The boundaries of Silicon Alley are being expanded because more startups are looking for cheaper rent outside of lower Manhattan, according to the New York Times. The NYC digital initiative compiled data which revealed that more than 100 Internet-based marketing firms, retailers and social networking companies are based in the area between the Flatiron and Central Park, out of about 1,400 similar businesses in the city. Rents in Midtown can be $40 a square foot compared with up to $70 a square foot in trendier areas, according to Cushman data.
Ideeli, an online fashion retailer, will be moving its production facilities this month to a new 23,500 square foot space in the garment district. They were previously located in SoHo. Also, LinkedIn recently signed a lease for a 10,400 square foot space on the 24th floor of the Empire State Building.
“The boundaries of Silicon Alley are definitely pressing outward,” said Jonathan Serko, a broker with Cushman and Wakefield who has worked to bring tech companies to Midtown. He added, “some of the companies are moving out of necessity.”