With the ever increasing price of New York City commercial real estate rising due to the conversion, and demolition of office space, tenants are placing more focus on lease expenses. When looking for lease NYC office space, the options are so vast that the search can be overwhelming. Where does one start? The answer to this question lies in first examing the best methods of finding office space. The online method of searching for office online independently usually does not yield the best results due to the lack of listings that actually get posted on the web. The alternative to the online method would be partnering with a tenant broker. Negotiations with a landlord can yield significant savings, the issue is how does one execute the right negotiations? The fact of the matter is that for the majority of tenants, the knowledge of real estate is lacking. Due to this, landlords almost always have an upper hand when it comes to negotiations if one goes at it alone. This is for obvious reasons because most landlords specialize in commercial real estate. By partnering with a tenant broker to find lease NYC office space, your business becomes your priority agian. Instead of learning about commercial real estate, tenant brokers are able to negotiate on behalf of their clients. If the tenant decides to sign on a lease, the tenant pays nothing to the broker. The broker’s commission is paid by the landlord. In this way, tenants have no risk with partnering with a tenant broker.
The general New York City real estate market trend has been the rising cost of office leases. The question becomes, why is the price to rent NYC office space rising so dramatically? The lease on office space is typically a business’s largest expense. That being said, the rise in price has sufocated a number of businesses. The culprit in the rise of New York City lease expense is the almost constant demolition of office space which has been occurring throughout the city. There have been a number of demolitions which destroyed office space. To make matters worse for tenants, a number of commercial buildings have undergone residential conversions. All in all, the simple rules of economics dictates that with less supply, and demand either increasing or staying the same, prices will undoubtedly rise. In essence, a shortage of commercial real estate has forced prices to rise. In this harsh environment, how are tenants expected to save money? The hiring of a tenant broker may alleviate the stress of an expensive lease due to the services offered by tenant brokers. These services include the negotiation of lease terms, the search for an ideal office space, and other services. Partnering with a tenant broker has the obvious benefits of decreasing the cost of one’s lease agreement without a reduction in the quality of office space. Clients typically save 10% to 15% off their lease expense.
Different broker types have different purposes within commercial leasing. Depending on the type of broker there is a correlating purpose the broker excecutes. The three main types of brokers within commercial leasing include the tenant broker, the dual representation broker, and the landlord’s broker. The tenant broker finds the tenant the best NYC office space for lease. The purpose of this type of broker is to represent the tenant exclusively. When a prospective tenant needs space for their business, they might partner with a tenant broker because of the services offered by tenant brokers. These services include searching for space based on unique criteria the tenant lays out. If the prospecting tenant likes the space it has been shown, it might sign on a space. The prospecting tenant does not pay the broker's commission. The landlord does. The landlord's broker works on behalf of the landlord. The landlord wants to decrease the rate of vacancy within their buildings, therefore, the landlord may hire a broker to find tenants who are willing to pay the most for the least amount of office space. In this way, landlord brokers really don’t have the tenants best interests in mind. Dual representation brokers represent both landlords, and tenants. In this way, the dual representation broker may be divided in his representation of the tenant. Dual representation brokers do not have the tenant's best interests in mind exclusively for the aforementioned reasons. In essence, brokers bring together the tenant and the landlord to form a sort of business union. It is the job of the broker to do this. When tenants are searching for space, they should be mindful of what kind of broker they decide to work with, because only one kind has the tenants interests in mind exclusively.
The validity of brokers may come into question by tenants when they receive poor service. The issue really comes down to the type of broker which gets utilized. There are a number of different types of brokers which one can go with. These include landlord brokers, dual representation brokers, and tenant brokers. All of these brokers have their own subsequent interests in mind. In the case of landlord brokers, this type of broker seeks to find a tenant willing to pay the absolute most for the NYC office space for lease which comes from the landlord. In other words, the landlord broker does not have the interests of the tenant in mind because he is trying to get the tenant to pay more for less space. The second type of broker is known as the dual representation broker. These kinds of brokers represent both the landlord and the tenant. There interests cannot be entirely in line with those of the tenant because they represent both parties, the landlord, and the tenant. Because of this, prospecting tenants should be cautious of signing any exclusives with dual representation brokers. The final kind of broker is the tenant broker who seeks to find the tenant the best space for the best price. NYC tenant brokers are harder to come by because they represent a smaller portion of the total broker population. Tenant brokers benefit only when the tenant benefits, in this way they have the tenants interests in mind exclusively.
