How Betting Big on The Big Apple Paid Off
In the midst of the pandemic, when doomsday scenarios were being predicted for Manhattan and residents were fleeing to the Hudson Valley and elsewhere, big tech — Facebook, Google, Amazon and Apple — were, to the surprise of many, doubling down on a city in turmoil. They increased their commercial real estate footprint in some of Manhattan’s most iconic buildings (particularly in Hudson Yards and Chelsea) as well as the Bronx, Brooklyn and Queens. By betting big on office workers coming back to their desks and life returning to normal, albeit with a few modifications, they signaled to skeptics that they believed wholeheartedly in New York and its future. Judging by the recent surge in home sales (over 600 contracts had been signed from June 1st to 11th) and prices, they weren’t wrong.
Commenting in the New York Times last year, after a spate of acquisitions, Amazon’s vice president of workforce development, Ardine Williams said, “We know that talent attracts talent, and we believe that the creative energy of cities like New York will continue to attract diverse professionals from around the world.”
Why NYC Works for Big Tech
Silicon Valley’s spending spree in the Big Apple is a mutually beneficial arrangement. Tech companies need the smartest minds in the world, which are generally found in major cities and any city that wishes to be seen as growing and progressive needs tech as part of its business portfolio. It’s no surprise that top tech cities in the US such as Austin, Pittsburgh, Boston, Chicago, Colorado, LA, and Seattle plan to give Silicon Valley and San Francisco a run for its money. New York, of course, is leading the pack.
With tens of thousands of employees expected to return to their desks, the boon for local businesses such as restaurants, entertainment venues, and of course, real estate can’t be ignored. According to a data from the New York State Comptroller’s office, tech jobs in NYC have increased 80% over the last decade, a trend which is set to continue.
High Paying Jobs Means High Priced Sales
Tech jobs are synonymous with high salaries, well over 6 figures for new grads is customary. The effect on the surrounding real estate market is bound to be significant, with the new 7 train line to Hudson Yards, able to shuttle residents in from trendy Long Island City, while Chelsea and Hudson Yards, appeals to employees who like the idea of walking to work. Downtown Manhattan has always appealed to tech progressives and expect that to continue, especially with Google and Instagram both in the vicinity. Tech’s expansion into Brooklyn (Dumbo, Williamsburg, Bushwick, Industry City) and the ease of transportation into the city is also likely to see emerging neighborhoods such as Crown Heights, Bed-Stuy and Bushwick continue their ascendency.
Start-Ups Get Started In NYC
It’s not just big tech that will bring jobs to New York. A recent article in crunchbase.com revealed that start-ups have pulled in $76 billion in seed money through late-stage venture funding, with a record year on the cards. The article states that at least 25 New York headquartered companies have raised $100 million and up while five NYC based companies secured $300 million or more so far this year.
New York has always welcomed diversity, both in its population and businesses, proudly being a leader in any global industry. Its tech revolution was only a matter of time.