Commercial Real Estate NYC
New York City is an optimal place for business growth. Widely recognized as a global center, people come from far and wide to experience the cultural immersion that this city has to offer. From art and entertainment to finance and diplomacy, there is a market for everything here. Some of the world’s most well-known companies utilize NYC’s notoriety by setting up corporate offices and commercial property.
With over 300 square miles of space in New York City, real estate is always available. More specifically, office space in Manhattan alone is estimated to be over 500 million square feet and growing. Finding great commercial real estate in New York City is the first step to further growing your company.
New York Commercial Space for Lease
Leasing commercial space in New York City is highly desired. With a large and diverse population, companies can appeal to a wide range of people without sacrificing their business quality. Because New York City is a large area, it’s important to consider which specific neighborhood your company can fit into. Be sure to identify the cost you’re willing to pay for renting an office and compare this with your prospective profits. New York City is known for growing companies into larger businesses, so take the first step to find great commercial rentals in NYC by identifying the top neighborhoods there.
Popular Neighborhoods to Rent NYC Commercial Space
Some areas of New York City have more popular commercial properties for rent than others. This is due to the surrounding area of each neighborhood and what they have to offer. For example, some places may be less populated, while others can be geared towards younger generations. Below, you’ll find some of the current most desirable neighborhoods for New York commercial real estate.
The Flatiron District acquired its name after the infamous Flatiron Building located at the intersections of Broadway, Fifth Avenue, and 23rd Street. It is shaped like a triangle and grew admired due to the advanced architecture it highlights. This building, therefore, draws attention to the district.
Plenty of distinguished companies already exist in the Flatiron District. The most popular industries of these relate to technology and innovative startup agencies. Some examples include Enigma Technologies and the Apple Tech Center. Though there are plenty of IT businesses here, various other industries including fashion and publishing are seen as well. This shows how many different forms of companies can thrive in the Flatiron District.
Common throughout most of the Flatiron District’s retail spaces are open floor plans and lofted ceilings. This environment is increasingly popular for startup companies and those looking to bring clients into the office setting. Customer interactions are simple, as the district has ample public transportation available to allow your clients to access your office. Renting an office space around Flatiron is becoming more difficult, as demand for space is growing. This want correlates to higher cost, so keep this in mind if you’re interested in opening here. Regardless of cost, the Flatiron District is a prominent New York City neighborhood to open a business space in.
One of the most common misconceptions about Chelsea is that it’s primarily a residential neighborhood in Manhattan. While there are places available for housing, finding commercial property is common as well. Opening a business in a well-known residential area is a benefit, though, as a higher population directly relates to a larger recognition and local customer retention rate. This is especially true for Chelsea’s up and coming contemporary and chic culture.
Some of the most common establishments in Chelsea relate to a younger generation. There is a hip culture growing in this neighborhood, so those that appeal to this are more well off than others. For example, the offices of Google and Apple are here, as are other well-known spots like Kleinfeld Bridal and Aesop. Businesses who do well in Chelsea are based around art, technology, and LGBTQ+ positivity.
Compared to the average leasing cost of business and retail spaces in New York City, Chelsea is slightly higher. NYC’s average amount per square foot runs about $85, while Chelsea locations tend to ask about $95 per square foot. This means that this area is in higher demand than other sections of the city may be, which could insinuate positive growth for any business that opens their doors in Chelsea. The neighborhood of Chelsea is a top location in New York City for companies to open shop.
Tribeca is one of the trendiest locations for commercial real estate in New York. Located between the Hudson River and Broadway, this area is teeming with hip culture. The mix of historic landmarks and buildings with colorful walkways and cobblestone roads makes for an aesthetically pleasing environment. Both residential housing and retail or corporate offices are seen throughout Tribeca. This means businesses are likely to have recurring customers as long as they appeal to those living in the area.
