Tech Sector Continues to Buoy Commercial Real Estate

ZocDoc's family is getting too big for the nest.

On a trip to the ZocDoc office in Soho last week, Betabeat noticed a plastic hard hat sitting on the edge of co-founder Cyrus Massoumi’s cubicle. It was leftover from the company’s recent expansion, he explained, which necessitated knocking out a wall so ZocDoc could just about double its square footage. After suffering through construction during the work week, employees came in on a weekend and bashed the wall in.

Then Mr. Massoumi walked us to another end of the floor, where a vast open, unfinished hall stood waiting for the next time ZocDoc calls up their landlord and asks for more space, “which could be tomorrow,” he joked.

Tech companies are the new darlings of New York real estate. Although they often build in provisions to protect themselves from a start-up flameout, landlords seem to prize tech tenants of late, rooting for the industry almost as loudly as it cheers for the financial sector.

The ZocDoc story reminded us of Two Tree management, the tech-friendly landlord of Dumbo, which has to make similar accommodations to its tenants including Etsy, the fast-growing do-it-yourself marketplace that’s in constant need of more space. Today, a former AT&T facility in New Jersey that sat empty for 10 years is being revived as a 420,000 square foot data center with 1,000 employees. Tech Sector Continues to Buoy Commercial Real Estate