There are a number of methods in which one can find their ideal NYC office space. The methods differ as to how effective they are. The first method consists of partnering with a tenant broker, whilst the second approach consists of conducting individual online searches. The majority of office listings will not be posted online. There is just no guarantee your ideal space will be posted on the web. The probability of such an occurrence is just too low. The office spaces which are posted online may be marketed heavily, however, that does not directly correlate to the quality of the space. The alternative to searching for rent NYC office space, or lease NYC office space on the web would be to partner with a tenant broker. Tenant brokers are brokers who have the best interests of the tenant in mind. There are a number of different broker types which do not have the brokers interests completely in mind. These different kinds include dual representation brokers and landlord brokers. Dual representation brokers represent both the landlord and the tenant. This configuration does not benefit the tenant for obvious reasons. Furthermore, landlord brokers represent only the landlord, so they are preoccupied with finding tenants for the landlords space who are willing to pay the most for office space. To answer the overarching question, finding the ideal space online is essentially impossible because the probability that your ideal space will be posted is actually quite low. Nonetheless, for those looking for lease NYC office space, they should hire a tenant broker for the obvious benefits which come from the partnership.
The most obvious way in which tenants are able to save money on their lease NYC office space is through negotiating the terms of the lease. The issue with this approach is that for the majority of tenants, negotiating with the landlord on one's own is usually catastrophic. This is due to the fact that landlords typically know more about commercial real estate than the average prospective tenant. To deal with the lease terms and negotiations would steal valuable focus away from what truly matters, that being one’s own business which requires the utmost attention. The partnering with a tenant broker usually saves prospecting clients the most off their lease expense. Tenant brokers are typically experienced at negotiating the specified lease agreement into the favor of the tenant. Tenant brokers are unique in that regard. Most brokers either represent only the landlord, or a consortium of both tenant and landlord. What this means is that dual representation brokers or landlord brokers do not have the tenant's best interests exclusively in mind. Therefore to answer the question, the best way prospecting tenants can save money on their lease agreement is to partner with a component tenant broker who can negotiate the lease term into the favor of the tenant. With the right representation expect to see savings off your total lease expense ranging from 10% to 15%. The important fact to remember is that most leases can be negotiated, which is good news for prospecting tenants.
There are a number of ways a business or an individual can find space for lease office NYC. These multifarious ways include searching online, and searching through a broker. The choice of method depends on how serious one’s lease office NYC search is. For the best results an online search would not be preferred due to the lack of listings that actually end up being posted on the web. For the best method of locating office space in NYC hiring a tenant broker is the best option. Tenant brokers, as opposed to other types of brokers have the tenants best interests in mind, completely. The reason tenant brokers are the best choice also extends to the fact that tenant brokers may have access to listings not available to the general public. In this way, tenant brokers can find the most ideal office space for any business. When one finally locates their desired space, that is only one part of the process. The process which ensues may require further lease negotiations with the landlord, on behalf of the tenant. The tenant does not typically have to worry about this business, this is the broker's fiduciary responsibility, therefore, as the tenant broker creates the best deal for the tenant, the tenant can focus on their own business.
Coworking has become increasingly popular amongst New York City prospective tenants, who are looking for their ideal space. The critics of coworking typically point out how when harsh economic times come underway companies become more expense orientated and examine their balance sheets more thoroughly. What they find is that they are paying more for the same amount of space when they choose coworking. Traditional leases usually cost less for the same amount of space than do coworking solutions. In this way, the company will save money on what tends to be the largest expense for businesses, their lease. The supporters of coworking will then point out that companies may actually gravitate towards coworking solutions during harsh economic times because of the flexibility in lease agreements that arise from coworking in NYC. All said and done, both sides make a compelling case. In order to set up shop in a coworking space there is usually a premium to pay. That being said, traditional leases may require more commitment which companies may not want to partake in. To answer the question of whether or not coworking is more affordable than traditional leases, one must look at a number of factors. First, if a business is comfortable committing to a multi-year lease instead of settling for a flexible, more expensive, month to month coworking space. This is wholly dependent on the unique circumstances of individual company’s. Tenant brokers can make the decision more clear by showcasing all available options.
