New York City Economy
New York City is a global hub of international business and commerce and is one of three "command centers" for the world economy (along with London and Tokyo). The city is a major center for finance, insurance, real estate, media and the arts in the United States. The New York metropolitan area had an estimated gross metropolitan product of $952.6 billion in 2005, the largest regional economy in the United States. The city’s economy accounts for the majority of the economic activity in the states of New York and New Jersey. Many major corporations are headquartered in New York City, including 44 Fortune 500 companies. New York is also unique among American cities for its large number of foreign corporations. One out of ten private sector jobs in the city is with a foreign company.
New York City is home to some of the nations—and the world’s—most valuable real estate. 450 Park Avenue was sold on July 2, 2007 for $510 million, about $1,589 per square foot ($17,104/m²), breaking the barely month-old record for an American office building of $1,476 per square foot ($15,887/m²) set in the June 2007 sale of 660 Madison Avenue.
Midtown Manhattan is the largest central business district in the United States and is home to the highest concentration of the city’s skyscrapers. Lower Manhattan is the third largest central business district in the United States, and is home to The New York Stock Exchange, located on Wall Street, and the NASDAQ, representing the world’s first and second largest stock exchanges, respectively, when measured by average daily trading volume and overall market capitalization. Financial services account for more than 35% of the city’s employment income. Real estate is a major force in the city’s economy, as the total value of all New York City property was $802.4 billion in 2006. The Time Warner Center is the property with the highest-listed market value in the city, at $1.1 billion in 2006.
The city’s television and film industry is the second largest in the country after Hollywood. Creative industries such as new media, advertising, fashion, design and architecture account for a growing share of employment, with New York City possessing a strong competitive advantage in these industries. High-tech industries like bioscience, software development, game design, and internet services are also growing, bolstered by the city’s position at the terminus of several transatlantic fiber optic trunk lines. Other important sectors include medical research and technology, non-profit institutions, and universities.
Manufacturing accounts for a large but declining share of employment. Garments, chemicals, metal products, processed foods, and furniture are some of the principal products. The food-processing industry is the most stable major manufacturing sector in the city. Food making is a $5 billion industry that employs more than 19,000 residents, many of them immigrants who speak little English. Chocolate is New York City’s leading specialty-food export, with $234 million worth of exports each year.