Some of the companies that attract the people of Tribeca are in the fashion and food industries. This means many places here are best for restaurants, and small, fresh eateries including The Odeon, Sanctuary T, and Black Tap. Additionally, posh boutiques like Lovely Bride, Thom Browne, and VFiles are found in Tribeca. Not only small retailers are here – large corporate offices of David Yurman, Citi Headquarters, and Verizon are here. If your company fits in with a young and hip culture, Tribeca is a top choice.
New York City commercial real estate in Tribeca costs an average of $87 per square foot, which is only $5 higher than the average square foot cost of NYC as a whole. For such a trendy environment, Tribeca’s prices are a steal. Be prepared to find large office spaces in beautifully deep-rooted buildings. For a popular neighborhood to open an office in, Tribeca may be a great option for you.
As the name suggests, Midtown Manhattan is a large section centered in the middle of the borough of Manhattan. It exists between the borders of the Hudson and East Rivers, as well as East 14th and East 59th Streets. Because the neighborhood is so large, other smaller neighborhoods are classified as subregions under it; they are all sufficient for businesses.
One of the most valid reasons for opening a company office in Midtown Manhattan is the amount of recognition the area receives. Plenty of famous monuments and landmarks draw the attention of both locals and tourists. Opening business close to areas of popularity like the Empire State Building, Bryant Park, Madison Square Garden, Rockefeller Center, and St. Patrick’s Cathedral can lead your company to prosperity. Additionally, medical offices are popular here, especially on Park Avenue; if you’re looking to open a medical space, Midtown is a fitting spot.
The average cost of retail space in Midtown Manhattan is about $80 per single square foot. This is under the average cost of square footage in Manhattan by $3, indicating that space in Midtown Manhattan is an excellent deal. Not only would you get a great space at a worthy price, but you’ll receive lots of attention from both pedestrians and consistent customers. If you have a company that would benefit from recognition, Midtown Manhattan is the place to be.
South of Houston Street, or SoHo for short, is easily one of the most recognized neighborhoods in Manhattan. It is the epicenter of modern culture which shows through the businesses open here. In the mornings, you’ll see high-end boutiques, fancy art galleries, and designer brand names lining the streets. At night, the neighborhood transforms into a nightlife centered area. Night clubs and elegant restaurants are not uncommon.
To appeal to the culture of the population living in and around SoHo, quality stores are there. For example, Purl, Zara, Patagonia, Bape, and Canada Goose are just a few of the most popular ones. In addition to this, quality eateries like Blue Ribbon Sushi, Felix, Galli, and Sanctuary T are in SoHo. Companies that thrive here are those that support the community’s desires.
In terms of commercial rentals in NYC, at up to $110 per square foot of office space, SoHo can be an expensive place to open a business office in. This is about $20 higher than the average cost of office space in Manhattan. When you weigh the cost versus the benefit, though, it’s often seen to be more beneficial here. Higher foot traffic is established, and for stores that appeal to the higher end of the population in SoHo surely profit. SoHo is a very popular place in Manhattan to open a retail site or corporate business office.
The Financial District is located at the southernmost tip of the borough of Manhattan. As the name suggests, it’s known in the borough as a hotspot for economics. The neighborhood itself is quite large, as it runs from the Brooklyn Bridge to Battery Park. Businesses who appeal to modern workers tend to thrive in the Financial District.
Because the Financial District is considered New York City’s economic hub, you can expect there to be various large financial institutions here. For example, the New York Stock Exchange is here, as are both NASDAQ and the Federal Reserve. Most companies who open here are hoping to benefit from being in close proximity to other financial businesses. Other types of companies include elite restaurants and bars like Reserve Cut and The Dead Rabbit.
Office space in the Financial District ranges in cost, but on average you can find rental spaces for $60 per square foot. This is $20 less than the average cost of square feet in all of New York City. The Financial District provides a great spot to open a business, especially if your company relates to economics, for a cost-effective price. With a department here, your business is sure to take a profit.
Top Commercial Space for Lease in New York
Finding a great commercial space for rent in New York can seem difficult at first, as there are plenty of options to explore. Some office locations in New York are arguably better than others. There are also quite a few that stand out above the rest due to their environments and what they have to offer.
