If you are looking for office space in New York City there are a lot of things you will need to consider. Leasing Office Space In New York City can be very challenging if you unfamiliar with the idiosyncrasies of the office market there. New York is a very popular office space market and the suppliers of office space know it. The office space market in New York City is divided up into several different submarkets that are as large or larger than many other cities office space markets. When you shop for office space you have to be aware of subtleties of these differing submarkets that could end up adding to your occupancy costs. Many organizations looking for office space in New York rely on professional services, like OfficeFinder, to help them negotiate through the complex market. Without an expert on your side, plan on spending more time finding space and count on making a few mistakes along the way that could end up costing you more than you expected to pay for your office space.
First off, it is important to understand that rentable office space is usually not the same as actual usable office space. You may need 3,000 square feet of office space and find a location where that amount of rentable space can be taken for a reasonable cost. What you will find is that you can actually use only 2,500 square feet of that space. The rest of the space may be “loss factor” or “load factor” space, consisting of the lobby and common areas of the building. Knowing the norm for the load factor in leasing office space in New York City can make a significant difference in what you are really paying.
Another consideration you will want to look out for is how operating expenses are passed through to you. Usually they are either over a certain amount or over an amount that occurred in what is known as a base year. Surprising expenses can slip into the calculations of cost. That is where the services of a good office tenant rep come in. They are familiar with which expenses are typically passed through and the determination of what base year should be used to calculate your additional rent. Once again, knowing the norm for how these expenses are passed through can make a significant difference in your total cost of occupancy.
These are just a couple of the considerations that need to be taken into account to make sure that you get the best deal possible when leasing office space in New York City. Taking all of them into account is where a good office tenant rep, who really knows the New York City office leasing market, will really make a difference.
There are some options as to the kind of office space to consider. There may be a special option that would meet your needs perfectly.
- Conventional office space is the straight-forward kind of rental or lease arrangement by which the tenant is responsible for all services. In New York, and most major centers, conventional office space arrangements are expensive, some in Manhattan over $100 per square foot, and inflexible and therefor may not be the best choice for young companies.
- Executive suites and managed office spaces are office spaces where common services are provided for the tenant. Usually several firms are located in office suites in the same area or floor.
- Coworking space is designed around individuals who are independent, but have some mutual business interests which will hopefully create a synergy in the workplace.
- Incubator office space is also available for young companies on a less than permanent basis.
We can help navigate the maze of options and pitfalls in leasing office space in New York City. Please contact us to find out more.