Economic Research & Analysis

July 2015 Economic Snapshot

Inside this Volume

Private employment in New York City rose by 21,600 between May and June 2015.
The unemployment rate fell to 6.1% between May and June 2015.
The Manhattan Class A office vacancy rate was 8.3% in June 2015, while the average asking rent was $77 PSF.
Hotel occupancy was 93.3% in May 2015, down from 94.1% in May 2014.
Passengers in New York City area airports totaled 10.4 million in April 2015, up 5.5% from April 2014.

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#63 TAMI Sector in New York City

TAMI—an acronym for Technology, Advertising, Media, and Information—is a term used to describe fast growing, innovative industries. The TAMI sector currently employs 330,600 people in New York City.

Employment

  • Private sector jobs in New York City rose by 21,600 in June 2015 after a gain of 16,200 jobs in May 2015.
  • Government jobs in the city rose by 400, resulting in a net overall increase of 22,000 jobs between May and June 2015.
  • Since June 2014, private sector employment has risen by 111,300 jobs or 3.1%.
  • New York City’s unemployment rate was 6.1% in June 2015, down from 6.4% one month prior.

The TAMI Sector in New York City - Technology, Advertising, Media, and Information

  • TAMI (an acronym for Technology, Advertising, Media, and Information) is a term used to describe fast growing, innovative industries. The TAMI sector currently employs 330,600 people in New York City.

  • Employment in the TAMI sector totaled 330,550 in 2000, but fell to a low of 260,940 in 2003. From 2003 to 2014, the TAMI employee population rose 26.7% to 330,600.
  • TAMI jobs pay well above average and salaries are rising. After adjusting for inflation the average personal annual wage of TAMI workers in New York City rose 7% from 2003 to $125,290 in 2014.
  • Amongst TAMI workers, those working in Research and Development in Biotechnology earned the highest annual wages ($274,590), followed by Computer Facilities Management Services ($145,080) and Custom Computer Programming Services ($137,850) in 2014. (Excluding Oil and Gas Extraction).

  • While employment continues to rise in the TAMI sector overall, the Computer Facilities Management Services subsector saw employment fall by 83.1% from 2000 to 2013, dropping from a high of 5,405 employees in 2000. However, despite employment drops, real wages have risen to $145,080 in 2014, an increase of 15.7% from 2002.
  • Wages in the Research and Development in the Biotechnology sector also increased 180.7% in the past 7 years, after adjusting for inflation, rising to $274,590 in 2014.
  • In the last 15 years, the advertising industry has bounced back from two financial crises in New York City. In 2011, it reached 57,000 workers, the same as the size of the industry in 2000. Since then, the sector employment has grown to roughly 67,000. In addition, the average annual wages have risen 38% since the year 2000, from $90,000 then, to $124,000 in 2014.

  • Employment in the information and media sectors rose 13.8% between 2004 and 2014. Total payroll increased 30.7% over the period, suggesting strong wage growth.

  • TAMI tenants typically seek smaller spaces than financial services or traditional professional services. 75.0% of leasing transactions conducted by tech firms between Jan 2015 and June 2015 were for 25,000 sq ft of space or less.

Real Estate and Construction

Real Estate

  • In June 2015, the Manhattan Class A direct vacancy rate fell to 8.3% from 8.6% one month prior, while the average rental rate held steady at $77 PSF.
  • Direct vacancy rates fell in all three Manhattan sub-markets – by 0.3 percentage points in Midtown and Downtown and by 0.2 percentage points in Midtown South. Direct rental rates for Midtown South rose $5/SF, while those for Downtown increased by $1/SF between May and June 2015.
  • The Manhattan sublease vacancy rate fell slightly to 1.3% in June 2015, while the rental rate remained at $61/SF.

Construction

For the twelve months ending June 2015: 

  • The number of building projects (including new, additions, and alterations) that started construction in New York City remained virtually unchanged relative to the twelve month period ending June 2014. Planned space for such projects, however, was 77.5% higher than the same period in 2014, suggesting that building projects have become larger. The value associated with these projects was up 85.4% over the period.
  • 3,270 residential building projects began construction, a 3.0% increase from the twelve months ending in June 2014. These starts contained 44,260 units, an increase of 75.7% from last year.

Transit, Travel and Tourism

Transit Ridership

  • Total ridership on MTA subways, trains, and buses in May 2015 was 234.2 million, a decrease of 2.0% from May 2014.
  • Subway ridership in May 2015 was 151.4 million, down 1.0% from May 2014.

Source: Metropolitan Transit Authority

Air Traffic

  • In April 2015, 10.4 million passengers flew into and out of the region's airports, an increase of 5.5% from April 2014.
  • Domestic air carriers accounted for 6.8 million passengers, a 7.7% increase from April 2014.
  • 3.5 million passengers traveled with international air carriers in April 2015, a 1.5% increase from April 2014.

Source: Port Authority of New York and New Jersey

Broadway Ticket Sales

  • Total Broadway attendance was approximately 1,052,770 during the four weeks ending June 28, 2015, down 6.6% from the same period last year.
  • Broadway revenues during this period were about $112.9 million, down 4.1% from last year.

Note: Gross revenue and attendance figures include all shows playing on Broadway during the specified period.
Source: The Broadway League

Hotel Occupancy

  • In May 2015, the average daily hotel room rate was $320, a 1.2% decrease from May 2014.
  • Hotel occupancy was 93.3% in May 2015, down from 94.1% in May 2014.
  • The average daily hotel room rate decreased the most in hotels charging $245 or less per night.

Source: PFK Consulting