Numbers for the last quarter from the NVCA and PricewaterhouseCoopers showing an uptick of venture capital into the New York metro area aren’t just a boon for the start-ups who can finally afford that kegerator. A reported $624 million in Q2 funding–a $154 million increase from last year–also brings good tidings for the real estate sector, although, like all things start-ups these days, the potential tenants are thinking lean, reports GlobeSt.com.
“We probably won’t see a massive flood gate of VC firms flocking to New York but I do think there will be probably several more firms looking for office space there,” Emily Mendell, a spokesperson for the NVCA told the site, warning that it would likely just mean offices to house a few limited partners. But tech companies themselves are stretching their wings.
Brendan McGee, the New York City regional manager for TechSpace, with locations in prime tech corridors like Chelsea, the West Village, and Union Square, told the site, “We’re close to fully occupied at all three New York City locations, so I’d definitely say our demand is high.” Rents there, which range from $1,200 a month for a 100 square foot space to $20,000 for a 35 person office suite, include administrative IT support staff. Past clients like LinkedIn, Trulia, and Pandora moved out after outgrowing of the space.
As start-ups like Gilt Groupe scale, so has the amount of room it occupies at its headquarters on 2 Park Ave. Growing pains are even prompting some start-ups are looking beyond the city’s borders. In Etsy’s case, it sounds like its customer service building is headed all the way upstate.