REBNY Commercial crossfire on midtown south reveals trends and future for Silicon Alley

The Real Estate Board of New York's (REBNY) Commercial Crossfire on Thursday, December 10th, ignited a discussion on the hot Midtown South market and the trends the area is setting, which have made it the talk of the real estate industry. The panel was organized by Christel Engel and James Caseley from REBNY's Commercial Board of Directors. The discussion was led by moderator Keith Turco, President of Gyro Advertising, and included: Mark Lapidus, Director of Real Estate Operations, WeWork; Debra Larsen, Founder & President, WorkHouse NYC; Jake Schwartz, CEO, General Assembly; Ryan Simonetti, Co-Founder & Principal, Convene; and Jeff Sussman, Executive Vice President, Edward J. Minskoff Equities. "Until recently, New York didn't have a tech industry because of high prices, but now they're coming back and there's a big push to have more collaborative and efficient spaces available with flexible, month-to-month contracts," said Mark Lapidus of WeWork. Spaces in the neighborhood are not cookie cutter and tenants are looking for the architectural features they tout - high ceilings, brick walls and wood floors - regardless of what industry they're in, explained Jake Schwartz of General Assembly. Lapidus mentioned that many corporate clients are even looking to put their staff in these collaborative spaces to encourage them to think outside the box and work outside of their normal comfort zone. Panelists also noted the return of services to the workplace as an accompanying factor to this trend of collaborative workspaces in Midtown South. "The workplace of today is service and tenants are looking for more flexible, collaborative spaces that are have easy access to food, amenities and tout the latest in technology," explained Ryan Simonetti whose company, Convene, provides on-site production, culinary, technology and experience design services, in addition to corporate event planning, conference space and group hotel management. To keep up the momentum in Midtown South, Sussman explained that landlords have to listen to what tenants are looking for and think about community, outdoor spaces and services. All panelists agreed that the next area positioned for this kind of momentum is Brooklyn. Shown (from left) are: Jeff Sussman, Edward J. Minskoff Equities; Jake Schwartz, General Assembly; James Caseley, REBNY Commercial Board of Directors, ABS Partners Real Estate LLC; Ryan Simonetti, Convene; Christel Engel, REBNY Commercial Board of Directors, Colliers International; Debra Larsen, WorkHouse NYC; Keith Turco, Gyro Advertising; Mark Lapidus, WeWork.Sussman kicked off the discussion identifying tech and biotech tenants as the main drivers of the Midtown South market. Along with creative companies, these young firms have flocked to this hip and easily accessible neighborhood, that Debra Larsen of WorkHouse NYC noted, provides the workspace, amenities, and environment they seek.