Renting office space in NYC is tricky. Every facet of Big Apple’s day to day life is extremely competitive. No matter what you’re trying to achieve you need to bring your A game! Your every move will count towards the end-result, so be careful every step of the way. Movers NYC can attest to the struggles of their customers trying to find office space in the most expensive real estate market. With best NYC moving services, recognize the importance of this topic, hence we decided to offer our two cents on the matter.
Types of office space in NYC
First things first, let’s look into the types of office space in NYC to try and understand what is out there. You need to understand how the market branches out offering different options for different types of businesses. The most basic commercial space in NYC is the “Traditional Lease” where you lease directly from the landlord. General requirements for this type of lease are:
- Lease term of 3 years or greater
- Offices greater than 4 people
- 1000 to 100,000 square feet or greater
“Sublet” is a case where a tenant assumes the responsibility of the direct lease from the current tenant. Another popular way of renting office space in NYC is the “Shared Space”. This includes renting a single desk, office or group of offices. It can also mean you will share reception, conference rooms, copy, fax, and pantry. This is a common practice for attorneys, accountants and other professionals with similar commercial space needs.
Other types of office space available in NYC are:
- Executive suites (ideal for new small businesses)
- Medical office space
- Law office space
- Showroom space
There are three categories to rate the quality of rentals. These are Office Space Class A, B, and C, class A being to the top, most exclusive and prestigious to class C, which offers the bare minimum. But don’t underestimate the class C office space which is very sought after in certain branches of business, such as marketing agencies and high tech companies.
Give your self plenty of time
Timing is everything in renting office space in NYC. Hence give your self plenty of it! For people who are looking how to start new business in NYC this is even more important. The ideal time frame would be 6 to 9 months prior to moving in. This will give you an edge in finding a perfect solution for your requirements. It will also be good for your health, as finding office space in a timely manner reduces stress. Think about all the things you will have to do and how much time they require:
- Finding the actual space
- Negotiating a good deal
- Obtaining permits
- Hiring the best moving services in NYC
- Changing emails, internet, phones
- Purchasing new equipment or upgrading furniture
- Figuring out insurance
As you see, time is of great importance and it will allow you to perfectly execute anything you had in mind. This is also the number one rule of any relocation and the first thing on every ultimate moving checklist-to plan ahead! If you are currently renting, you need that lead time to secure a new lease. You don’t want to pay that “holdover” fee just because you didn’t vacate the property in time.
Renting office space in NYC requires professional help
No matter how skillful you think you are, NYC is very competitive and hiring professional help will give you that much needed extra edge. The great thing about broker fees for commercial leases is that they are paid by the landlord. This leaves you free to hire a broker at no cost to your business. Get an experienced one to assist you in finding your space and negotiating lease terms. The higher the rent is, the higher the commission, so make sure to be present during negotiations. Make sure that your broker doesn’t forget what your bottom line is.
The broker often organizes a simple term sheet with the landlord. This is where your attorney comes in to play. Your lawyer should review the lease agreement in detail and make sure everything is by the book.
Better to go long-term
Many business owners would think short-term leases are the best option. No one wants to be tied to a contract and committed. Why would you, when you don’t even know which trajectory your business will take next year. Well think again, maybe the long term is a better way to do it. Why? Because it gives you perks. Landlords prefer long-term leases and if they sense you might be it, you will have more room to bargain. If you are willing to commit to a long-term lease think about the things you can possibly get during negotiation:
- lower monthly rent
- provide additional renovation
- ask for several months of free rent
- negotiate provisions for early termination
Tours and Offers
Once you start touring potential spaces with your broker bring a checklist you previously made. This list should contain all the requirements you expect your new office space will fulfill. The purpose here is to have a reminder of what you need plus to be able to edit the list right there on the spot. You will be surprised to find out that there are so many other things you forgot to put on there. This is why it’s handy to update the list right away so you stay on top of your game and don’t forget anything.
Another thing, don’t be shy about making an offer! Renting office space in NYC is as cutthroat as any other real estate market here, and you need to act quickly. Even if space isn’t 100% what you wanted, making an offer will put you ahead of everyone else. The best part is-it’s a non-binding step in the leasing process.