You would think that with the whole world stuck in their homes with full WiFi connection, tech firms would be absolutely thriving.
Contrary to belief, the tech industry is struggling, and tech firms are having difficulty paying rent. A new report conducted by the Center for an Urban Future indicates that businesses are seeking any type of relief to keep their office space.
Over the past decade, the tech industry carried the city’s economy. It employed more than 330,000 people prior to the pandemic. It also brought economic diversity which was previously dependent on Wall Street.
Although there are certainly some businesses that actually need to continue to hire, a “sizeable portion” of the city’s tech force is experiencing a “dramatic decline in sales.” These companies need relief.
Hicham Oudghiri, the CEO and co-founder of data firm Enigma is pleading for a rent freeze. His company has seen a 50% decline in sales.
“Help would be a real moratorium on commercial rent. If there is anything New York City [could do to help it], it would be that,” Oudghiri said to Crain's New York.
Because the industry has become a powerhouse in the city, the decline of the economy is expected to hit the real estate industry even harder. Already hurt by the decline of retail and restaurants, the industry really needs tech support.
The city has 32 million square feet of office space leased. 25% of that belongs to tech firms.
There are currently bills at the state level calling to waive commercial rent.
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To read the Center For An Urban Future report, click here: https://nycfuture.org/research/tech-disrupted
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