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TechMonthlyNYC April

Tech employment in New York City continued to grow strongly in February 2014, increasing 8.3% year-over-year. Venture capital funding in March 2014 was also up, with 40 companies receiving $260 million. While tech leasing declined in March from the previous month, tech firms still accounted for 12.6% of total leasing activity, the second highest behind financial services.

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45 views

TechMonthlyNYC April

Tech employment in New York City continued to grow strongly in February 2014, increasing 8.3% year-over-year. Venture capital funding in March 2014 was also up, with 40 companies receiving $260 million. While tech leasing declined in March from the previous month, tech firms still accounted for 12.6% of total leasing activity, the second highest behind financial services.

Uploaded by

Anonymous Feglbx5
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Tech Monthly

New York City . April 2014


Tech leasing activity
March 2014 24 transactions 247,483 s.f.

Venture capital funding


March 2014 40 transactions $260 million

Tech employment
February 2014 4,900 jobs YoY +8.3% YoY

Companies hiring
March 2014 1,504 companies +0.0% MoM

Tech employments upward trend continued in February as the sector expanded by 8.3 percent year-over-yearthe largest yearly change since mid-2012 and the largest major industry employment expansion. Tech also posted month-over-month gains, adding 1,900 jobs in February. Venture capital funding sprang forward into March with 40 companies receiving funding valued at more than $260 millionNew York Citys largest fundraising month year-to-date. Venture capital funding is up almost 12 percent from the same time last year. Out of the 40 companies that received funding in March, the average company received about $6.6 million, with four companies receiving more than $20 million. M&A activity remained strong during the first quarter of 2014 with 10 New York tech companies acquired, surpassing the number of M&A transactions in the first quarter of 2013. After an atypical January which saw more than 660,000 square feet leased, tech leasing declined for the second consecutive month with 247,483 square feet leased compared to 337,785 square feet in February. Still, tech accounted for a large share of total activity in March at 12.6 percent, just behind financial services. Leasing activity was strong in Midtown, where tech firms signed 12 of 24 total tech leases for the month, followed by Midtown South with eight. As leasing activity decreased in February, so did large transactionsonly one lease larger than 25,000 square feet was signed in March. The average tenant leased 12,880 square feet, which is about 3,000 square feet less than in February. Facebook completed the largest lease of the month, acting on its 60,000-square-foot option to take more space at 770 Broadway. Facebook initially expected to exercise this option after occupying the space for two years, but it decided to act early after seeing the dynamic growth in the area. Sizmek, a digital advertising firm, signed the second largest lease of the month: 21,100 square feet at 401 Park Avenue South.

Tech employment growth climbs higher


50% 40%
% change from December 2007 Technology Financial Services Legal Services

30% 20% 10% 0% -10% -20%


2014
2008 2009 2010 2011 2012 2013

Source: New York State Department of Labor, JLL Research

Venture capital funding on the rise in 2014


Monthly $275 Cumulative $800

$250

$600

$225

$400

$200

$200

Source: CrunchBase, JLL Research Source: JLL Research, CrunchBase, Made In NY, New York State Department of Labor

Something to watch: Hightech salaries trend higher and higher


The average salary of a U.S. tech employee increased to $87,811 in 2013nearly a three percent growth from 2012 and almost 13 percent growth from 2008. Tech employees on average make about 48 percent more than the average U.S. employee across all occupations. Manhattan tech employees average about $93,915 a year, almost 50 percent more than the average U.S. employee, but about 13 percent less than their counterparts in Silicon Valley. Silicon Valley is the most competitive tech hub in the U.S., so it is not surprising that the average Silicon Valley tech worker earns upwards of $108,000 a year. U.S. Avg Salary Manhattan Tech Avg Salary $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 2008 2009 2010 2011 2012 2013
Source: JLL Research, Census.gov, Dice.com

U.S. Tech Avg Salary Silicon Valley Tech Avg Salary

JLL Tech Monthly New York City April 2014 2

Stat of the month

Notable tech leasing activity in March

$93,915
Average Manhattan tech salary
Source: JLL Research

Tech employment and leasing finish the first quarter strong


s.f. leased (thousands)

Tech leasing

Tech employment

Employment (thousands)

2 3

1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Source: New York State Department of Labor, JLL Research

66 64 62 60 58 56 54 52 50

Month-over-month, tech gains larger share of total leasing in March


Law Firms 1.1% Tech 12.6%

Financial Services 26.9%

Other 59.3%

Midtown Downtown Midtown South


Source: JLL Research

1 3

Leasing activity

Facebook Expansion 60,000 s.f.

Sizmek
New lease 21,100 s.f.

Relativity Media
New lease 16,784 s.f.

Travel Zoo
New lease 13,000 s.f.

Liberty Journal
New lease 11,521 s.f.

Tenants in the market

Google
360,000 s.f.

Amazon
300,000 s.f.

Etsy.com
100,000 s.f.

Usablenet
100,000 s.f.

Uber
100,000 s.f.

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