Shopify Leases 36K SF of Office Space in the Meatpacking District, NYC

Shopify Inc., the e-commerce giant based in Ottawa, has made a strategic move to bolster its New York City presence by securing a lease for offices on the far west side of Manhattan. This aligns with a growing trend among tech and finance companies, as they continue to expand their footprint in this bustling area of the city.

What we know about decision Shopify’s new quarters: The e-commerce company has leased nearly 36,000 square feet (equivalent to 3,300 square meters) of prime office space at 85 10th Ave., a property owned by Related Cos. and Vornado Realty Trust. 

Location, location, location: This 11-story building is conveniently located near some iconic landmarks of the area, including Chelsea Market and the High Line, and already houses a prestigious tenant roster, which includes Alphabet Inc.'s Google and Clear, a screening company.

Finance-oriented details: The specifics of Shopify's lease indicate that the company will be occupying a portion of the eighth floor. While exact financial details were not disclosed, it is believed that the rent Shopify is paying is in excess of $100 per square foot. This figure notably surpasses the Manhattan third-quarter average, which stood at $75.28 per square foot, according to data from Colliers.

What this means for Shopify and NYC’s offices: The firm's move into this newly acquired office space in Manhattan is significant, albeit relatively small when compared to the massive lease deals often witnessed in the tech industry. However, it's important to note that Shopify is among the select few major tech tenants that have signed leases in Manhattan this year.

This comes at a time when some prominent tech firms, despite experiencing rapid growth in previous years, have adopted a more conservative approach, often driven by cost-cutting measures that have impacted both jobs and real estate. A notable example is Meta Platforms Inc., which relinquished a portion of its office space at Hudson Yards last year in an effort to trim expenses.

The decision of Shopify to invest in this new office space signifies its commitment to the Manhattan tech scene, which remains a hub for innovation and collaboration.