If you’re a real estate broker, you might want to shift your attention from bonus-scrimping Wall Streeters to ramen-eating techies. We’ve known for a while that tech companies are sprouting up at an alarming rate. While some of them go bust, many of them raise funding, hire workers, and therefore need offices. Even if that Bowery apartment seems comfortable now, a fast-scaling web company will need its own digs before long.
Buddy Media, Apple and Facebook top the new CBRE report on major office space deals in the tech sector between 2008 and 2011, increasing their footprints by 550, 450 and 300 percent respectively, the Wall Street Journal reports. Adobe, HP and even Yahoo also expanded dramatically; Google, with its purchase of 111 Eighth Ave., only increased its office space by 43 percent, which amounts to 280,000 square feet.
The number of tech sector-originating real estate deals more than doubled from 2008 to 2011, the report says.
CBRE compares this tech boom to the dot-com era, in which office space was similarly in high demand. The report concludes that today’s highly active tech scene is more sustainable than the 1.0 bubble. Already, Google is hungry for more: After buying basically an entire city block, the company is on the prowl again for another 100,000 square feet.