New York is creating jobs at the fastest pace in 65 years, and with many of those in tech industries, the boom is lifting real estate prices in the hot Midtown South area of Manhattan. Bobbi Rebell reports.
The New York City real estate market is getting amped up thanks to a surge in tech jobs. New York's pace of job creation is at its fastest in 65 years, and where the jobs are has changed. Technology companies have added about 80,000 new jobs since the end of 2009. That's more than double the 30,000 created in financial services. And companies are using prime real estate to attract millennial workers. Jesse Keenan heads the Center for Urban Real Estate at Columbia University (SOUNDBITE) JESSE KEENAN, CENTER FOR URBAN REAL ESTATE, COLUMBIA UNIVERSITY, (ENGLISH) SAYING: "Much of this has to do with the competitive advantage that NYC offers in terms of quality of life, comparing us for instance to San Francisco. Do people really want to ride the Google bus from downtown San Francisco to Silicon Valley, and, you know, we can take the metro, or we can take the subway here, and it's a big advantage, because, ultimately, people, and, particularly, the young people, who offer that competitive advantage, fundamentally, want to live in New York. \ The hot neighborhood, mid-town south has the lowest vacancy rate of any central business district in the country at six percent, according to real estate firm Jones Lang LaSalle. Google, Facebook and other Silicon Valley companies have boosted their presence in the area, turning what used to be an area of storage and showcase buildings, into a big media and technology hub. (SOUNDBITE) JESSE KEENAN, CENTER FOR URBAN REAL ESTATE, COLUMBIA UNIVERSITY, (ENGLISH) SAYING: "Some of our research has found upwards of seventy percent of technology companies here in New York are actually in landmarked historic buildings. So, in a way, they are passing up that modernism for a sense of history." And on that note, the interiors reflect the culture of silicon valley, complete with foosball and air hockey tables, kitchens full of snacks, and of course espresso machines. Howard Dolch is the co-founder of commercial real estate firm Lansco: (SOUNDBITE) HOWARD DOLCH, CO-FOUNDER, LANSCO, (ENGLISH) SAYING: "They want the concrete that was there when the building was built you know you have decades of carpeting that have gone on. Now it's bamboo, polished concrete. and this is mostly this is found in older buildings. " Dolch says many building owners have had to upgrade the infrastructure of the landmark buildings to meet the demands of these companies, but the rising rents have made the investments pay off.