When the question of the necessity of brokers is raised, one must first answer the very pressing question on what brokers actually do, before the first question can be addressed. Brokers in general are the entities that bring the landlord and the tenant together to form a deal. The deal usually consists of the tenant leasing space from the landlord. The broker will typically negotiate the lease term agreement and find either the tenant the right landlord, or vice versa. When searching for the right rent NYC office space the prospective tenant may question the necessity of the broker, although, depending on the type of broker, this may be a counterproductive endeavour. There are a multitude of different types of brokers. One type represents only the tenant. The second type represents only the landlord. The third type represents both landlord and tenant. The type of broker a tenant chooses may heavily influence the type of lease NYC office space which the tenant may decide to sign on. The right type of broker must be selected, which seldom happens. This then leads to prospective tenants questioning the necessity of brokers. Since only one type of broker has the tenants interests in mind completely, prospecting tenants should choose wisely which broker they select to sign an exclusive agreement with. The final alternative to brokers would be the internet, but in its current form, only a small fraction of all available space actually gets posted to the web. Thus, to answer the question on whether or not brokers are necessary, yes, but that should only be the beginning. Yes, with the right broker, one is far better off than doing it alone.
When looking for NYC office space the methods of actually doing so include, either hiring a broker, or conducting an online search. The method of conducting an online search by oneself consists of a number of deficiencies. The first being the lack of listings that actually get posted onto the web. The majority of NYC office space listings are not posted on the internet. Furthermore, the spaces that are marketed online may not always be the best space for you, although that is truly determined on a case by case basis. For the best lease NYC office space for your circumstances, one should consider hiring a tenant broker. Tenant brokers differentiate themselves from other types of brokers because they are the unique kind of broker which has the interests of the tenant in mind completely. There are other kinds of brokers which can find you lease NYC office space, and they include dual representation brokers, as well as brokers who represent the landlord exclusively. Dual rep brokers are brokers who represent both the landlord and the tenant. Consequently, dual rep brokers do not have the tenants best interests in mind. Furthermore, the landlords brokers do not have the tenants best interests in mind as well, for obvious reasons. The landlord, afterall, wants to lease the least amount of space for the most money. Thus, with a comprehensive survey of all the options that can lead one to their ideal lease NYC office space, one finds that there is really only one option which stands superior to all the aforementioned options.
However, the costs due to uncompetitive bidding and arcane rules and regulations makes costs 2-7 times more expensive than other world cities. Subways are using 1910 technology. They cannot run at higher capacity due to old switches which the MTA says can be repaired in the next 20 years. Why repair and not use military grade WIFI. Tunnels? They desperately need to fix the train tunnel damaged during sandy. Power levels from corroded cables reduce capacity and tunnels are in danger of collapse if not repaired/replaced. Added capacity with new planned rail tunnels to New Jersey have been cancelled by Federal Government. East Side access is 10 years delayed with no imminent opening. Why is no one talking about structural reforms to fix systems that is allowing these critical infrastructure projects to be fixed promptly?. What about bringing in the Army Corps of Engineers to resolve?
Conventional thinking was that small and rapidly growing companies, or companies that were uncertain about longevity of project would rent shared office space.
This limited the shared office market to companies or divisions under 10 people. Now huge firms like Amazon who just rented out an entire WeWorks at 34th Street and Microsoft renting shared office space near the Watson project in the east village.
Time will tell how many other firms follow.
This shows how cash hungry and struggling the retailers are. This also shows the depth of the market for shared office concepts. WeWorks continues to expand and is filling their facilities. That is a great indication of market depth. WeWorks is just one of many providers of co-working centers.
New York City submitted a bid to get the 2nd Amazon headquarters which means 50,000 jobs. New York City has 4 locations or areas where they could build and an existing amazing transportation system. New York City also has a deep bench of talent for Amazon to draw on and is therefore a likely city to be selected. Amazon recently announced they were hiring 2,000 employees in N.Y. for advertising and will move to the former Skyrink building.
The city is about to make it harder to build hotels in New York City manufacturing zones. The current proposal will require a special permit. This will increase costs and time to get sites ready. The bigger problem is this will give unions a greater opportunity to make the job site union which will drive up costs for new hotel rooms. This law will make the existing inventory more valuable as the city is creating a higher barrier to entry.
With Amazon’s latest bid for Wholefoods, the consumer should start to see consolidation in the supermarket space. Purchase price of Whole foods 13.7 Billion. Wealth destruction of other supermarket chains $40 billion. That indicates the amount of carnage expected to come in the near future. What is Amazon going to go after next pharmacy??
Starbucks Coffee’s is closing all its 379 Teavana stores by the spring of 2018.