Bullish In the Big Apple

Incentives Abound for New York City-Based Businesses

By DAVID CHARTOCK
September/October 2005

http://www.execdecision.com/ArticleDetail/

There are many good points and bad points about New York City. One point is clear—Manhattan wants your business to be based somewhere in its five boroughs.

According to Mayor Michael R. Bloomberg, "New York City is in the midst of a spectacular resurgence, so now is the perfect time to consider New York as a location for growing your business."

"New York City has a distinct, competitive advantage as a business headquarters location, based on the sheer size and diversity of its economy. New York’s economic output—over $400 billion annually—is about the size of Mexico’s,” says Kathryn S. Wylde, president and chief executive officer of the Partnership for New York City.

According to Wylde, more Fortune 500 headquarters —43 to be exact—are located in New York City than in any other U.S. city. Equally important, the New York metropolitan region is home to the nation’s most productive labor force, comprised of some 20 million people who speak 198 languages, with far more post-graduate degrees, noble laureates and patents than any other American city, she adds.

“Finally, New York is a global center of multiple industries—finance, media advertising, fashion and retail—as well as the nation’s cultural capital. Three international airports provide excellent access to this city along with working ports and rail. On the academic side, New York has an unparalleled concentration of world-class universities and top medical, science and research institutions,” Wylde points out.

Barbara Corcoran, founder and chairman of residential real estate brokerage The Corcoran Group in New York City, agrees. “The power of the media and New York being the financial capital of the world makes it a sexy place from which to run a business.

“New York City also offers a world of creative genius, which can be tapped by corporations,” Corcoran says.

“On the down side, New York City is an expensive city. It has the highest cost per square foot for office space than any other city,” she says, adding there is a shortage of office space.

Nevertheless, Stephen Siegel, chairman, global brokerage, C.B. Richard Ellis of New York City, says he is “bullish on the city’s economy, which has recovered amazingly well since September 11, 2001.”

In fact, Siegel says, businesses are expanding, although most of them are foreign-based companies