We live in a work-from-anywhere culture. We’re mobile. So if you’re going to ask people to work somewhere it has to have an energy, an excitement.
Down under the Manhattan Bridge overpass, something big is happening. Twenty years ago this community between the Brooklyn and Manhattan Bridge was old industry.
Developer David Walentas bought the entire community with the hope of turning it in to an upscale residential and commercial center. He did. It’s now the fourth-richest community in all of New York City.
What’s So Great About DUMBO?
In his latest album 4:44, Jay-Z regrets not being there: “I could’ve bought a place in Dumbo before it was Dumbo / For like two million / That same building today is worth 25 million / Guess how I’m feeling? Dumbo.”
With a 10-minute walk or ride over the bridge to Manhattan and great views, the potential was always there. But this was before Brooklyn was cool again. So it started slowly. The community was first known for its art galleries and creative community. That energy then transferred to startups and eventually to tech.
West Elm and Etsy started in DUMBO and are still there. Vice Media is, too. Promising tech startups like Agrilyst (which won TechCrunch Disrupt in 2015) and Lingo Live whose client list includes Twitter and Google have led a movement to create a new “Silicon Alley.”
Silicon Valley grew because it had great access to capital and talented developers could move from one great tech company to another, to startups where they could take a percentage of ownership. DUMBO is creating this same energy in tech and its proximity to Manhattan money makes it a viable alternative.
How does this area grow further? By attracting well-established companies and agencies in Manhattan to leave and come to DUMBO. Rolling Stone considered it but ultimately didn’t make the move.
Laundry Service and Cycle did. Founded in 2012 by CEO Jason Stein, Laundry Service is a full-service marketing agency that operates at the convergence of media and advertising. It offers high quality creative, production, and distribution at scale, all while providing white glove agency services to clients like Jordan Brand, LG, and Beats by Dre. Just like The Defiant Ones they represent, they are charting a different path.
“There’s an inspiring energy in DUMBO, driven by Brooklyn’s hungry, diverse people. This reflects our values and culture. It’s a natural home for us,” said Stein.
Millennials Don’t Want or Need a Corner Office
“In designing the space, my goal was to build a collaborative, comfortable, and productive environment for our 180-plus NYC employees–something as premium and authentic as the content we create,” said Alyson Warshaw, Laundry Service’s chief creative officer. “We also put a lot of thought into how we could best emphasize our incredible view, which includes both the Brooklyn and Manhattan bridges. The result is a really innovative and inspiring workspace.”
This should open the door for other big companies and agencies to move to an area. Someone always has to be first. Right now DUMBO is hot–even hotter than Dowisetrepla (the fictional neighborhood in How I Met Your Mother). It’s indicative of the attitude of a generation that values charting a new path over achieving old standards of excellence.
We talk about how Millennial habits are changing industries. They opt for delivery instead of chain restaurants. They don’t value a corner office. But it’s all part of a bigger whole. This generation is taking leadership roles and unlike the 1980’s their definition of success is internal, not external.
You see this in their choices. So when a major agency moves from Manhattan to under the Manhattan Bridge, for better views and a better fit for their culture, that will become the new normal rather than the exception.
Creating the Next DUMBO
So where will the next hot spot for entrepreneurship be? It starts with capital. The area will have to see considerable investment in real estate. Startups will need to know that there is easy access to investment for their businesses.
That’s the prerequisite. Many communities have that already to varying extents. The next step is recruitment.
Entrepreneurs gravitate to where the energy is, where they see people like them. Like Kevin Durant, Paul George or Carmelo Anthony, they want to play for a winner. The next big community will recruit startups either through tax incentives, access to large partner companies, or a strong community of developers.
Finally, patience is important. DUMBO took twenty years. Make incremental growth, create the atmosphere for homegrown star companies. All you need are two or three companies to succeed from a community to be able to brand it as a destination.
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.