A health-care technology company just signed a lease at 96 Spring St. Peter J. Smith for The Wall Street Journal

Flatiron Health Relocates
Offices From Downtown

Flatiron Health Inc. is relocating its headquarters downtown to a much larger space in SoHo to accommodate a wave of recent hires, the firm's broker said.

The health-care technology company signed a lease for 15,000 square feet on the top two floors of the 8-story building at 96 Spring St., according to Savills Studley, the real-estate firm representing Flatiron Health. The new space is five times the size of Flatiron Health's headquarters at 291 Broadway, at Reade Street.

Savills Studley had a team of three working on Flatiron Health's behalf: Zev J. Holzman, corporate managing director; Paul Revson, executive managing director; and associate Ryan Rafter. Midwood Investment & Development owns the Spring Street property and was represented by Gus Field, vice chairman of Cushman & Wakefield Inc.

Flatiron Health, which makes software that aggregates and organizes cancer data, is expected to relocate immediately.

"Flatiron has been growing at a rapid pace and had a desire to relocate its headquarters immediately to a space that was in a vibrant, energetic neighborhood," Mr. Holzman said.

—Keiko Morris

u Manhattan
Midtown Takes Top Spot
For Tech Leasing in June

Midtown South is usually the place where technology companies set up shop or move to, but Midtown took first place in June, according to the Tech Monthly report from JLL, a real-estate services company.

Ten of the 18 leases signed in June were for offices in Midtown, compared with four for Midtown South and four for downtown, the report said.

As these companies grow, they are migrating beyond Midtown South in search of larger contiguous spaces, said Jim Wenk, JLL executive vice president. The market of early- to mid-stage technology companies searching for 10,000 to 30,000 square feet has been "white hot," he said.

"Most of those companies tend to focus on the Flatiron District," Mr. Wenk said. "But they have been migrating between the Times Square and Herald Square area on Broadway and, of course, to SoHo. That sector in the market continues to be extremely active."

More leases were signed in June than in May, when 11 transactions were made. However, the leases in May totaled roughly 500,000 more square feet than the leases in June—839,732 versus 338,781. Several large leases accounted for the May number; only one transaction in June was for more than 50,000 square feet.

The dip is an anomaly, Mr. Wenk said. Larger leases, ranging from 100,000 to 200,000 square feet, are expected to close in the next few months.

—Keiko Morris

u Brooklyn
Three Neighborhoods Lead
Rise in Commercial Sales

The neighborhoods of Bedford-Stuyvesant, Bushwick and Crown Heights led a strong increase in Brooklyn commercial real-estate sales for the first half of the year, according to a report from real-estate firm TerraCRG.

The total amount of sales in the three neighborhoods reached $650 million from January through June, an 80% increase from the $361 million reported for the same period of 2013, the study said. The number of sales overall dropped slightly—to 301 from 316 in 2013.

The properties included multifamily apartments as well as retail, office and industrial sites.

"A big component of this growth is coming from appreciation," said Ofer Cohen, founder and president of TerraCRG.

Demographic shifts are contributing to rent increases in the three neighborhoods, Mr. Cohen said. Boroughwide, rents on average have increased from 7% to 10%; in areas such as Bushwick and Bedford-Stuyvesant, however, rents have grown as much as 10% to 12%, he said.

"Investors are coming into these areas because they are seeing a lot more growth in these areas," Mr. Cohen said.

Greater downtown Brooklyn notched the highest number of sales—122. The transactions, valued at $732 million, represented about a 44% increase over the figure for the first six months of last year.

Overall, Brooklyn recorded 980 transactions valued at more than $3 billion for the first half of the year. That represented a 9% rise in the number of deals and a 50% increase in total value from the same period in 2013.

—Keiko Morris