Everything You Need to Know About Renting Office Space in New York

New York City is arguably one of the most exciting places in the world to do business. As the city that never sleeps, there’s an endless supply of opportunities for hard-working business owners looking to tap into everything New York has to offer. But to do business in Gotham, you have to have space to work in.

Renting office space in New York can be the most challenging aspect to running a business here. Furthermore, the market in this part of the world is constantly in flux. Things change all the time. From rental rates to the volume of space available, you have to stay on your toes to stay ahead of the game.

To that end, here is everything you need to know about renting office space in New York:

1. NYC Office Space is Expensive

There is no getting around the fact that office space in the Big Apple is expensive. According to Colonial Life & Accident Insurance Company, New York is the most expensive city in the U.S. for office space, coming in at $48.51 per square foot. Washington, DC and San Francisco come in at numbers two and three respectively.

2. Multi-Year Leases

The Realty Times says the average office space lease in New York runs from 3 to 5 years. Here’s what you need to know: you don’t necessarily have to sign a lease of three years or longer. There are plenty of property owners willing to go 12 months at a time. You should be pursuing a lease length that fits both current and future plans.

3. Renting is Better with a Broker

You can pound the pavement looking for New York office space on your own. However, life is better with a broker. Experienced brokers know what is available at any given time. They know how to quickly find properties that meet your needs and budget.

4. Leases Are Negotiable

The beauty of leasing office space is that leases are not set in stone prior to signature. In other words, you can make an offer on any office space that appeals to you. Property owners are likely to at least listen to your offer. If they are willing to negotiate, that’s even better.

5. Closing Takes Time

Commercial leasing is quite a bit different than residential leasing in many ways, not the least of which is the time it takes to close. Closing a commercial lease can easily take weeks. Agreements have to be shuffled between attorneys, references have to be checked, insurance has to be verified, and so forth. Don’t stress over it. When you’re ready to sign a lease, be prepared to wait for the process to run its course.

6. Finding Cheaper Rent in NY

A general rule of thumb is that rents increase the closer you get to the city’s center. In New York, the most expensive prices are in the Greenwich Avenue and Fifth Avenue neighborhoods. The further you branch out from these two regions, the more affordable rents will be. Also, note that rates in Manhattan can vary greatly from building to building. If you’re insistent on Manhattan, be prepared to look around a bit.

7. Coworking and Virtual Space Options

You don’t need to rent an entire office to do business in New York. Co-working and virtual space are two less expensive options for smaller companies and startups. A coworking scenario involves renting a workstation in a building offering shared space. Coworking spaces usually offer conference rooms, coffee service, high-speed internet, and other amenities.

A virtual space scenario involves just an address rather than an actual workstation. Providers offer services including voice mail, remote reception, and the like. Virtual space can be helpful to startups that need a street address even though physical office space is not necessary.

8. Coworking Offers Collaborative Opportunities

There are some coworking environments that cater to certain kinds of professionals, like attorneys for example. If you can find a coworking space that allows you to mingle with others in the same industry, the space will likely facilitate numerous opportunities for collaboration.