Why America's Technology Giants Flock to Part of NYC

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<p class = "Canvas-Atom Canvas-Text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "In February 2019, after a lot of fanfare, Amazon & nbsp;abandoned plans& nbsp; Establishment of a second headquarters in the Queens district of New York City after a significant backlash against tax incentives. Less than a year later, the e-commerce giant announced that it was indeed & nbsp;Expansion into the Big Apple& nbsp; – it only comes to Manhattan, not to Queens. "data-reactid =" 31 "> After much back and forth, Amazon announced in February 2019 plans to build a second headquarters in the New York City borough of Queens after a major setback on tax incentives it would receive. Less than a year later, the E -Commerce giant known that it is actually expanding in the Big Apple – only to Manhattan, not to Queens.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "While politicians & nbsp;like the US representative Alexandria Ocasio-Cortez& nbsp; saw the latest news as a win for the city, showing that tax incentives are not required to attract technology companies. Some New Yorkers pointed out that technology giants are still staying away from outskirts like Queens. "data-reactid =" 32 "> During politicians like the US representative Alexandria Ocasio-Cortez Some New Yorkers saw the latest news as a win for the city, showing that tax incentives are not necessary to attract tech companies.

<p class = "Canvas-Atom-Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "A Yahoo Finance analysis of the five most important technology companies – Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google (Aco.Acol), also known by investors as FAANG – shows that big tech has already entered New York City, but most offices are concentrated in one of the five boroughs – Manhattan. "data-reactid =" 33 "> A Yahoo The financial analysis of the five most important technology companies – Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google (paragraph, paragraphL), also called FAANG – shows That Big Tech was already successful in New York City, but most of its offices focus on one of the five boroughs – Manhattan.

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "Amazon has announced that it will rent office space for 1,500 employees in Manhattan's Hudson Yards, a mega-mixed-use development with no tax incentives, weeks afterFacebook has signed a lease& nbsp; for more than 1.5 million square meters of office space in the same area. For example, "data-reactid =" 34 "> Amazon announced the leasing of office space for 1,500 employees at Hudson Yards in Manhattan, a mega-development with mixed use weeks after Facebook signed a lease for more than 1.5 million square meters of office space in the signed the same area without tax incentives.

(David Foster / Yahoo Finance)

"Don't look at this: Amazon is coming to NYC anyway – * without * the public having to finance dubious deals, helipad handouts for Jeff Bezos and corporate giveaways," tweeted Ocasio-Cortez shortly after Amazon's announcement on June 6. December .

But for Queens and the other outskirts of New York City, the lease doesn't do what HQ2 promised, according to Yahoo Finance's analysis. The outskirts have not yet taken up office space from Amazon or other technology giants like Facebook, Google, Apple and Netflix.

"Although Amazon opened at Hudson Yards, it is not what they planned that is a devastating loss for us [the outer boroughs’] local economies, ”said Andrew Feldman, New York City broker at New York City Brokerage Compass. "This deal would have catapulted the mindset of expanding to the outskirts."

<h2 class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""We have no problem bringing business to Manhattan""data-reactid =" 58 ">"We have no problem bringing business to Manhattan"

<p class = "Screen Atom Screen Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Silicon Valley has long been a hub for Big Tech's parent company by Google, Alphabet, alone occupies 11.2 million square meters of office and building space in the corner of Silicon Valley, Mountain View, California.report, But big technology companies have expanded their presence in the Big Apple, with significant progress in 2018 when Google, Amazon, and Facebook announced extensions in New York City. "Data-reactid =" 59 "> Silicon Valley has long been a hub for, According to the company's latest annual report, Google's parent company Alphabet alone occupies 11.2 million square meters of office and building space in the corner of Silicon Valley in Mountain View, California, in the Big Apple , with significant progress in 2018 when Google, Amazon and Facebook announced extensions in New York City.

In fact, Manhattan has become a true center for large tech offices and, according to a Yahoo finance analysis of publicly accessible commercial properties, occupies more than 6.2 million square meters of rental space.

But Facebook, Amazon, Apple, Google, and Netflix have not shown much interest in their core work area on the outskirts of New York. Amazon was offered $ 3 billion in tax breaks last year to visit Long Island City in Queens, with the promise of creating 25,000 technical jobs on the Queens coast.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" We have no problem bringing companies to Manhattan , but we have been trying to develop the Queens waterfront for decades, ”said New York Governor Andrew CuomoAssociated press"data-reactid =" 62 ">" We have no problem bringing companies to Manhattan, but we have been trying to develop the Queens Waterfront for decades. Governor of New York Andrew Cuomo announced to the Associated Press last month after news of the Amazon Hudson Yards lease was released.

Technology giants have no outskirts offices, though they have 1.1 million square feet of commercial space, such as warehouses in Staten Island, Brooklyn and the Bronx. There were no large technical commercial leases in Queens.

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "Manhattan leases can be more expensive, but they can It is more expensive to attract workers who do not want to commute to the outskirts, and high-paying tech workers belong to a population group that could afford to rent in Manhattan.the average $ 3,639 for a bedroomAccording to a 2019 report by New York-based real estate company Douglas Elliman. "Data-reactid =" 68 "> While rents in Manhattan may be more expensive, they could attract workers who don't want to commute outside, according to a report by the New York-based real estate company Douglas Elliman of August 2019 includes high-paying tech employees in a population group that could afford Manhattan rents that averaged $ 3,639 for a bedroom.

"Large tech companies are in Manhattan because they want to attract young people, they want to attract the best of the best, they want you to be young, smart, and hip," said Dottie Herman, CEO of Douglas Elliman.

According to a Yahoo Finance analysis, only 15.5% of Big Tech's commercial space in NYC is on the outskirts. The main player outside of Manhattan, Amazon occupies just over a million square meters, including a photo studio in Brooklyn, a Prime Now distribution center in the Bronx and a fulfillment center in Staten Island. Netflix has a 160,000-square-foot studio in Brooklyn.

Amazon, Facebook and Google each used between 2.2 and 2.5 million square meters of office space in New York City, which together make up about 95% of Big Tech's office space in New York City. Netflix only had 0.3 million, while Apple only had 45,000 square feet of office space in New York City. This list does not include retail locations that would give Apple and Amazon significantly more space.

While some residents and local politicians don't want to offer financial incentives to lure large companies to the outskirts, Feldman of Compass believes that technology giants – especially with the right tax breaks – will eventually venture beyond Manhattan.

"People are already seeing the value of a stop or two, and that's why the prices there aren't that different," said Feldman. "Ultimately, I think it will happen. It's part of a bigger equation – taxation is always a concern and an incentive."

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Sarah Paynter is a reporter for Yahoo Finance. Follow her on Twitter@sarahapaynter"data-reactid =" 74 ">Sarah Paynter is a reporter for Yahoo Finance. Follow her on Twitter @sarahapaynter

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Krystal Hu is a reporter at Yahoo Finance. Follow her on Twitter:@readkrystalhu"data-reactid =" 75 ">Krystal Hu is a reporter at Yahoo Finance. Follow her on Twitter: @readkrystalhu

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