3 tips that will help you get the best deal on office space in NYC.
Tip #1 Know you’re all in cost for leasing office space.
Additional costs are usually not given to you up front and some are costs hidden in the office lease.
If you want to know you’re all in cost you would have to ask for a specific Commercial real estate term. The term is total effective rent. Ask your leasing representative for the total effective rents. so that you’re able to compare spaces with the all-in costs.
The reason for knowing your all-in costs is so that you could compare office spaces effectively. Uniformed tenants compare spaces with the face or advertised rent. Experienced tenants compare office spaces with the total effective rents.
Bottom line. Know your all-in cost so you can you identify which space is a better deal.
Tip #2. The second tip is to know what a loss factor is and how it affects the amount of office space you pay for.
You must know what a loss factor is and how it relates the measurement of office space. If you have a high loss factor you will get a lower amount space within your office.
All office spaces in New York City has a loss factor. Its up to you to find out the loss factor percentage of each space you consider. New York City is known higher loss factor than most other states.
This is what you need to know. Office space loss factors in New York City range from around 25% -45%.
Your goal is to get a lower loss factor percentage because you will get more space within your office for less money. You can find the loss factor of a space by asking an experienced tenant Rep broker that you trust, and they will help you get the loss factor. You could also ask the landlord Representative, but I would verify the number that they give you.
Tip #3. Do not just focus on getting the lowest rents.
You might have gotten a good deal one the rent, but is it a good deal if there are issues within the office building.
How would you know if there is a security issue in the office building and it’s not safe for you or employee’s during certain times of the day?
If the elevators are crowded or causing delays during certain times of the day? or if the restrooms are properly maintained?
You would not find this information upfront. Usually, you will find out after spending a few weeks in your newly leased space.
This how you can save yourself from getting a poorly maintained building.
Before signing a lease visit two to three tenants in the building and ask them if there is an issue in the office buildings operations. You will definitely get an answer if the building is poorly maintained.
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