Mistakes Tenants Make

Mistakes when leasing NYC office space can be costly, especially if you are renting in high-demand commercial real estate areas like Manhattan. The New York City commercial real estate market is different from that of smaller cities. The terms and conditions of lease agreements can vary greatly from what small-market lessees are accustomed. Gaining a better understanding of how commercial real estate works in New York City can help business owners to avoid the most common mistakes made in leasing office space in this vibrant metropolis. Learn the Language of NYC Office Space One of the most common mistakes tenants make when considering NYC office space options is not understanding how certain terms and phrases are used within the context of… Continue reading

Posted in Understanding Commercial Lease Language.
Loss Factor

You make an appointment to see a New York City commercial space that, judging from some online photos, appears to be ideal for your business. It’s got a great location, reasonable rent, and just enough square footage. But when you get there, there seems to be less space than was advertised – significantly less. You’ve just experienced loss factor. What is Loss Factor? The loss factor is the difference between “rentable square footage” (RSF) and “usable square footage” (USF). RSF incorporates a corresponding proportion of common areas such as the lobby, corridors, public bathrooms and elevator vestibules. USF, however, is the space allocated for your company’s use. It follows that USF is always smaller than RSF. How is Your Company… Continue reading

Posted in Commercial Leasing 101.
Don’t Fear the Loss Factor

Few terms make brokers and tenants in New York City squirm these days like “loss factor.” Loss factor is essentially the amount of communal space for which a tenant pays, but which is not included in the actual size of the office. Examples of common areas that contribute to loss factor can include the building’s lobby, janitor closets and elevator shafts. Loss factor made headlines recently when a news story reported on a small office tenant who sued his landlord for nearly $300,000 due to damages incurred by the owner’s apparent miscalculation of rentable square footage (RSF). The story illustrated why loss factor is an important term to understand before signing a lease. Brokers Know Areas with Low Loss Factor The… Continue reading

Posted in Commercial Leasing 101.