The Jehovah's Witnesses Watchtower Building is being converted into an office complex.
Developers racing to turn Brooklyn into a thriving technology office market may be finding Manhattan a less-fruitful target for poaching tenants.
Leasing in Manhattan by tech, advertising, media and information tenants—known to real estate brokers by the acronym TAMI—fell in the second quarter to the lowest level in more than three years, according to Cushman & Wakefield. Such firms added just 1.21 million square feet in the borough. That's a 43% drop from the space leased in the first quarter.
Demand is cooling as development across the East River surges, with 9.6 million square feet of Brooklyn offices slated for completion by the end of 2020. Developers and investors behind projects including the former Domino Sugar plant, the Watchtower Building and the retired Schlitz Brewery are aiming to draw TAMI tenants, and Brooklyn's emergence as one of the U.S.'s top tech centers is threatened unless there's a reversal of the slowdown.
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