|
|
FREQUENTLY ASKED QUESTIONS 
How is a broker's commission paid in commercial real estate?
In New York City commercial office leasing, it is customary for the broker to be compensated by the building owner or management company. This means any company seeking commercial space can utilize a commercials broker's services free of charge.
Why should I only work with one broker?
Changing offices can be a time consuming process. It often involves extensive listings research, multiple location visits during the work day, tracking and organizing all of the spaces viewed along with their corresponding size price and layout details. Also, since vacancy status changes in real time, the search requires ongoing verification of which new listings match your criteria and which spaces have already been leased. When there are multiple brokers managing your search, this process can become scattered, stressful and inefficient.
Hiring one broker gives you a single point person who will conduct research for you, update you on listings as they come on the market, pre screen for spaces that match your desires and keep record of everything you have seen. With one agent who has a clear sense of your likes and dislikes, you have the best odds of seeing progressively better space as they zero in on the right office for you.
How do I determine what size space my company needs?
The size of space your company requires is determined by the number of employees as well as the amount, layout, and size of the offices, reception areas, conference/ meeting rooms, pantry and common area necessary for proper work form.
Our office space calculator can help you to clearly determine the best size range for your company.
What is the difference between usable square feet and rentable square feet?
Useable square feet are the actual dimensions of the physical space. Rentable square feet are the usable square feet plus that space's portion of the building's common area. Common area can consist of hallways, public bathrooms, stairwell and lobby. The difference between usable and rentable square feet is called the Loss Factor. Loss factors vary between buildings, but 30-35% has been the recent average in New York City. For example, a space marketed in as 1,000 rentable square feet will yield approximately 700 usable square feet.
Please use our office space calculator to determine the best useable and rentable square feet for your company.
How negotiable are rent prices?
A landlord's price flexibility is influenced by a number of factors. These include the company's financial history, how long the prospective tenant has been in business, whether any work will be done to the space, length of the proposed lease term and how long a particular space has been on the market.
What do landlords offer to attract commercial tenants?
Landlords may offer free rent to a perspective commercial tenant who has upfront plans to invest in improvements to the space.
Landlords are also willing to incur the expense of making their own improvements to the space according to the tenants' specifications if they see the prospect of a long term relationship.
Will the landlord offer more to a tenant if they sign a longer lease?
Landlords typically offer more concessions for longer leases. Longer leases provide landlords with more time to amortize the cost of up front concessions such as free rent and construction.
What neighborhoods in Manhattan offer the most affordable office space?
As of the last quarter of 2009, rents in Class C loft buildings in Midtown West and Chelsea can be as low as $25.00 per Rentable Square Foot. Lower Manhattan offers the best value for Class A and Class B office space, with rents starting just under $30per Rentable Square Foot.
What is the difference between Class A, Class B and Class C buildings?
Class A Buildings typically offer:
? Lobbies that are attended 24/7
? Cleaning services included in the base rent
? Property management on premises
? A high level of capital improvements
? Air conditioned lobbies and common areas
? Advanced fire alarm and security systems
Class B buildings are similar to Class A properties with these differences:
? Less upscale lobbies and common areas
? Few lobbies are attended 24/7
? Cleaning services are not included (with the exception of Downtown Manhattan)
Class C buildings:
These properties are usually former warehouse or manufacturing buildings that have been converted to office use. The lobbies run the gamut from simple and modest to bare bones and industrial. Some C class lobbies are attended. Class C buildings are the most affordable properties in New York City.
How do I evaluate if my broker is doing a good job?
Evaluate the performance of your broker based on the following criteria:
- Do they return my calls in a timely fashion?
- Are they on time to all appointments?
- Are they listening to my needs?
- Have they helped to educate me on current market conditions?
Other questions? Contact us.
|
