Developers scramble to reinvent office spaces for booming NYC market
October 20, 2014

The explosive growth of the tech, advertising, media and information (TAMI) sectors has floated all leasing boats. Brokers say there is almost no “bad” office area, with tenants happy to be off the Midtown grid in search of cheap and funky collaborative spaces.

Since tenants want to be in trendy neighborhoods, it’s prompting developers to buy, reinvest and reinvent buildings citywide — including in Harlem, Brooklyn and Queens — said Bruce Mosler, head of global brokerage for Cushman & Wakefield.

In Harlem, three acres around the former Taystee factory in the West 120s is seeing TAMI tenants as well as biotechs affiliated or spun off from Columbia University and other colleges, said Scott Metzner, president of Janus Property Company.

Deals like Etsy’s 200,000 square feet at the Kushner/RFR Holdings’ DUMBO Heights portfolio is egging other buyers onward.

“Brooklyn is definitely underserved in the office market,” said Stephen Shapiro, senior vice president, JLL. “Kushner’s DUMBO buildings are a welcome addition but a drop in the bucket to satisfy the demand...”

Also in LIC, Time Equities is preparing the industrial building at 47-37 Austell Place for tech tenants.

Back in Manhattan, Dan Posy, senior managing director at Savills Studley, says the high-end market is extremely hot right now. “It is not necessarily a space race, but there not as many opportunities as there could be for tenants.”

Developers scramble to reinvent office spaces for booming NYC market

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