A New York Times article titled Square Feet: Tech Firms in Manhattan Trade Trendy Lofts for Midtown Bargains takes a look at the current growth in popularity for business space in Manhattan's Silicon Alley. "Silicon Valley is on their fifth generation," said Kevin Ryan, chief executive of the Gilt Groupe. "We're on our second or third generation of New York entrepreneurs, combined with a bigger and better infrastructure to support it, so the scene is just mushrooming."
According to an article from The Economic Times, companies like 10gen and Firespotter Labs contribute to New York's growing role as an Internet hub, particularly for the new generation of online media and retail companies. Last year, 256 New York tech startups raised $2.2 billion in investment, up from 149 and $1.3 billion five years ago, according to the National Venture Capital Association.
An excerpt from the NYT article:
More than 100 Internet-based marketing firms, retailers and social networking companies are based in the area between the Flatiron Building and Central Park, out of about 1,400 similar businesses across the city, according to data compiled by NYC Digital, an initiative started last year by Mayor Michael R. Bloomberg to promote the city's technology industry.
"The boundaries of Silicon Alley are definitely pressing outward," said Jonathan Serko, a broker with Cushman and Wakefield who has worked to bring tech companies to Midtown. He added, "some of the companies are moving out of necessity."
In pockets of downtown Manhattan, commercial rents have spiked in recent years as increasingly fashionable neighborhoods like Chelsea, Greenwich Village and the financial district have welcomed a surge of new businesses. Residential conversions have also gobbled up the types of industrial buildings that tech companies once favored.
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