Renting office space in Manhattan is an important step in growing your business, whether you’re moving to a new location or expanding your current location. But commercial leases can be complicated, with a variety of conditions and contingencies that have legal and financial implications for you and your landlord — and the future of your business.
Things you should know when renting office space in Manhattan
If you’re planning to lease or rent office space in Manhattan and NYC, Wall Street movers will help you find the perfect office space to lease for your business! They have a lot of renting office space in Manhattan. However, let’s see what things you should know before renting it.
Figure out your budget
It is not a secret that renting office space in Manhattan is expensive. Before you even start looking for the location, local movers in Manhattan NY recommend you to set a budget and stick with it. You might have the most perfect shop or office but, if you’re going to be down in debt, your business is gonna suffer. Figure out the numbers and set a working budget with minimum and maximum allocations.
Rent is only a small part of your lease expenses. Keep in mind that there are lots of things to consider such as furniture, local permits, renovations, business insurance, sanitation, new equipment, utilities, and much more. When renting office space in Manhattan, be specific on what is included. Does it include an internet connection? What about the water bill?
- Include extra expenses in your budget such as cleaning and maintenance.
- Plan carefully, a lot of many expenses are going to stunt the growth of your business.
- Lease the essentials, and make sure you don’t rent more space than what you actually need.
Choose the best location
Location is still important in today’s high-tech world. It’s the life of your business and the heart and soul of your trade. Depending on your industry, commercial movers Manhattan recommends you choose a commercial space with high foot traffic. These include near schools areas, major establishments, government spaces, shopping malls, or crowded residential areas.
Your location needs to be accessible to everyone including yourself, your team members, and the customers who are going to visit your office or shop. Is the public transport near it? Is it easy to find? What are the nearby major landmarks? Are there any financial institutions located nearby such as banks within the vicinity? Is the office space accessible through a major road or is it hidden in the back streets?
Here are some tips on choosing the best location for your office space:
- Check out the nearby public amenities such as bus stops or train stations.
- Review the establishments in the area that may affect your business.
- An area with a big population might give you a chance to hire potential talents.
While the monthly rental price may look good on paper, it may not look affordable once you figure out other expenses. Here are some additional costs that are going to fall under your responsibility:
- Security Deposit: It’s usually made up of 1-6 months of rent. Depending on the landlord, the payment can only be accepted in cash or a letter of credit. Be ready to hand over a P&L and balance sheet or bank statement to back up your financial claims. Ask the landlord to sign an NDA if you’re worried about sharing this information.
- Attorney Fees: Sign a lease after it’s been reviewed by a qualified attorney. If the lease isn’t big enough, they may even work on a fixed dollar amount.
- Furniture: If you’re planning on outfitting your office with lawn chairs and tv trays, you are going to need to invest in some furniture. Whether you decide to go with something like Ikea or a used furniture vendor, make sure you know your costs before signing.
- Parking: If you’re in a very urban area, you are probably going to have to sign a contract with a nearby garage. Even though discounts are often offered in bulk, this can be pricey.
- Telephone/Internet: Is there an included phone line? Does the building offer internet? If not, make sure you consult with providers early. Expect to spend about $100 per data drop. Also, don’t make sure to include your break area and conference room.
- Commercial Liability Insurance: Make sure to secure a policy that covers your business to operate in office space. This must be done before move-in.
- Tenant Improvements: Did you find a space that’s perfect, except for one little fixer-upper? Figure out how much those improvements are going to cost and decide if it’s really worth it (probably not).
There are lots of expenses that go into renting office space in Manhattan. The actual rent is only a part of it when it comes to the majority of properties. Those extra expenses can really add up if you don’t plan them in your original budget. Brokerage vice president for Office Services Group in Dayton, Ohio, Paul Miller, said that you need to make sure you understand what’s included in the quoted rent. Does the Landlord want you to pay for your utilities? What about the phone and data? Snow and ice removal? He also said you need to make sure it’s clear, and that it’s spelled out clearly in the Lease.
Before you sign the lease, you need to factor in hidden costs or expenses that you may need to face down the line. That includes the actual space you will be able to use and the operating costs, including maintenance costs, electricity, potential rent increases, alterations, and repair costs. SoHo movers advise you to engage a lawyer to go through the lease with a magnifying glass so that you can talk about any contentious terms with your landlord before signing anything.
Renting office space in Manhattan is a decision that has long-term implications for your business. Before you sign the lease, it’s important for you to keep the points mentioned in this article to make sure that you have peace of mind after moving into your new office.