Christmas Make Money

Commercial Real Estate

By Rotem Elias       February 8, 2014

 

rotem2 (2)I am pleased to introduce Rotem Elias, a BizBuzzNYC Expert for a discussion on the NYC commercial real estate markets

Rotem was born, raised, schooled in NYC and has a bachelor’s degree in marketing.  He is a licensed real estate salesperson for BSD Realty, a prestigious commercial and management brokerage firm, in the Flatiron District.

As a consummate New Yorker he knows the city’s neighborhoods and markets like the back of his hand, providing full representation for you from your first meeting through closing and will provide you with the strong negotiating skills you deserve in your real estate transaction.

 

Office Rent

It can be aggravating and tiresome to find an office whether it be your first time or fifth. It’s hard to know where to start so here are some tips to help you through the process.

KNOW YOUR BUDGET

The first thing you have to do is figure out what your budget is. Budget includes how much you are able to pay per month without breaking the bank and any other expenses such as furniture, computers, internet, etc. that you’ll have to spend when moving in. If you know exactly how much money you have, it will make the process ten times easier for you. I can’t tell you how many times I’ve shown office space to a client and they never actually checked what their financials were. It can be a shock as to how much you actually have to spend (both good and bad). Additionally, have financials ready to show such as bank statements and such so that the landlord can see you’ll be a reliable tenant who pays on time.

 

 

 

WHAT SIZE?

Usually listings are advertised in square footage so estimate how much you’ll need. Now, don’t get discouraged if you can’t find something within your size requirements. For example, let’s say you think you need 1000 square feet. Sometimes something smaller, like 800 square feet, will be great if it is built out right. Sometimes you’ll see an office with the right square footage or larger listed and it won’t be what you need because it was built out weird. One time I saw an office in some weird trapezoid shape and the square footage did not tell the full story at all. Just remember, be flexible with size requirements because build out is also important.

THE BUILDING

Buildings in NYC are categorized into Class A, Class B, and Class C. A is the best, B is in the middle, and C is the worst. Now the thing is, Class B and Class C buildings are not bad at all. They are just older and don’t have the amenities that Class A buildings have such as a doorman and things like that. It’s worth it to find out what type of class the building is categorized into. Class C is cheaper than Class B which is cheaper than Class A. If you are a startup businesses go for the older buildings because rent will be cheaper and you don’t need all the amenities that Class A buildings provide.

AREA and the issues involved

Do you want to be close to home? Is being near a subway preferable? Is a quiet area better or one where you have hustle and bustle all around you? Would you like to be around similar companies or does it not matter for your business? These are all considerations you have to think about when looking for an office.

For example, tech and media companies have been moving to the financial district (downtown Manhattan) within the past year in large numbers. Why you ask? The financial district has some of the cheaper rents in the city now. A lot of subway trains go there so it’s an easy commute. Lots of the creative people who work at these companies live in Brooklyn and downtown Manhattan is just a few stops away as compared to other parts of Manhattan. If your company falls into the tech category this neighborhood is probably your best bet as similar companies are in the area and the access to trains and cheaper rent cannot be beat.

A lot of people would love to work a few minutes from home. A record number of people who are starting out now with a new business or who are expanding their business, live in Brooklyn and would like to work there. And I can’t blame them. The problem is that office space in Brooklyn is in very limited supply and there are almost no vacancies. Now I’m not saying to just give up. Do the research and see what you come up with, but sometimes in times like these it is worth it to broaden what your idea of the best place to work is so that you find something available and are not left out in the street.

TIME AND BROKERS

Now all this takes time and let’s say you do not have it. Focusing on your business is more important than spending hours researching what space is available, how much it actually costs, and calling the landlords or brokers who have the listing. My suggestion is to hire a broker who you like, understands your needs, and has knowledge about the area you would like to work in. The benefits are that they do all the work for you, negotiate the lease on your behalf, and get paid by the landlord of the building if the lease is accepted. Therefore you pay the broker nothing for his services except maybe for a thank you and a referral to your friends. The con is that the broker you choose could not get back to you when you call, not be knowledgeable about the market, and could just be a bad person to deal with. That’s why you should only work with someone you know and trust or that comes with good recommendations. Time will be saved if you use a broker.

 

BIGGEST TIP

DO NOT BE AFRAID TO ASK QUESTIONS AND NEGOTIATE!!!

REMEMBER: LANDLORDS AND LANDLORD BROKERS HAVE TO LEASE OUT SPACE TO MAKE MONEY AND THEY WANT YOU TO SIGN A LEASE.

Negotiating the best deal for you at the best price

Rotem Elias

Licensed Real Estate Salesperson

BSD Realty

646-853-2351

Property Listings- Click Here: http://www.rotemsells.com/

http://bsdequities.com/

www.linkedin.com/pub/rotem-elias/2b/904/8a9/

google.com/+rotemelias1

Thanks again,
Rotem Elias

 

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