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The Empire State
Foreign Investors, High-Tech Firms Join in Singing 'I Love New York'
By Ed Silverstein
When the “I Love New York” jingle was first released in the 1970s many people associated it with Broadway musicals. But increasingly the catchy tune is being sung by those involved in international trade and promising new technologies.
Whether it is in Manhattan, one of the outer-boroughs, or upstate cities such as Albany, Buffalo and Rochester, NewYorkState is innovatingtoensure it remains competitive in a global economy.
Given the low price of the dollar compared to other currencies, the entire state of New York is also growing increasingly international—building on New York City’s reputation as a global financial center. There is potential for far greater foreign investment inNewYork during 2008.
Brian McMahon, executive director of the New York State Economic Development Council, saysNewYork already attracts the second highest amount of direct foreign investment of any state. In 2005, it totaled over $62 billion. Most of it came fromWestern Europe and Japan.
Just saying the name “New York” helps market New York globally.
“New York has incredible potential to leverage its brand around the world,” says Daniel Gunderson, co-chairman of the Empire State Development Corporation. No other state’s name is as recognizable, primarily because of New York City. It is the number one destination for foreign visitors and is known globally as the site of the United Nations.
With a new governor taking office, the state’s development efforts build upon current strengths and promote cutting-edge industries.
Diversifying the NYC Economy
New York City is essential for the economic health of the entire state. Under the direction of Mayor Michael Bloomberg, New York City is clearly not just relying on the financial services sector for economic growth.
“Diversifying the economy has been a central goal of the Bloomberg administration’s policies,” says Robert C. Lieber, president of the New York City Economic Development Corporation. “By investing in strategic growth industries, including bioscience, the city has taken significant steps to that end. ...Of the 150,000 jobs created in the past four years, more than 80 percent are in sectors other than financial services.”
An example is the Alexandria Center for Science and Technology at the East River Science Park, a 1.1 million square foot center for commercial bioscience on Manhattan’s East Side.
“As we look to diversify our economy and expand new sectors, it’s important to note that commercial bioscience is one of New York’s major growth industries, as evidenced by Alexandria’s commitment of $700 million to this innovative project,” Bloomberg said at the recent groundbreaking. “East River Science Park will be a premier research and development center that will enable researchers at our great hospitals and universities to turn their ideas into commercially viable products.”
But that does not mean that the city is ignoring the financial services sector and the corporate headquarters that dot the city’s skyline. Dean Shapiro, executive managing director of CB Richard Ellis’ New York City office, says there continues to be strong demand for office space in the popular mid-Manhattan area. Other areas of Manhattan are doing quite well, too. An example is the Goldman Sachs headquarters being built downtown.
Now under construction across from the World Trade Center site, the world headquarters of Goldman Sachs will be housed in a 43-story building in Battery Park City. Initial occupancy is scheduled for 2009.
In addition, the Freedom Tower, the centerpiece of the new World Trade Center complex, is now under construction with the opening scheduled for 2011.
Yonit Golub, a spokesperson for the New York City Economic Development Corporation, says that development is found in all five New York City boroughs. She explains that Lower Manhattan has grown quickly—the vacancy rate has fallen from over 12% in 2003 to under 6.8% in 2007. Commercial business districts, including Long Island City and Jamaica in Queens, Harlem in Upper Manhattan and Downtown Brooklyn are attracting high-density commercial buildings near transportation hubs. Another significant real estate opportunity comes with the redevelopment of the Hudson Yards on the far west side of Manhattan. Many new buildings are environmentally sensitive, too.
New York City is also known as a major design and creativity center, and in lower Manhattan, near the New York University campus, online design firms have become a growing economic force.
