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.
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)
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.
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