Trinity Real Estate, a division of Trinity Church located near the World Trade Center site, has had a pretty good run. In the past 14 months, Trinity saw occupancy rise from 84 percent to 92 percent and watched rents ratchet up 26 percent. According to Crain’s, a big part of that growth is thanks to tech companies, or at least tech-driven startups like e-commerce site One Kings Lane, which is co-founded by Mark Pincus’s wife Alison Pincus, and moved into 205 Hudson St. in May.
Trinity owns 18 former industrial buildings in the Hudson Square area and startup types, it seems, dig the “loftlike spaces, with large windows and big floor plates.” But it’s not just Trinity:
“Tech-driven firms such as One King’s Lane, along with an army of media companies, were crucial drivers of commercial leasing last year. In all, they accounted for 28% of Manhattan leasing in 2011, up from 18% a year earlier, according to Cassidy Turley. That increase also came at a time when financial firms, which make up Manhattan’s largest tenant group, shed staff.”
Thanks to that growth, Hudson Square, which goes from Canal Street to West 14th Street and Sixth Avenue to the Hudson, claimed the largest drop in vacancy rates, along with the highest increase in rents for coveted buildings. Tech and media companies also helped Midtown south, from 32nd St. to Canal, claim “the lowest vacancy rate of any central business district in the country,” says Crain’s.
Students of the dot-com era will recall that Midtown south went through its own boom and eventual bust before, but Joseph Harbert, CEO of Cushman’s New York Metro Region tells Crain’s, “This time feels different, more real,” thanks to actual products and “very often” profits. Wait, landlords make a distinction between profits and VC funding, right?