Connect Media | April 5, 2019
The real driver in the outer boroughs’ growth has been TAMI (technology, arts, media and information) firms, GFI Realty Services says in a new report. After other Manhattan-based TAMI tenants followed Kickstarter’s lead in relocating from the Lower East Side to Greenpoint for closer proximity to its workforce, the migration began driving investment and development decisions.
“It’s hard to overstate the importance of the ‘tech effect’ in making the outer boroughs what they are today,” said GFI’s Justin Fitzsimmons. “Once TAMI companies began to move to Brooklyn, the surrounding areas’ already-robust residential markets truly took off.
“As a result, many Brooklyn neighborhoods inadvertently became live-work-play environments, a model that further reinforced investors’ confidence in them,” he continued.
Even Amazon’s decision to scrap plans for a Long Island City campus illustrates the TAMI effect on real estate, says GFI. Before the e-commerce giant pulled back, the area’s already-robust housing market skyrocketed.
Pictured: Kickstarter headquarters in Brooklyn. Image courtesy of Ole Sondresen Architect.