The Woolworth Building is located in Downtown Manhattan. More specifically, it’s in the Financial District. The iconic building was built in 1913 and overlooks the Hudson from top stories. You can access the building 24 hours a day and has security to monitor the entrance. For reference, some examples of businesses currently renting spaces here include NYU Langone and Goldfarb & Gerzog Law Firm. 223 Broadway is considered a top commercial space due to its proximity to nearby transportation, its useful amenities, and the environment the building provides.
420 Lexington Avenue
420 Lexington Avenue, otherwise known as The Graybar Building, is a 31-story Manhattan building that offers Class-A office space for renters. It was built in 1927 to fit into Terminal City around Grand Central Station. In fact, it has direct access to six Metro North platforms through the Grand Central Terminal, thus making it ideal for commuters. Now this building is considered a New York City Landmark. Inside Graybar, bronze features and tilework is common throughout all spaces. 420 Lexington Avenue is a top option for commercial lease in NYC, especially since it’s in a popular and accessible area of Manhattan.
499 Park Avenue
The 28-story building of 499 Park Avenue is located on the northern end of Midtown Manhattan. It was built in 1980, making it a relatively newer building in New York City. Close to 5th Avenue, plenty of attention is drawn to this location. It’s perfect for company office space, as the floor plans provided are large and open. The external environment is beautifully crafted with dark glass all around. Additionally, because of its location near Lexington Avenue, tons of transportation options are available. 499 Park Avenue is a top option for office space for those looking for a more formal workplace organization.
New York City Economic Overview
New York City’s economy is strong and has been for an extended time. With a large number of tourist sites and historic landmarks in the area, there is often a constant stream of people entering the city. In terms of employment opportunities, over 4.5 million jobs were available last year. The average percentage of people actually employed in New York City is 58 percent. This means majority of the people over aged 16 are currently employed here. Of these people, the average NYC income is $60,000 per year. In more profitable parts of the city, such as Manhattan, this average increases to nearly $75,000 per year.
Because of New York City’s accessibility and population, businesses tend to thrive here. The average salary of business owners in New York City is about $73,000 per year, which is about 15 percent above the national average. With this, as long as your company is established, you’re likely to profit significantly. Opening your company store or business headquarters in New York City is a great idea if you’re looking to appeal to the economic thresholds of the area, as well as gain a constant stream of customers from both tourism and pedestrian traffic.
New York City Population
The population of New York City is extremely diverse. As of 2018, approximately 8.6 million people live here. Of these, 42 percent of people are white, 25 percent are African American, 15 percent are Asian. 52 percent are female, while the remaining 48 is male. The median age of people here is 35, and the majority of those living here are between the ages of 18 and 55.
Those looking to open a business in New York City should pay attention to the demographics of the specific neighborhood they want to open in. Some tend to be more heavily populated with an older age group, yet others are significantly younger. Understanding the population of your prospective neighborhood is key to ensuring the success of your business in New York City.
Transportation is essential to finding an area to open business in. If your clients can’t reach you, there is no purpose to opening there, as you won’t have consistent clients. Thankfully, New York City neighborhoods are known to be extremely accessible. Subway stations, buses, and trains are all over. Most are also available 24 hours a day, every day of the week.
In addition to vehicle transportation, bike share companies are popping up all over. This means you can rent a bicycle for as long as you need and return it to any bike share station in the area. This was implemented as a way to reduce air pollution and traffic throughout the city. If biking isn’t appealing to people, sidewalks are everywhere, and walking is easy. In fact, less than half the population of New York City actually have vehicles due to the ease of pedestrian and bicycle traffic. Recognizing the ease of access to transportation when locating a business office is an important step.
Open Your Business in NYC
New York City is a great place to open a business, as it is a widely recognized location and can provide substantial profit if planned accordingly. Be sure to focus on demographics, transportation, and the features of the neighborhood you’re considering. Grow your company by opening a workspace in one of the most densely populated places in the United States.