How Much Office Space Per Employee Do You Need?
One of the lesser known challenges of running a business – one that often gets lost among the many other responsibilities related to delivering goods and services, dealing with financials,... Read More
6 ways to save $$$ on your office space.
Learn more >April 28, 2017 | by Melissa Landon
Reviewed by real estate expert Jonathan Tootell
Updated May, 2018
If you’re planning to start a business in New York City or planning to move your business there, you might want to consider setting up shop in Brooklyn. While NYC’s famous tech scene is concentrated in Silicon Alley, Brooklyn is an excellent and appealing option for establishing a new or growing business. In fact, since the end of 2009, Brooklyn has enjoyed overall job growth of 29%, almost twice Manhattan’s 16% job growth.
Brooklyn is not only home to powerhouses like HUGE, Livestream, Etsy, and VICE but also provides an excellent incubator for startups. The borough’s impressive prices, startup culture, access to company funding, networking opportunities, and unique neighborhoods all make it an ideal place for a business to thrive. Brooklyn has a lot to offer: here are just a few factors that make it an interesting, fruitful place to rent office space.
Pricing is a valid concern for startups and more established companies alike. Brooklyn affords a variety of commercial rental options to meet the needs of any budget. Office space rents for an average of $41.35 per square foot, and businesses can find subleased space for an average of $38.72/sqft. Overall vacancy is 17 percent, with an overall inventory of more than 43 million square feet. Certain neighborhoods in the borough offer particularly affordable spaces, such as DUMBO and Downtown Brooklyn.
Watch out, Manhattan: Brooklyn is growing in popularity for startups. We can see this in the number and variety of startups popping up in the area. Brooklyn is already home to an array of venture-backed startups in fields such as mobile gaming, comparison shopping, shoelace technology, biotech tools, and anything else you can think of. We can also see evidence of Brooklyn’s growing startup culture by watching the money flow. From 2010 to 2015, Brooklyn attracted upwards of $890 million in venture funding, according to CBInsights.
Startups have an endless potential for variety and revenue, but let’s not forget their potential to change the world for the better. Moving to Brooklyn doesn’t just mean becoming part of NYC’s bohemian backbone; it means being part of a global innovation hub.
Maybe you have a great business idea, a talented team, and an exciting vision, but you just don’t have all the funds you need to make it happen. Tony Hsieh, CEO of Zappos, an online retailer that specializes in shoes, once said: “Chase the vision, not the money; the money will end up following you.”
One huge reason for that is the borough’s large network of angel investors that provide support to Brooklyn-based companies, especially those in the media and food and beverage industries. Set up shop in Brooklyn, and you may just find an investor who shares your vision. Noteworthy angels in include Joanne Wilson, Gary Vaynerchuck, and Power of Habit author Charles Duhigg.
Some companies are venturing away from Queens in search of a shorter commute, a more tight-knit community, and more intimate networking opportunities. “We started looking [for office space] in Manhattan first, and we realized it is too crowded,” said Chief Technology Officer James Kenigsberg of 2U, Inc., a technology company. “We wanted a little bit of a micro neighborhood, more like a community than a bunch of businesses located near each other,” Keiko Morris writes for The Wall Street Journal.
Networking in Brooklyn tends to be characterized by smaller Meetups and workshops interspersed with bigger outposts like Northside, an annual five-day meetup for creative and cultural trendsetters, and Digital DUMBO, a collective that plans events for digital and creative communities in NYC and around the world.
The Brooklyn Chamber of Commerce regularly sponsors many of the borough’s small meetups designed to combine business and fun so like-minded professionals can get to know each other. For example, the monthly meetup Business Before Hours divides attendees into small groups so people can dialogue and create meaningful connections. Those new to the area can participate in Chamber Visits, the Chamber of Commerce’s event that provides a tour of lesser-known areas of Brooklyn.
Brooklyn boasts more than 2.6 million residents, which make it the most populous borough in NYC. Known for its music, art, culture, cinema, and style, it offers cheaper office rent than Manhattan with plenty of available inventory and more in the works.
If you decide to run your business out of Brooklyn, you’ll have a wide variety of interesting neighborhoods to choose from. Here are just a few. The first three are the most popular and desirable neighborhoods in the borough, and the second three are rapidly changing and growing in demand.
If you decide Brooklyn is the right place for your business, it’s time to start looking at available office spaces. Maybe you’re weighing the pros and cons of leasing vs. subleasing or trying to decide which neighborhood is best for you. One of our experienced brokers would be happy to answer all your questions and help determine the best options for you and your company.
SquareFoot is a new kind of commercial real estate company. Our easy-to-use technology and responsive team of real estate professionals delivers the most transparent, flexible experience in the market. Get in touch to start your search today.