The Tech Start-Up Boom in Midtown South
It recent years, technology start-ups have leased hundreds of thousands of square feet of vacant New York City office and loft space. These social media, web design, online gaming and Internet marketers have a strong preference for Chelsea, The Flatiron District, Madison Square and globally Midtown South. Now being well established, they have changed the identity of these neighborhoods, giving them a young and energetic vibe.
Strong Preference for Industrial Loft Space
Style being a key factor when they select a space, tech companies especially value former industrial buildings, properties which offer very desirable features: open ceilings, brick walls, large windows with an abundance of natural light as well as concrete or wood floors. These industrial chic spaces are conducive to the collaborative work environment that fits with the creative team members accustomed to working together in an informal but well structured environment.
The spatial needs of these tech businesses are specific. They typically include a reception area, conference rooms, open space for cubicles or private offices for staff, possibly a media room and dedicated server room. And of course a kitchenette and small dining area. Not to mention that the space has to offer plenty of well-located electrical outlets and access to high-speed Internet. The speed, capacity and cost of connectivity offered by a landlord in their building is no small matter.
Metro Manhattan has encountered key issues when negotiating office and loft leases on behalf of technology firms.
Keeping your Security Deposit to a Minimum
While many of these firms have strong balance sheets, young companies and start-ups often have not yet achieved profitability. In these circumstances, negotiating the minimum security deposit is a real challenge.
Planning for Expansion
Some of these tech firms take off quickly. They can quickly hire staff, outgrow their offices and quickly require expansion space. So it is essential, if possible, to negotiate an expansion option in the lease: that allows for a move to larger offices within the building. But since landlords do not always agree to an expansion option, the sublease clause in the lease is critical: it allows you to dispose of your space and move elsewhere.
A New Wave of Tech Firms On The Way
As we all know, Google (111 Eighth Avenue), Facebook (770 Broadway) and Twitter (249 W. 17th St) are tech industry icons that all have office space in Midtown South. Their presence has attracted hundreds of start-ups to the area.
Now innovative industries such as virtual currency (Bitcoin), bio-technology and 3D printing are spawning a 2nd wave of start-ups. And these revolutionary firms, which will change the face of the world, are competing to lease the best New York City office rentals.
When Should You Call Metro Manhattan Office Space?
Typically, technology start-ups rent their first space in an executive office suites. Since these shared environments offer very short leases, you don’t need to commit for more than a few months. Additionally and they are cost effective for a staff that does not exceed three individuals.
Once your company employs more personnel you are going to save money by renting space directly from a landlord. At that point give a call at (212) 444-2241.
Lease a Hip Industrial Space for Your Tech Start-Up
Metro Manhattan Office Space has extensive experience negotiating leases on behalf of Internet marketing, computer programming, social media and other technology firms. We have represented established companies as well as start-ups. Contact us here to learn more about the hippest office and loft space in Chelsea, The Flatiron District, Union Square and NoMad.