New York City and the surrounding areas are experiencing more growth than usual these days, largely fueled by the technology, advertising, media and information (TAMI) industries. For example, Amazon.com recently leased 470,000 square feet across from the Empire State Building. Homemade goods provider Etsy drew up plans for a 200,000-square-foot space in Dumbo. And Google leased a 180,000-square-foot space in the former Nabisco factory.
Organizations are expanding in greater numbers, and as a result are seeking out more space to operate, throwing the supply-and-demand equation out of sync. With all this demand, what is the future for office space in New York City, and how will the rising demand fueled by TAMI tenants be met?
Meeting Needs, Shifting Demand
The city is forecasted to need 52 million additional square feet of office space by 2040. As the demand creeps upward, the cost for renting space is also rising, hitting an average of $71.66 per square foot earlier this year.
The city is looking for solutions and strategies, some of which may include rezoning to meet demands. The future of workspaces may include a higher number of live-work spaces and other, more modern arrangements.
Add to this fact that TAMI tenants may be gravitating away from pricey Park Avenue spaces as they opt for more affordable small and mid-price arrangements. Working remotely is also on the rise and has increased by 79 percent between 2005 and 2012, according to the New York Times.
Understanding these trends and how they impact your business is important for moving forward. Ultimately this demand shift may affect the way we all work and, as a result, the future of office spaces.
Do you need tips on planning your next office space? If so, MC Office Furniture can help. For a no-cost consultation, contact us online, email us at firstname.lastname@example.org or call 917-561-1097 today.