NEW YORK CITY—Identified recently as the three dominant sectors in Manhattan office occupancy during the third quarter, technology, legal and financial firms are as different in their space needs as they are in their core businesses.

The first concern, of course, is location. But different motivations prompt very different strategies.

Says Ben Friedland, EVP, CBRE, “As an increasing percentage of financial firms' principals relocate their residences Downtown, the desire for nearby office space in these areas continues to grow. That said, Park/Fifth/Madison remains the epicenter for boutique financial service firms.”

The technology sector “has evolved to the point where firms overall are considering wider geographic parameters,” says EVP Sacha Zarba. “However, location preferences remain specific depending on where they are in a company's life cycle. Start-ups tend to prefer the Flatiron, Union Square and SoHo submarkets because they have the highest concentration of pure technology firms and start-ups are acutely focused on recruitment.

Meanwhile, he continues, “Companies in growth or mature phases tend to favor the Madison Square Park/Park Ave. South, Chelsea and Hudson Square submarkets. Brooklyn continues to evolve as a viable and preferred market for companies of all sizes.”

When it comes to law firms, says Ken Rapp, vice chairman, there's a simple way to decipher what they seek. “Under 100,OOO square feet, they're open to various space. Firms in the 250,000-square-foot range prefer to be in Midtown while larger firms of 500,000 square feet and up are driven by where the space is and by new construction.”

The nature of the workplace efficiency and space usage in these sectors also is very different.

“An increasingly important space requirement for boutique financial firms is 'visual control,'—i.e. the ability for the leading principal to overlook the entire workforce,” says Friedland. “New construction that features virtually column-free interiors is sought after for this reason.”

He notes, “It's about operational excellence. Financial firms want a place that fosters collaboration. And larger firms, want to be as efficient. as possible; the banks all compare metrics about the amount of space they have per employee.:

Meanwhile, law firms are bucking with tradition, adds Ken Rapp, vice chairman, “Law firms are transitioning to a more collaborative environment and are using space more efficiently. Better use of interior and amenity spaces has led law firms to examine buildings with larger floor plates.”

In addition, Rapp states, “These firms now use fewer secretaries—and they do call them secretaries— so empty cubicles are being used to rebuild offices and become more efficient.”

And when it comes to technology firms, says Zarba, “They're still known for their emphasis on collaboration and innovation through 'accidental collisions' in lounge/communal areas that evoke a sense of community and creative energy.”

More specifically, he adds, “For a start up, collaboration is key. When they begin to grow, the design of the office is more important.”

Environment of an office also is key, the CBRE executives note.

“When a company is a start-up, the space screams that, it's suited to recruitment. As the firm goes, branding becomes more important, tenants put more money into the space and sign longer leases.”

Law firms tend to create customized offices, says Rapp. “They spend a lot on build out. They tend to locate attorneys by practice groups but they're trying to move to more collaboration and are putting different types of people together to create more of that.”

Financial firms devote their attention to an office's aesthetic, says Friedland. “They look for spots where they can- display great success with great light, great air, great art and meticiulous toffice space. If they want to attract the best talent, they want space which represents that status.”

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.