Tech and the City – December 2016

VC funding holds, despite a decrease in job count.

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Jan 24, 2017, 11:39 AM

Tech and the City is a bite-size series from TechSpec. Check back each month for a quick taste of what’s happening with tech in New York City.

New York City’s year-over year tech job count decreased again in November 2016. A talent shortage, selective investors and recent political and economic uncertainty combined to weigh on the total job count throughout the year. Nevertheless, Manhattan saw a rise in tech leasing volume and quarterly (Q3 2016) VC funding held firm across the city.


What's new?

Job losses continue: November 2016 marked the sixth consecutive month of tech job loss citywide with industry employment falling 4.4% over the course of the year. A lack of available talent, investor selectivity and recent economic and political uncertainty all played a role.

VC funding holds steady: Around $1.3 billion was raised during Q3 across all sectors, a figure relatively unchanged from the second quarter. But tech firms increased the total amount of their VC funding by 13.1% in Q3 (compared to Q2 levels), capturing $1.1 billion in investment.

Industry leasing volume rises: Tech-centric leasing volume picked up a bit after a quiet October with six transactions in November totaling more than 161,000 square feet. After three months without a lease being completed of more than 50,000 square feet, one was recorded during the month.

Startup count: 1,546 (+2.4% MoM)

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Where are companies moving in?

Six companies signed leases in November 2016, with the majority of activity in Midtown South. One lease was also signed in Midtown.

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Top trend to watch in the NYC tech market right now?

Year-over-year tech job growth. While tech was one of the city’s fastest growing industries, growth has tapered off. As of November, tech jobs totaled 65,800, a 4.4% decrease year-over-year. That’s the sixth straight month tech’s seen job counts decline after years of rapid growth.


Researcher: Tiffany Ramsay | Editor: Michael Cronin