Tech Monthly

New York City | April 2015

In the first quarter of 2015, venture capital funding in the New York
metro area climbed to almost $1.4 billionan increase of 18.5
percent quarter-over-quarter and 45.2 percent year-over-year.
Though fewer venture capital rounds closed in the first quarter
(103 compared with 107 in the fourth quarter of 2014 and 119 in the
first quarter of 2014), the average transaction value was greater.

Technology

50%

Financial Services

Legal Services

40%
30%
20%
10%
0%

Source: New York State Department of Labor, JLL Research

Venture capital funding strong in first quarter of 2015

$2,000

Funding

150

Transactions

$1,600

130

$1,200

110

$800

90

$400

70

$0

50
4Q13

1Q14

Source: PwC Moneytree, JLL Research

Source: JLL Research, Digital NYC, NYS Department of Labor, PwC Moneytree

2015

2014

2013

-20%

2012

-10%

2Q14

3Q14

4Q14

1Q15

Transactions

Midtown and Downtown each captured three tech leases during the
month, while two tech leases were signed in Midtown South.
ShopKeep, the cloud-based point of sales system, signed the largest
transaction of the month, subleasing 22,225 square feet in Chelsea.
Financial software vendor Workday committed to 22,000 square feet
at 350 Fifth Avenue in the Penn Plaza/Garment District submarket.
Eyeview Digital, a digital advertiser, moved to a new 18,783-squarefoot space at 60 Madison Avenue in Gramercy Park.

Tech employment jumps in March

2011

Tech leasing in March continued to reflect the lack of space

opportunities in prime submarkets. While more leases were signed in
March than February (eight vs. five after February revisions), the size
of leases shrank. Tech tenants committed to just 93,050 square feet,
a decrease of 47.1 percent month-over-month. In all, tech leasing
activity amounted to just under 300,000 square feet at the close of
the first quartera marked departure from 2014's record levels.

March 2015
3,185 positions
+6.0% MoM

2010

NYC tech employment showed strength in March, climbing by 9.2

percent (5,700 jobs) year-over-year. The net gain represented the
largest yearly increase among the major sectors. Annual tech job
growth remained ahead of total private growth (+3.0 percent) and
total nonfarm growth (+2.7 percent).

2008

Open tech positions

March 2015
67,400 jobs YoY
+9.2% YoY

Q1 2015
103 transactions
$1,393.8 million

% change from December 2007

March 2015
8 transactions
93,050 s.f.

Tech employment

2009

Venture capital funding

Funding, millions

Tech leasing activity

Notable tech leasing activity in March

Leasing activity

Tenants in the
market

1 ShopKeep
Sublease
53 W 23rd St
22,225 s.f.

Google

2 Workday
New lease
350 Fifth Ave
22,000 s.f.

Noodle Education

3 Eyeview Digital
New lease
60 Madison Ave
18,783 s.f.

GE Tech Division

4 R2Net
New lease
551 Fifth Ave
8,000 s.f.

Samsung

5 IMRE
New lease
60 Broad St
7,100 s.f.

250,000 s.f.

150,000 s.f.

110,000 s.f

100,000 s.f.

Indeed
100,000 s.f.

6 Snap

Interactive
New lease
320 W 37th St
6,406 s.f.

7 Tinypass
New lease
1 WTC
4,936 s.f.

8 Stack

Exchange

Expansion
48 Wall St
3,600 s.f.

Midtown
Downtown
Midtown South

JLL | New York | Tech Monthly | April 2015

Stat of the month

Tech represents less than 5 percent of March leasing activity

Law Firms
2.4%

Tech
4.6%

$1.4B

Financial
Services
32.5%

Other
60.5%

NY metro venture capital funding in Q1 2015

Source: JLL Research

Source: JLL Research

Tech Q1 leasing down from record levels in 2014

s.f. leased
(thousands)

Tech leasing

1,800

Tech employment

Employment
(thousands)

70
68
66
64
62
60
58
56
54
52
50

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

Source: New York State Department of Labor, JLL Research

Something to watch: Tech takes a smaller leasing share in the first quarter
While tech accounted for the secondlargest share of Manhattan office
leasing in 2014, the sector took a
smaller share in Q1 2015.
Tech tenants represented 8.0 percent
of all square feet leased in Manhattan
during Q1, behind financial services,
advertising, insurance and business
services.
In 2014, tech tenants totaled 16.2
percent of all activity.

Share of all leasing activity in Q1

15.5%

Advertising/Marketing/PR

10.5%

Insurance
Business Services

8.6%

High-Tech

8.0%
0%

Source: JLL Research

For more information, contact:

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

30.1%

Financial Services

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