Finding office space to rent in New York City can be a lengthy and very expensive process.
Known around the globe as a leading center of business and finance, it’s no surprise that certain prime New York neighborhoods attract the highest office rental prices in the country.
Business owners typically find offices difficult to acquire. Meanwhile, the time between finding an office, signing the papers and moving can feel extremely drawn out, sometimes taking more than six months.
In the first quarter of 2013, a report by NYC rental firm Cushman and Wakefield concluded Lower Manhattan office vacancies were at their lowest levels in five years. This seems to show demand is creeping back up and is likely a result of companies finally starting to operate more normally, as the global economic situation has gradually improved. (In recent years, the crisis saw many companies delay key decisions such as taking on new leases, as they waiting for the situation to stabilize.)
New firms however,– mainly tech companies, and creative agencies – are finding they are being priced out of areas such as the expensive midtown south area – which includes such prestigious areas such as Chelsea and the East Village as well as the Flatiron District.
Only last year, brokerage firm Studley Inc. claimed that NYC office availability was at a 19 year high, while Bloomberg noted almost one in every five square feet of office space downtown was empty.
At the same time, the developer of the 4 World Trade Center said there was still 1 million of 2.3 million square feet of office space available at the new skyscraper while another 3.3 million square feet was about to become available.
Still, rental prices refused to budge, with a spot in such a location costing around $55-75 per square foot. Media commentators and industry experts speculated as to at what stage the level of vacancies would see rents forced down. Much higher than comparable office space in Wilmington or Office Space in Denver. Two smaller markets that offer significantly lower pricing on Offices and Virtual Offices.
Now it seems as if things are back on the up – yet either way, these high-end premises are out of the question, budget-wise for most businesses, including SME’s and start-ups.