By Shantanu Mohan
January 31, 2017
Better to Share Space at WorkSocial than Rent in a Building where you are pouring money for the benefit of your landlord.
Rising prices of real estate makes finding office space as an entrepreneur tricky.The base price of commercial real estate is not the total price you may end up paying. The cliche, location, location, location has changed. From to service, service, service.
Questions to Consider
Why am I renting Office Space? | Where Are my customers? | Where are my competitors? Where are my Employees? How will I have client meetings, group huddles, team meetings and calls. How much active versus passive space do I need.
Currently, the most popular New York City neighborhoods for startups include Union Square, NoHo, Silicon Alley (Flatiron, Chelsea, and SoHo), as well as Brooklyn’s tech triangle of DUMBO, Brooklyn Navy Yard, and Downtown Brooklyn. The most expensive office space rentals are in Midtown and the Financial District. However, Jersey City is proving to be the best option for startups.
Before you begin your search you should determine what type of office you need. How big do you want the space to be? What are your top three neighborhoods? Neighborhood selection is becoming extremely important as it lends to your business’ image and potentially to synergies with related businesses. The fashion industry still likes to be close to the Garment District whereas the area around Union Square has seen a large increase in technology startups. What is your budget? Do you want a traditional space or a creative loft? Try to create a survey for yourself (if you have a broker he/she will create one for you) and check off what different aspects you want your office to have. From the survey, you can then begin your tour of different office spaces.
After you have toured the many different office spaces that each neighborhood has to offer, the selection process begins. You should offer terms to the landlord/broker of the building in which you would like to rent space. If possible, submit offers for multiple spaces at the same time—just like negotiating a job offer, you have more leverage if you have others vying for your attention. Some of the terms of the deal you should pay close attention to include:
When negotiating your lease, we recommend having a broker and lawyer on hand to ensure the lease you are signing is the most beneficial to you. The New York City real estate market is a lucrative business and landlords know this. Be sure to hire someone you trust to help make that transition.
If you aren’t yet at the stage of your small business where you can rent an entire office space then sharing an office space is a great alternative. Sharing an already established office space works well for startups with small teams in place because you get a good bargain. As you can imagine, there are countless ways to find someone who is willing to share their office space in New York City