REBNY Panel: Tech, Biotech Firms Flock to Silicon Alley

NEW YORK CITY-Tech has been one of the primary forces behind the Midtown South submarket's ascendancy into one of the industry's hot topics of conversation, said experts gathered for the latest in the Real Estate Board of New York's Commercial Crossfire panel discussions. “Until recently, New York didn't have a tech industry because of high prices, but now they're coming back and there's a big push to have more collaborative and efficient spaces available with flexible, month-to-month contracts,” said Mark Lapidus, director of real estate operations at WeWork.

Held this past Tuesday, the panel was organized by Christel Engel and James Caseley from REBNY's Commercial Board of Directors. The discussion was led by moderator Keith Turco, president of Gyro Advertising, and included: Lapidus of WeWork; Debra Larsen, founder and president of WorkHouse NYC; Jake Schwartz, CEO of General Assembly; Ryan Simonetti, co-founder and principal of Convene; and Jeff Sussman, EVP with Edward J. Minskoff Equities.

Sussman kicked off the discussion, identifying tech and biotech tenants as the main drivers of the Midtown South market. Along with creative companies, these young firms have flocked to the neighborhood, which Larsen noted provides the workspace, amenities and environment they seek.  

Spaces in the neighborhood are not uniform in design, and tenants are looking for the architectural features they tout—such as high ceilings, brick walls and wood floors—regardless of what industry they're in, explained Schwartz of General Assembly.  Lapidus mentioned that many corporate clients are even looking to put their staff in these collaborative spaces to encourage them to think outside the box and work outside of their normal comfort zone. 

Panelists also noted the return of services to the workplace as an accompanying factor to this trend of collaborative workspaces in Midtown South. “The workplace of today is service and tenants are looking for more flexible, collaborative spaces that are have easy access to food, amenities and tout the latest in technology,” explained Convene's Simonetti. His company provides on-site production, culinary, technology and experience design services, in addition to corporate event planning, conference space and group hotel management. 

To keep up the momentum in Midtown South, Sussman explained that landlords have to listen to what tenants are looking for and think about community, outdoor spaces and services. The panelists were unanimous in saying that the next area positioned for this kind of momentum is Brooklyn.