Why Tech Firms Flock to Expensive Cities



This is Hudson Yards.

Late in 2019, Facebook completed a lease for over 1.5 million square feet of space across three buildings in the area.

Amazon also has an office down the street.

And if you go further down the Hudson River, you'll find a cluster of buildings leased or owned by Google.

It seems like everyone in tech wants a piece of New York City's West Side.

- There's a reason that most of the major big tech brand platforms are based in a few places.

They wanna be near each other and they wanna be near some of the same resources.

- Mark Muro is a fellow at the Brookings Institution, a Washington DC think tank.

He and other economists call this clustering agglomeration.

- Agglomeration is the tendency of economic activity to gather, or cluster, or clump together.