Tech Monthly

New York City | January 2015

After a surge in November largely due to Amazons 470,000-squarefoot lease, tech velocity dipped in December to 594,171 square feet
of activity (compared with 746,383 square feet in November). Media
website BuzzFeed signed the largest lease of the month, committing
to 194,123 square feet at 225 Park Avenue South in Gramercy Park.
In the second largest lease of the month, Bloomberg LP leased
188,608 square feet at 731 Lexington Avenue in the Plaza District.
The tech sector accounted for 16.2 percent of Manhattan leasing
activity in 2014, an increase of 4.9 percentage points year-over-year.
Tech was second only to financial services, which accounted for 24.7
percent of all activity but saw a 3.2 percent decrease in market share
from 2013. By the end of 2014, tech and new media companies had
leased more than 5.0 million square feet of office space. Each year,
the gap in activity between tech and financial services has steadily
narrowed.

Technology

50%

Legal Services

40%
30%
20%
10%
0%

2014

2013

2012

2011

-20%

2010

-10%

Source: New York State Department of Labor, JLL Research

2014 concludes with more than $5.0 billion in venture funding

Monthly
$800
$600
$400
$200
$0
Source: CrunchBase, JLL Research

Source: JLL Research, CrunchBase, Digital NYC, New York State Department of Labor

Financial Services

Cumulative
$6,200
$5,600
$5,000
$4,400
$3,800
$3,200
$2,600
$2,000
$1,400
$800
$200

$ millions

NYC tech companies raised $366.6 million in venture capital funding

across 61 successful transactions. The amount of funding raised was
an increase from $289.7 million in November, though fewer rounds
were closed (61 compared with 65 in November.) Fashion
e-commerce site Rent the Runway closed the largest round in
December, securing $60.0 million. In all, 2014 concluded with NYC
startups raising more than $5.0 billion in fundinga record high since
the dot-com boom of 2000.

December 2014
3,231 positions
8.3% MoM

Tech employment climbs in December

2009

NYC tech employment continued on an upward trajectory in

December, increasing by 6.4 percent year-over-year. The sector
added 1,800 payrolls month-over-month. Tech employers remained
keen on hiring in December, as the total number of open positions
increased by 8.3 percent month-over-month to 3,231.

Open tech positions

December 2014
66,200 jobs YoY
+6.4% YoY

December 2014
61 transactions
$366.6 million

2008

Tech employment

% change from December 2007

December 2014
12 transactions
594,171 s .f.

Venture capital funding

$ millions

Tech leasing activity

Notable tech leasing activity in December

Leasing
activity

1
3

BuzzFeed
New lease
194,123 s.f.

Tenants in the
market

Google
250,000 s.f.

Bloomberg LP
Renewal

188,608 s.f.

Noodle
Education
150,000 s.f.

Offerpop
Sublease
46,000 s.f.

Bounce
Exchange
New lease
30,917 s.f.

Samsung
100,000 s.f.

Indeed
100,000 s.f.

Centro
Midtown
Downtown
Midtown South

New lease
43,849 s.f.

One Kings Lane

100,000 s.f.

JLL | New York | Tech Monthly | January 2015

Stat of the month

Tech takes smaller share in December leasing activity

Law Firms
16.1%

16.2

Tech
14.7%

Percentage of overall 2014 leasing activity by

tech tenants

Other
50.3%
Financial
Services
18.8%

Source: JLL Research

Source: JLL Research

Tech leasing and employment finish 2014 on a high note

s.f. leased
(thousands)

Tech leasing

Employment
(thousands)

Tech employment

1,800
1,600
1,400
1,200
1,000
800
600
400
200
0

68
66
64
62
60
58
56
54
52
50

Source: New York State Department of Labor, JLL Research

Something to watch: Tech accounted for second largest portion of 2014 leasing activity
Tech tenants captured the second largest
share of recorded leasing activity in 2014,
with 16.2 percent of total square feet
leased.
Tech leasing activity in 2014 represented
a 4.9-percentage-point increase from
2013 when the sector accounted for 11.3
percent of activity.
Financial services maintained the largest
market share but saw activity fall 3.1
percentage points year-over-year.
Source: JLL Research

For more information, contact:

Tiffany Ramsay
+1 212 812 6515
tiffany.ramsay@am.jll.com

Financial Services
High-Tech
Legal Services
Education/Healthcare/Nonprofit
Media & Entertainment
Advertising/Marketing/PR
Business Services
Information
Apparel/Textile
Retail/Wholesale Trade
Government
Other
Real Estate
Insurance
Architects & Engineers
Manufacturing

16.2%

24.7%

% of total square feet leased, all transaction types

0%

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10%

20%

30%