“We're seeing rates in Midtown between the lower-30s to mid-40s for class B space,” he says. “On Madison and Fifth avenues the price will vary by 5-10% but on the side streets you can really find some bargains.” More specifically, he notes, “the large floorplates in the garment district may lend themselves to technology firm offices. Anywhere around the NoMad area is of interest; I call it a 'cultural gentrification.'”

Over in Midtown South, where there's still an epic squeeze, some tech firms are finding their way in. Two start-ups, Venmo and Taboola, signed leases in the first quarter. The former company, a social-mobile payment platform, will be moving to 159 W. 25^th St., taking nearly 7,500 square feet, while growing video platform Taboola leased 6,142 square feet at 44 W. 18^th.

The two companies' entrance into the market could pave the way for others, Zandieh contends. “The momentum is moving North, from Park Avenue South and west, up to the Chelsea mark. Companies that are more financially conscious are moving north and still having the same access to human capital.”

And some of the firms have a great deal of upside potential, he notes. “We have companies that pay $5,000 to $7000; these companies are scaling. If you're lean but you're growing, and these companies are growing on pace with their five-year plan, they're thinking about where they're going to be for the next few months and years,” he says. “Or, they may be planning to co-locate or sublease, but they could be hiring a ton of people to grow out that business.”

Meanwhile, the Downtown district has its own set of selling factors for the tech sector. The announcement of WeWork opening a 120,000-square-foot campus at 222 Broadway is enticing smaller firms to come to Lower Manhattan, the report states. “It's a cool, creative environment.”

Shared work spaces inspires collaboration, which makes others want to be in the area, Zandieh says. “If you work remotely, you can bounce ideas off a third party and get ideas or new perspective. People may walk into a shared office space facility and think 'people get work done here?' Yes people are standing around talking,” he admits. “But it's creative and collaborative.”