Renting office space anywhere can be complicated, but finding a NYC office rental comes with its own unique set of challenges. NYC’s expensive rental market and savvy landlords require tenants to research and employ every resource to find their ideal location. But have no fear. We are providing you with a quick beginner’s guide to finding a NYC office rental.
First, access your needs. How much space will you need? You should consider your number of employees, how many private offices you’d like, conference rooms, bathrooms, etc. Don’t forget to look at your business plan and think about anticipated growth or downsizing. If your budget allows, you can hire an architect to help with your space plan. Think about the small details that would make your office run smoother and keep a checklist, so you can take notes when hunting.
Also, think about your budget. Don’t be tempted to get into a larger or fancier space than you can afford at the risk of your cash reserves. Remember that real estate is one of the most expensive things in a business’s budget. You will want to consider the cost of rent, of the build out, and of moving.
Think about location. NYC has certain sections that cater to different businesses. Do you want to be where all the tech companies are, in the garment district, or in a neighborhood known for start-ups? If you move too far from your current location, you may lose employees who find themselves frustrated with a commute. Think about subway access and parking for your employees and clients.
Now its time to hire a tenant’s agent, who are paid a percentage by the landlord, but are working for you. They are experienced professionals who can show you around and give the lowdown on certain office space. They will come in handy when it comes time to negotiate with your new landlord, but keep in mind they are working on commission and when they negotiate your contract down they lose money.
When hunting for your NYC office space, you should look at a large number of office spaces in your target neighborhood. Compare and contrast their features and contracts. Listen carefully to the landlords, the super, the neighbors, the porter, and anyone who has a word to say about the building.
Once you have found some great spaces, it’s time to submit offers. Yes, that was plural. Competition is a good thing in when finding a NYC office rental. Hire a lawyer (NYC landlords are far too savvy for you to consider a legal deal without one) and begin negotiations. Some things to negotiate might be reduced rent, free rent for the first few months, your lease term, subletting terms, security deposit, utilities, termination options, and build-out expenses. Your broker will be able to give you some guidance on how soft the market it, and what others are negotiating. When your contract is ready, have your lawyer and broker give it a second (and third) look, take a deep breath, and sign.
Now it’s time for the fun stuff. You can begin to plan and build out your dream NYC office rental, move in, and prosper.