New York City is probably the most iconic city in the world when it comes to business. As the saying goes, “if you can make it here, you can make it anywhere.” One intimidating aspect of trying to get your business going in the city is navigating the commercial real estate landscape and the several hurdles to finding your perfect space. Let's look at some of the issues that small business owners can run into when trying to find office space in NYC.
Commercial real estate owners are not generally interested in renting space to clients who cannot commit to at least 3 to 5 years in a commercial space. Many commercial leases are for longer commitments, sometimes ranging from 5 to 10 years. These commitments can be hard for businesses who are planning to grow or simply have uncertainty about their business’s needs in the coming few years.
Proof of financial stability is a large part of the qualification process once you’ve found a space that meets your needs. Landlords want to be certain that you not only plan to stay in the space for the duration of the lease, but that you will be able to pay throughout the lease. They need to minimize their risk of renting to clients who will not be financially viable down the road. Demonstrating the level of financial strength necessary to acquire a commercial space in NYC is not possible for many small businesses.
One of the biggest hurdles to finding the right office space in NYC is the additional costs beyond the already high cost per square foot. There are generally additional fees beyond the base rent that must be factored in when calculating the total cost of a commercial space. Also, remember to consider the costs of furnishing, operating, and maintaining the space when calculating your budget.
These are just a few of the issues that people run into when trying to find office space in NYC. Many of these problems can be avoided with a non-traditional office space, such as a shared office environment. These settings are perfect for professionals and small business owners who need their own space, but also need a flexible environment that meets their needs.