Few commercial real estate markets in the world rival that of New York City, where locating and leasing the right office space is paramount for a start-up business in NYC. From the Upper East Side to Battery Park, start-up entrepreneurs will find that there is intense, fast-moving competition for desirable Manhattan office space for rent.
Of course, the ideal office space for a web-based start-up is vastly different than the ideal location for a financial services provider. Tech start-ups often prefer office spaces with open floor plans, high ceilings, and concrete or wooden floors, properties more commonly found in SoHo, Tribeca, Chelsea, Union Square, the Flatiron District and the Garment District. Meanwhile, business owners in more conservative industries such as accounting, financial services and legal services typically prefer the more traditional office buildings found in Lower Manhattan, Grand Central Station, Times Square, Columbus Circle and other popular Manhattan business districts. Understanding the Manhattan landscape is critical.
Define your Real Estate Needs Before Looking for Space
In order to determine ideally sized office space, a start-up business in NYC should discuss with their real estate broker various aspects of their operation, including the size of their workforce, projected expansion plans that might require larger offices in the future, and the intended use of the space. Location is also important in how it impacts employees and potential clients. In any case, your real estate search will quickly show that Manhattan office space for rent is available for businesses of all sizes and types.
Understanding Rental Costs in Manhattan
Naturally, there are also the all-important cost considerations to take into account. Manhattan office space for rent typically runs anywhere from $30 to $120 per square foot annually, depending on amenities and services offered by the building and the desirability of the neighborhood in which it resides. In Midtown South, for example, demand for office space has fueled annual rental rates to climb upwards of $65 per square foot. The desire of Internet technology and media organizations to establish themselves in Manhattan has greatly impacted commercial office space rental rates throughout Manhattan.
Rental rates do vary throughout New York City, from premium locations in the Plaza District, Rockefeller Center, Columbus Circle and Times Square, to more affordable areas such as the Financial District, Chelsea and the Garment District. Regardless of cost, nearly all commercial spaces in Manhattan are in high-demand, and start-ups need to act quickly once they have identified their preferred region. It is a landlord’s market, and desirable space does not stay on the market for long. Often, a location in high-demand will elicit multiple offers from business tenants seeking to lease Manhattan office space for rent.
Start-Up Business in NYC: Expect an Elevated Security Deposit
During lease negotiations a start-up business in NYC may also find itself at a disadvantage due to the fact that landlords often prefer commercial tenants with a proven track-record. Because they’re sometimes viewed as being potentially risky tenants, start-ups are often required to pay an elevated security deposit. An experienced real estate broker can be of great assistance in helping a start-up find the right Manhattan office space for rent and negotiating the lowest possible security deposit. Brokers know what to ask a landlord and how to ask for it, and their understanding of the marketplace gives them privileged information as to which landlords are offering the most aggressive deals.
Lean on an Experienced Real Estate Broker
A real estate broker working as a tenant representative can help a start-up business in NYC by:
- Assisting in defining your search parameters and help you better understand the marketplace.
- Researching the market for potential space that meets your budget, and location and architectural preferences.
- Scheduling property tours of worthwhile spaces and accompany you on those tours.
- Drafting offers and counter-proposals to ensure that you receive the most advantageous lease terms.
Need help in your office space search? Contact Metro Manhattan Office Space at 212-447-5403.