We recently reported on New York’s technology revolution, and how that revolution has impacted New York commercial real estate. In our blog post, NYC’s Silicon Alley Expands: New York’s Tech Revolution, we explained that lower Manhattan is getting involved in the digital arena, boasting approximately 600 tech firms south of Canal Street where the financial sector has historically dominated. This area has been named Silicon Alley. We also have a new contender in the New York technology revolution: Brooklyn.
The Brooklyn Tech Triangle has been dubbed the “next Silicon Valley” by Archinect. The plan is to develop parts of Brooklyn, led by the Downtown Brooklyn Partnership, the DUMBO Improvement District, and the Brooklyn Navy Yard Development Coalition. A number of firms have already declared Downtown Brooklyn, DUMBO and the Navy Yards their home, including HUGE, Etsy, Pontiflex, Loosecubes, MarkerBot, Steiner Studios, and a number of educational institutions. A map of the Triangle can be seen here, which reveals that over 500 companies and 12 universities are in Brooklyn. The map also provides a number of amenities and community assets already in place, from meet-ups to cultural offerings.
Based upon an economic study conducted by Urbanomics, the Brooklyn Triangle pumps approximately $3 billion into the local economy and will almost double in size by 2015. The study also shows that the square footage of space from 2012 to 2015 will grow from 1.7 million square feet to 3.1 million and the number of employees from 9,628 to 17,960. As such, there will be 20,000 more jobs available in 2015 (from 23,000 to 43,000). Of course, based upon this anticipated demand, rent is expected to increase approximately 67%, evidencing staggering real estate growth. There are already a number of developments in these areas; commercial real estate space can be found here.
The question remains, however, how will Brooklyn Triangle compete with its counterpart across the river, Silicon Alley. Mike Germano from Carrot Creative made a bold statement about the digital industry in New York: “Silicon Alley is dead.” But, with rising real estate costs in Brooklyn, it is only a matter of time before Silicon Alley’s outter-borough counterpart is just as expensive as Manhattan. And with companies like weWork and Greenspaces providing affordable, trendy, and fun work spaces in Manhattan, Brooklyn will surely have to step up its game. Nonetheless, these are exciting times in our city, and the change in personality and industry is surely something that will be a positive for New York; no matter the borough.
Queens, it’s your turn to step up your game.