The finest commercial properties in Manhattan are Class A office buildings. Public corporations, large law firms and financial services companies tend to gravitate to these buildings as tenants who are willing and able to pay higher costs. Rent for Class A office space in NY includes the amenities and prestige that these buildings offer.
Certain Class A buildings also list small spaces that are less than 1,000 square feet, so it is possible to relocate to these upscale building even if you are not a Fortune 500 company in the market for a full floor.
Class A Office Space in NY Provides Prestige
New York City tenants who sign leases for office space in Class A buildings enjoy 24/7 attended lobbies, enhanced building security, air conditioned common areas, and on-site property management. Class A buildings are in the best locations, are often landmark structures, and are extremely well-maintained. Well known examples of these first rate commercial office structures are the Chrysler Building, the Empire State Building, the GM Building, the Graybar Building, 14 Wall Street (Former Bankers Trust Building), 7 World Trade Center and 61 Broadway.
The Cost of Class A Office Space in NY
The cost of Class A office space in NY ranges from $35 per square foot to $140 per square foot. Low-end pricing for Class A office space exists in Downtown Manhattan, and asking rents for desirable properties tend to increase as you travel north toward Midtown Manhattan. In the Grand Central Station neighborhood, asking rents range from $45 to$85 per square foot for Class A office space, and increase as you travel north of 50th Street into the Plaza District where the IBM Building, the GM Building and the Lever House are located.
The Best Deals on Class A Office Space in NY
So where can a business negotiate favorable lease terms on a decent space in a quality Class A building? Are there really any Manhattan Class A office space listings on the market for less than $40 per square foot? Inexpensive Class A spaces are almost without exception in Downtown Manhattan’s Financial District, World Trade Center, City Hall and Insurance District. Asking rents range from about $35 to $85 per a square foot. But there are some very desirable Class A buildings on Broadway and Wall Street, where tenants with the assistance of their broker can probably still negotiate a deal in the $33 to $38 per square foot range. Getting these rates often requires the benefit of government incentive programs.
REIPs Help Reduce Your Net Effective Rent
Lower Manhattan has the added advantage of having government real estate incentive programs that further reduce the cost of leasing commercial office space. Most Downtown Manhattan landlords participate in these incentive programs. The Community Revitalization Program alone can save businesses as much as $10 per square foot on commercial rent over their lease term. The REAP program potentially offers even greater savings for tenants who are relocating to Lower Manhattan from outside New York City. There are also government incentive programs that reduce the tenant’s energy costs by approximately 15 percent.
With commercial office space rents on an upward trajectory throughout New York City, Lower Manhattan offers an opportunity to save money on commercial rent while moving into a great building. Call Alan Rosinsky, Principal Broker at Metro Manhattan Office Space, at 212-447-5403 for assistance in finding low-cost Class A office space in NYC.