LOOKING FOR OFFICE SPACE IN NEW YORK CITY?

 

(REPRINTED WITH PERMISSION, FROM THE NEW YORK CITY CHAMBER OF COMMERCE NEWSLETTER)

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        Finding the right space and location for your company is very important; however, the task of looking for office space can be daunting since most people have not had much experience with this process.  Your work environment can have a profound impact on employee productivity, client perceptions and overall success.  Here are some tips on finding the ideal space for you, your employees and business.

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SELECTING A BROKER

        Working with a broker at the early stage can help level the playing field between your business and a prospective landlord in a tight market.  A broker can help your company understand the market, how to compete with other tenants for attractive space, and employ the most effective tactics for negotiating with landlords.

        It’s best to work with just one broker; it’s less confusing.  It is essential that you find a broker who understands your needs and with whom you relate well.  Make the broker your partner in the search.  The more he/she understands about your business and needs the more helpful he/she can be.

        Commercial brokers have access to all spaces in Manhattan, and can show you everything, including  exclusive listings.

        Make sure your broker values your time by being punctual and only taking you to spaces that meet your requirements.  Be considerate of your broker and be on time.  Since your broker will likely have scheduled several appointments, she will constantly have to reschedule if you are late.

        Keep accurate, detailed notes from the beginning of your search; after viewing many spaces you may need to refresh your memory.

 

PLANNING YOUR PARAMETERS

       Determine the areas in which you’d like to look, the size and conditions you think you’ll need, your budget, and the order of importance.  Make sure you don’t waste time looking at spaces that aren’t within your parameters, and also allow for some flexibility.  If your ideal space does not exist, discuss with your broker what changes in your requirements you would be willing to make.

       What area of the city is most suited to your needs, and to your image?  Designate a location that has convenient transportation for clients and employees.  

       What type of space do you want?  Are you looking for a creative open space, or a more conventional layout with individual offices?  How important to you are the building’s systems, such as security, bathrooms, elevators and HVAC?

       What size space do you really need?  Look at your long range plans – if business booms will you outgrow the space before the lease expires?  If that is possible consider leasing in a larger building, as most of the larger buildings will release you from a lease in order to move into a larger space within the same building if there is availability.  If this is important, check with the building in advance to make sure you will have room to grow.

        Unlike residential real estate, which is described as the amount of rooms, commercial real estate is described in square feet.  If a space is advertised as 5,000 rentable square feet the usable amount will range from 15% to 35% less; this means that the usable space could be as small as 3250 square feet.  This “loss factor” includes stairways, elevators, lobbies, and whatever else the landlord wishes to include.  Make sure you describe your needs so that the broker understands that you are speaking about rentable or usable square feet.

        What is the range of your budget?  Make sure to discuss with your broker all of the associated costs.  Your broker is a tenant rep – working for you- it is not necessary to “low-ball” her.  Tell her your actual budget so that she doesn’t bypass spaces that may be of interest to you.  Your broker’s job will be to find you the best deal for the space you want.

 

DESIRABLE SPACES GO FAST

        The market fluctuates and if you are looking for space at a time when there is a shortage of desirable office space in Manhattan, it is important to act quickly when you see something that you want as the market can be very competitive.

        Have your financial information readily available and be prepared to submit it together with your offer.  Most landlords ask for a current financial statement, audited by a CPA, plus two most recent years of corporate tax returns.  It also helps to submit a description of your company, your website, how long you’ve been in business and what your company actually does.  Include any PR pieces or written material you have in your possession. 

        Make sure you select an attorney who is a “deal-maker,” and not a “deal-breaker.”  It is important that you choose an attorney with a background in commercial real estate law.

        Many landlords prefer to give “free rent” rather than do a “build-out”.  Have a contractor in mind that can price a build-out for you, so that you know what the actual cost will be.  Once you have an idea of the costs involved you can make education decisions.

        All in all, be prepared to devote time and effort to your search.  Think to the future as you may be in this space for quite some time and it’s important that it meets your needs now, as well as moving forward.

 

 

Simone Lillian

Simone Lillian and Co.​

Mobile 917 450-4088

simone@SimoneLillianAndCo.com

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