At Bisnow’s NY Office of the Future Event, panel speakers
shed light on the driving factors luring major tech/creative companies into NYC,
and the steps CRE developers and owners are taking to ensure these companies
stay long-term. These are some of the nuggets of information shared:
Location
- Michael Cohen, President at Colliers International, sees
downtown as the midtown south of the 21st century which is poised for resurgence.
- Pressure in lease pricing for midtown south will force tech companies
downtown as midtown south prices out many tenants.
- Midtown will also see tech tenants moving into the neighborhood
- Richard Bernstein, EVP at Cassidy Turley sees companies
reducing excess
- Tommy Craig, Senior Managing Director of Hines now sees jobs
following people
- Google focuses on sustainability not because of cost savings
but, more importantly, it benefits their employees
- Employees at Google find food culture very important and
amenities at their office space.
- Google’s Real Estate Project Executive, Adam Lutz, notes
that many companies want to adopt Google's office culture/set up but struggle
with the idea of change.
- Google recommends starting with small changes to office
layout and culture to gain motion.
The Evolving Office
- David Falk, President of Newmark Grubb Knight Frank, sees
companies looking for space that defines their culture.
- Michael Cohen sees companies which are inclined to use a
bullpen shifting to a tech office layout
- Many companies want offices that run 24/7, however many
buildings are not fitted to accommodate.
- Higher densities require companies to reconsider life safety
/ evacuation standards
- Eric Hadar, Chairman of Allied Partners sees his focus
shifting to buildings that he didn't consider in the past because there are now
tenants to make them work.
- Falk feels that certain buildings cannot be
repositioned for tech tenants.
- “To be successful in market you need to be at the leading edge
of innovation” – Tommy Craig
- Hadar feels that if you commit to tech/media tenants
you need to go all out.
Co-Working Spaces
- Paul Pariser, Co-CEO of Taconic Investment Partners says co-working
spaces, such as WeWork, are a game changer.
- Co-working spaces are thriving and taking more and more
space in NYC and across the country
- It’s a concept that makes sense for startups that can't
commit to a long term lease and find benefit from collaboration
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