Commercial spaces in New York do not come cheap. In fact, New York has the highest leasing rates for office spaces and commercial spaces, averaging at $58.77 per square foot. However, the price per square foot would still highly depend on where you plan to get the space. Rent is generally cheaper in the downtown area so if you’re a startup business, it’s a good place to start especially since rent makes up the highest percentage of a business’ overhead. If you’re in the market for a commercial space in NYC, you might want to take note of the following tips when choosing:
Opt for a Smaller Place
A lot of business owners make the mistake of getting a big place even at the onset. If you don’t really need such a big space for your business, it’s recommended that you opt for something smaller, especially since prices are per square foot. A smaller place is not only easier to manage but it’s also much more feasible to keep in the long run. You can always move to a bigger place as the size of your operation expands.
Consider the Costs of Renovation
Renovations are always part of leasing a commercial space, as you’ll have to design the place in such a way that reflects your brand and encourages customers to come in and look around. Most commercial spaces are well maintained and undergo repairs after every lease period so you’ll likely only have to shell out for the aesthetic aspect of renovations. Before getting the place, consider how much you need for renovations first. This is especially important if you are planning major changes. It would be helpful to take a renovation expert and designer with you so they can give you an idea of how much you’ll need to shell out for renovations.
Some landlords require at least 1 year and some even require 5 to 10 years but if possible, get a commercial space with a flexible lease period. The problem with long-term lease periods is that if you experience problems with your business later on, it’s going to be difficult to get out of your lease so opt for shorter-term lease periods to be safe.