Office sharing got its start as a smart alternative to the traditional way of finding an office. Initially, the concept was adopted by flexible business owners willing to look at office space in a new way, but in the past 4 years, since PivotDesk got its start, the trend has exploded and we’ve seen businesses of all sizes from even the most surprising industries jumping on board.
Why? To be concise: flexibility. For a company looking to sign a lease on a space larger than they need at the time of signing, office sharing offers a way to offset costs while filling empty desks. And for a company in need of office space, we provide stable yet flexible offices in some of the most desirable parts of town.
Brooklyn, Manhattan’s trendy cousin, shares a similar story.
At first only the most intrepid of startups made the move to the borough, in search of more affordable real estate options and popular warehouse style workplaces. But now, as Manhattan’s price per square foot continues to stay high, we’re seeing more and more businesses making the switch.
And it’s hard to blame them.
In Manhattan, space is tight, and rents are climbing. The average annual cost per square foot in Midtown is $73, while prices range from $15-$70 per square foot in Brooklyn. Manhattan’s office market is the 10th most expensive in the world, according to a CBRE report.
And the exodus is reflected in our office sharing data data.
In 2015 we saw a 300% growth in inquiries in Brooklyn, compared to 2014, and the value of our booked spaces in Brooklyn was 34 times greater than the year before.
And while DUMBO and Williamsburg are full of notable companies from VICE to Tough Mudder, only recently have we seen office sharing really taking off in Crown Heights, Sunset Park and Brooklyn Navy Yard. Our office sharing data shows business expanding into these areas, proving that Brooklyn’s lure goes further than DUMBO and Williamsburg and, it appears, is here to day.
This neighborhood, set on the eastern edge of Prospect Park, is home to around 140,000 people. Developers are attracted to the area’s commercial inventory for its “good bones.” Particularly along its east side, Crown Heights has a collection of underutilized industrial buildings with the features that draw startups and creative types like a can opener draws cats.
A great example of this is a new office and retail development was just opened in Crown Heights last April. 1000 Dean, the $30 million redevelopment of the 150,000-square-foot former Studebaker Service Station, is leased to a range of businesses, including creative firms like architects and filmmakers. First-floor tenants Berg’n, a 9,000-square-foot food and beer hall anchor the four-story building, helping to perpetuate the mixed-use character of the neighborhood. Office space options here range from 500 square feet and up.
In the past 5-10 years, we’ve seen quite a few manufacturing companies move into the area in search of affordable industrial space. But recently, startups and other businesses favoring expansive warehouse-type workplaces have begun to move into Sunset Park.
The area boasts an impressive Manhattan view, plenty of quaint pre-war brownstones and tons of industrial space. Even larger, more established companies like TIME Inc. are making the switch.
Brooklyn Navy Yard
Probably the most exciting thing going on in Brooklyn these days, from a real estate perspective is this massive redevelopment project along the East River. Still underway, the project will create or adapt 12 industrial buildings, adding a total of over 2 million square feet of retail, commercial, and industrial space.
Current tenants run the gamut, from design firms and creative studios to manufacturers, architects, contractors, engineers, and electronics production. Spaces range from modest to gargantuan. We look for heavy office sharing interest from this area.
Looking to branch out into Brooklyn? We’ve got a range of services to choose from.
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