Starting out a business in the great city of New York can be quite a challenge, especially when you take into consideration the high costs of renting an office. So, is there a way to save some money on office costs? Keep on reading to find the best insider tips for cutting down upfront costs when renting office space in NYC:
Check the Square Footage You Are Getting
This is probably incredibly obvious, but the truth is most people don’t really know the exact usable square footage they are getting when signing the lease. This is why, some landlords and real estate agents use rather shady practices to trick you into signing a lease for a lot more space than you will actually get. Check the fine print before signing anything and make sure the office space will be able to accommodate your business as it grows over time.
Check the Lease Terms
Different lease terms apply for different durations and if you decide to rent for longer periods of time, you are definitely able to opt for some bonuses. With a longer lease, you have better chances of negotiating good terms for price, square footage and other amenities. Furthermore, sometimes you can even get few months of your office space usage for free.
Office Space Usage
Signing a lease for office space in NYC is just the beginning, if the office is empty, you will have to invest quite a lot of money to get started and even more when your business grows. Believe it or not, you can negotiate your way into a deal that will include at least basic office furniture and the office space will be scalable, as your team and needs grow.
Landlord Services 101
Landlords offer a wide variety of services related with the maintenance of the office space and it’s up to you get the most for your money. Typically, if you manage to get a large service offering from your landlord in the beginning, you can save a lot in the long run.
Rent Increases over Time
Every lease contract contains clauses regarding rent increases. Most of the time, the landlord will be able to increase the rent by a certain percentage over a certain period of time, as well as by certain percentage when the lease is up. Make sure you are familiar and agree with all such terms in the contract prior to signing it.
Subletting Opportunities
Subletting is a common way to share the office space costs with another business, so make sure to check the specific requirements in the lease. If subletting is not an option, carefully consider your specific needs – what are the chances of you leaving the office space, before the lease is up? Can you afford to cover the rent, while the contract expires?
Repairs, Upgrades & Redesigns
As already mentioned, getting your landlord to agree to provide a wide range of necessary maintenance and repair services will definitely help cut office space costs in the future. Furthermore, a lot of the time, office space units don’t come ready for business, so it’s very likely that you need to invest a bit more into redesigns and upgrades before you actually move in. Some landlords use lease clauses that can delay any improvements, so you will need to make sure that you are able to get any renovations you completed fast, or it may seriously harm your business.
If this is your first time considering leasing commercial property, it may be advisable to seek the assistance of a professional or a broker, that can explain unfamiliar jargon and potentially help negotiate better terms on your behalf.
Happy Hunting!
