People who are in search of office space in NYC should not have a problem finding what they are looking for. The main reasons for this is that new office space of more than 425,000 square feet was added to the current market and the vacancy rates for most of the New York areas are between 6.6% and 9.6%. Therefore, office space is available in nearly all the areas of New York City.
What Can a Person Expect to Pay per Square Foot?
Office space in NYC is among the highest in the country and costs on average $58.77 per square foot, but it mainly depends on where the office space is located. For example, in the midtown south area the average rent is around $49.12 per square foot and these higher rent figures are encouraging tenants to look for cheaper office space downtown.
During the last year the rates for renting office space in NYC rose by about 13%, while the average commercial leasing activities dropped by about 11%. Landlords were mostly happy as rent rates held ground and no real changes were recorded. It was a very positive sign for the markets landlords that the average going rate for rent in the midtown south area increased by about 10%.
Where in NYC Should a Business Rent?
It all depends on what the requirements of the business are, but also how price sensitive the owners are. Rent makes out a large portion of any companys monthly overheads, so if it is possible to save on rent, it is always going to make a huge difference. Monthly rent for office space in NYC goes a lot further in the downtown areas, compared to midtown south, so if price is definitely an issue then people should have a look at the available office space downtown first.
To ensure the best possible office space at the best price per square foot, it is advisable that a person shop around thoroughly first. Negotiating a lower rent for office space in NYC is furthermore recommended,as several landlords are desperate to rent out their properties.