If your business plans to lease office space in New York City, you naturally want to understand additional costs beyond base rent and utilities.
One transaction cost that can concern tenants is an office space rental agency commission.
However, it is a common misconception that the tenant bears direct or indirect responsibility for this cost. Whether you lease a commercial office, loft, showroom, or retail space, the landlord customarily pays all brokerage fees. If a commercial leasing agent represents you, the tenant, it’s of no cost to you.
Don’t Worry About Commercial Real Estate Broker Fees in NYC
With nearly 4,000 individual buildings and 545 million square feet of office space, the New York commercial real estate market is one of the world’s largest.
Realtors represent tenants in more than 90% of NYC’s commercial real estate transactions. The 10% that don’t involve a broker are usually the smallest deals.
Commercial real estate brokers are so prevalent in New York City commercial transactions, and it’s not surprising why. They facilitate the process, hone in on suitable office space, and provide tenants with negotiating leverage and insights.
Moreover, they have established relationships with the major landlords, leasing companies, managing agents, and more.
What Does a Commercial Tenant Broker Do?
Every business is unique, with different needs – architecturally, financially, and geographically. The best broker will take the time to become closely acquainted with your business to find the listings that best fit your needs.
However, an experienced leasing agent does more than only figure out the appropriate square footage, layout, location, and cost.
An experienced leasing agent can find New York City office space with the most particular requirements. Sometimes a tenant needs a pet-friendly building with bike storage, a startup-friendly building with a 24/7 attended lobby that allows events, or a medical space with specific ventilation requirements.
Do You Need A Commercial Tenant Broker?
Many commercial real estate brokers represent building owners. Of course, these brokers do not serve the interests of business tenants that want to explore all conceivable options for leasing commercial space in New York City.
Some commercial landlords represent both landlords and tenants and commonly face conflicts of interest. They may want to please the landlords they represent and foster their ongoing relationship rather than prioritizing a one-off tenant relationship.
The best choice is a tenant rep brokerage firm without any allegiance to a particular landlord. Those who explicitly focus on the needs of business tenants can help locate the best office space in New York City, regardless of who the landlord is. They will also negotiate lease terms with only the tenant’s best interests in mind.
The Key Takeaway
If you’re still hesitant, remember. Commercial real estate broker fees in NYC are typically a landlord’s responsibility and something you should not lose sleep over.
Their value proposition in a complex market for office space like New York City’s is irreplaceable.
Are you in the market to lease commercial space in Manhattan? Contact principal broker Alan Rosinsky of Metro Manhattan Office Space at 212-444-2241.