Tech Monthly
New York City . February 2014
Tech leasing activity
January 2014 13 transactions 663,276 s.f.
Venture capital funding
January 2013 33 transactions $222.5 million
Tech employment
December2013 2,600 jobs YoY +4.4% YoY
Companies hiring
February 2014 1,490 companies +4.9% MoM
% change from December 2007
• New York City’s tech sector continued to expand at a robust rate, with a 4.4 percent payroll increase in December over the same period in 2012. Apart from the education and health sectors, this growth represented the largest industry increase year-over-year. Notably, the tech sector experienced consistent growth each month in 2013. High tech firms increased hiring with a 4.9 percent increase in January over December. • Venture capital funding remained strong in January, as a total of 33 transactions worth more than $220 million closed during the month. January was the eighth straight month in which more than $200 million of venture capital funds were raised. Aereo, a web-based television streaming company, closed the largest round in January, raising $37.0 million in Series C funding. Livelntent, an advertising start-up, raised $20.0 million in Series C funding as well. • Tech leasing activity was strong in January with 13 leases signed—just one less than the dominant financial services industry. The sector generated 663,276 square feet of total activity and set the bar high for the remainder of the year. With tech hiring remaining vibrant, expect to see a large number of tech leases close over the next several months. • Twitter signed the largest tech lease in January: a 144,000-square-foot transaction at 245 and 249 West 17th Street, while IBM signed an 118,425square-foot lease at 51 Astor Place where it plans to locate its IBM Watson Group. IBM also signed the largest tech renewal during the month: 112,500 square feet at 590 Madison Avenue. MasterCard signed a 57,978 square-footlease at the newly renovated 114 Fifth Avenue where it plans on opening a technology lab. • Midtown South saw the largest share of tech leasing for the third consecutive month at 75 percent of New York City’s activity. Midtown was second with 25 percent, while no tech leasing activity occurred Downtown during the month. Technology leases represented 21 percent of all leases signed during the month of January, up 10.0 percent from the previous month.
Source: Jones Lang LaSalle Research, CrunchBase, Made In NY, New York State Department of Labor
Source: New York State Department of Labor, Jones Lang LaSalle Research
Venture capital companies funding more companies year-over-year
Cumulative $3,500 $3,000 In Millions $2,500 $2,000 $1,500 $1,000 $500 $0 Number of Deals 140 120 100 80 60 40 20 0 # of Companies funded
Source: CrunchBase, Jones Lang LaSalle Research
Something to watch: High-tech sector grows stronger in 2013
• The technology sector has become one of the fastest growing sectors in the New York City office market. From 2008 to 2013, total leasing volume of the tech sector expanded by more than 2000 percent. In 2013, the New York City tech sector beat its five-year average by more than 5 percent, and had the largest growth among the sectors. • From 2012 to 2013, tech employment increased by nearly 4.4 percent, while total non-farm payrolls for New York City expanded by only 2.4 percent.
Legal Services Government Insurance Manufacturing Leisure & Hospitality Accounting Firms Financial Services Business Services Real Estate Transportation & Utilities Retail/Wholesale Trade Apparel/Textile Nonprofit/Edu/Health High-tech
Source: Jones Lang LaSalle Research