For a place widely regarded as being the vanguard of trendsetting and tastemaking, New York City, so far, has been uncharacteristically behind the times on what is undeniably the biggest economic opportunity of late: technology.
Fortunately, Michael Bloomberg decided to do something about it.
Still mayor at the time, Bloomberg offered up a lease on a large plot of land on Roosevelt Island, as well as significant amount of funding, to the bidder who could come up with the most appealing proposal for a technology focused university program in New York City.
The competition -- whose applicants included elite schools like Stanford, Columbia, and New York's City College -- ended in 2011 when a joint bid from Cornell University and Israel's Technion Institute of Technology successfully claimed the prize.
Named Cornell Tech, the new state of the art graduate school blends IT, business, and media in a curriculum specifically engineered to foster entrepreneurship and innovation. Construction on a prospective campus that includes energy self sufficient buildings, sprawling outdoor parks, and even a cafe, will break ground in January.
The New Yorker has already dubbed Roosevelt Island "Silicon Island", and many hope that its presence will attract the talent that will propel the New York tech industry into the company of cities like San Francisco.
For real estate professionals, however, the real story lies in the impact this sort of growth could have on the demand for property in the area's surrounding neighborhoods. Considering the school will enroll as many as 2000 students in addition to a full time staff of at least 300, there will be an immediate influence on the value of property on the island, as well in the boroughs whose coast lines run near by as they search for housing. Some -- such as Cornell's president David Skorton -- are already predicting the creation of an "F-train tech corridor" that will run through Brooklyn, Manhattan and end in Queens at the Roosevelt Island stop.
Not to mention, given the precedent set by San Francisco, in the long run, the school could potentially play an even larger role in shaping the city's real estate market.
If all goes according to plan, Cornell Tech graduates and others looking to establish a business presence in the city will likely consider renting office space within commuting distance of the campus in order to tap into the talent the school produces. Furthermore, in light of the sticker prices in Manhattan, the Queens real estate market will look mighty appealing to a cash-strapped startup. In turn, investors and salespeople would be wise to turn their attention to office and residential properties in Astoria, Steinway, and Long Island City while the demand is still emerging.
