five position on the 2016 Tech Talent Scorecard, which ranks 50 US and Canadian markets according to their ability to attract and grow tech talent.

This is great news for the NYC leasing market, as activity is increasing nationwide. In 2011, this sector accounted for 11% of office leasing across the country. In 2015, it reached 18%.

The report states that access to relevant education is a key factor to a market succeeding in this sector. It's certainly worked out for New York. Nearly 70% of the markets that made CBRE's list have an educational attainment rate above the US average (30%).

Although NYC was outranked only by Washington, DC, on the East Coast—and the Bay Area and Seattle nationwide—NYC was labeled as the top market in the nation when it comes to producing tech-related degrees. More than 15,000 tech students graduate each year within the five boroughs.

New York led the pack in terms of graduates, with nearly 63,456 grads entering the tech job pool between 2010 and 2014. The result is the creation of 64,831 jobs between 2011 and 2015. That number includes 1,375 jobs that were newly generated.

The significant increase in jobs has been accompanied by a substantial jump in New York asking rents. Between Q1 2011 and Q1 2016, CBRE has seen asking rents rise 46% to $75.35/SF.

It's seen availability rates in the city drop to 7.3% over the same time period.

Rankings for the Tech Talent Scorecard are determined based on 12 other unique metrics, including the presence of Millennials and the cost of living in a market. A denser population of Millennials and a higher cost of living each translated to stronger tech sectors. Not surprisingly, New York performed strongly in those categories as well.

To learn more about our Bisnow partner click here and to read the full report, click here.

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CBRE's mission is to realize the potential of its clients, professionals and partners by building the real estate solutions of the future. From instilling confidence in today’s decisions to re-imagining tomorrow’s spaces, the firm thrives in complex and ever-changing environments.

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