The Technology, Advertising, Media and Information business, jointly known as TAMI renters, are increasingly taking control of the office leasing market as these small breeding companies become Amazonian-like beasts.
According to Cushman & Wakefield, over 100 TAMIs are now looking for some 4 million square feet of space. While the majority are concentrating on offices of 10,000 feet to 100,000 feet, seven of those hundred are looking for over 100,000 feet, and a few are likewise brand-new to New York City.The sheer variety of feet being rented each year by TAMIs is likewise leaping as they grow both in number and in size. From 2011 to 2014, TAMI leases of 10,000 feet and up averaged a total of 4.8 million feet each year.
In 2014, TAMI occupants signed 5.1 million square feet, stated Jamie Katcher, senior director of Cushman & Wakefield.In the very first 4 months of 2016, TAMIs have actually currently signed 1.8 million square feet, Katcher says, putting them on course for a 6 million-square-foot year.
These offers consist of Facebook s at 225 Park Ave. South and its expansion at 770 Broadway, adding up to an additional 240,000 square feet.There are more stats that are indicative of the TAMI influence. From 2011 to 2014, the average taking leas for TAMI tenants was simply under $50 a foot; by 2015, it was $59.33. In the face of a rising demand for offices, from January to April of this year that number jumped to $64.89 a foot.
Furthermore, TAMI renters are pushing the boundaries from their desired Midtown South location to both downtown as well as parts of Midtown think Yahoo at 229 W. 43 St.It seems to be the more entrepreneurial business and minds that are gravitating to the Midtown South area, rather than financial services, observes John Goodkind, director of leasing with Koeppel Rosen.
There is also real demand from the 5,000-square-foot to 6,000-square-foot user, Goodkind notes. If I had more floors at 45 E. 20th St., I could lease them.While the majority of TAMIs still want to stay in Manhattan, Katcher says, the lack of larger blocks is leading them to push boundaries.Since 2013, Katcher states 173 TAMI tenants, or 22 percent of the total, have rented north of 42nd Street, while a whopping 637 TAMI occupants, relating to 78 percent, have actually moved south on the island.
As the TAMIs have the tendency to flock together, some are exploring emerging opportunities in Brooklyn and Queens along with New Jersey, states Mitchell Arkin, executive director of Cushman & Wakefield.Business moving from Manhattan are eligible for the REAP (Relocation and Employment Assistance Program), a tax credit Arkin says is an essential tool to lower services occupancy costs.Although this program has been renewed every two years, it does end once again in June 2017. It makes a distinction [for the occupants] although rents are less than in parts of Manhattan, Arkin says.
New Jersey s expense savings goes beyond the advantage of the REAP, Arkin says some companies still worry about customers or staff members getting to Jersey.That is opening the path to prefer places in both Brooklyn and Queens. With more information and numerous freshly offered properties, Arkin says most tenants now focus on one area.Which one depends on where employees and company heads are based, he discusses, along with if they have to have distance to customers or a particular transportation center.
Links along subway or PATH lines can become the secret to decisions. When Time Inc. rented space at Industry City in Brooklyn for its digital department, Arkin says subway availability to Brookfield Place, where the rest of the company was moving, made a big distinction.Now that MetLife is combining at 200 Park Ave., it will be subleasing 200,000 square feet at the Brause Realty owned 27-01 Queens Plaza North structure in Long Island City through Cushman & Wakefield.
A few blocks far from Queens Plaza, near the N and Q trains, Alma Realty owns 30-30 Northern Blvd. This is being renamed the Apple Building for its old water tower that had been painted with a Big Apple.
Two stories are being included, and the water tower will become lobby art work. Arkin and Joe Grotto of C&W will handle leasing.Another former storage facility at 30-02 48th Ave. in Queens is being rearranged into loft offices called the Bindery by owners Bruce Brickman and Daniel Loeb s Third Point.This month, Brickman and Daren Hornig bought The Box Factory at 1519 Decatur St. for $10 million.
Located in yet another brand-new mini-neighborhood dubbed Ridgewick for its location on the border of Ridgewood, Queens, and Bushwick, Brooklyn -the partners will redevelop the two-story building with over 100 windows and target artists and makers with lower leas in the $30s per foot.I enjoy working the boroughs, states Arkin. They are so vibrant and interesting. We are producing neighborhoods, and the renters love it.