Tech Firm Triples HQ with New Silicon Alley Lease in NYC
- Jul 01, 2013
Midtown South continues to gain steam as Manhattan’s tech hub, and a new startup just staked its claim to office space in the Silicon Alley neighborhood of the submarket with a new lease agreement. PlaceIQ, a targeted intelligence solutions provider, is relocating from its home on W. 30th St., to a full floor in the approximately 74,000-square-foot building at 115 E. 23rd St., effectively tripling its headquarters space to 6,140 square feet.
First Pioneer Realty Inc. represented the owner of 115 E. 23rd in the transaction, and ABS Partners Real Estate L.L.C. stood in for PlaceIQ. It’s a property with the features that attract the tech crowd. Originally built in 1912, the 12-story tower features high ceilings, an open floor plan and, with a train within a block’s reach, easy access to public transportation. PlaceIQ is setting up shop on the seventh floor.
Grabbing a spot in Midtown South is growing increasingly challenging; the numbers tell the story. The occupancy level in the submarket was just 5.1 percent in the first quarter of 2013, according to a report by ABS, and the direct asking price for space was just over $51 per square-foot.
“The continued high demand for office space in Midtown South has led to a dramatic shift in the market to historically high rents and low vacancy rates,” Douglas Regal, managing director with ABS, told Commercial Property Executive. “This combination of factors has created a very challenging environment for early-stage startups to secure affordable space, and in many cases spurred exploration of alternatives neighborhood such as Lower Manhattan and the Garment Center, where better value propositions exist.”