It sounded like the East Coast digs weren't quite as fancy as Twitter staff are used to. "There is something charming about a bare office space and a whole team working within earshot," tweeted Jessica Verrlli, Twitter's lead for corporate development.

This morning came an update. This is not in fact a Twitter office in New York, just a temporary work space for the folks Twitter hired here. Still, it's a clear sign the company has a growing presence in NYC.

The new Twitter layout, released last week, put an emphasis on transforming the site from a stream of short text messages to a broader space for consuming full articles and video. This extra real estate is sure to be rich territory for advertising as well.

"A lot of Silicon Valley companies are realizing the growing need for media and advertising savvy," says Somak Chattopadhyay, a local VC veteran and principle at Greenhill SAVP specializing in technology. "No place can offer that better than New York."

bpopper@observer.com

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