Compared to Loft buildings in Midtown South, Class A buildings in Midtown NYC offer Real Value

Something very interesting is occurring in the Manhattan commercial office space market: until recently, rents in class A office buildings all over the city commanded a big premium over rents in class B and C loft buildings in Midtown South. Conventional office buildings, often landmark like The Graybar Building, One Grand Central Place or 370 Lexington Avenue would cost business tenants up to 40% more to lease than side street loft buildings in neighborhoods such as Madison Square, the Flatiron District and Chelsea. Chelsea, Flatiron District No Longer Inexpensive But this situation has changed dramatically. Today, you may pay just as much to lease offices in a former industrial building in The Flatiron District as for an office rental in… Continue reading

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Posted in Manhattan Office Space.

Like death and taxes, there are certain expenses that can’t be avoided. For instance,  if you you have a New York City office space rental, your commercial lease is going to have an escalation clause and your rent will increase every year. There is no getting around that. To understand why this is inevitable, place yourself, for a moment, in a landlord’s shoes. Because the cost of building services, personnel, energy and building maintenance go up every year at a pace that matches or exceeds inflation, a landlord’s only option is to recoup increased costs by adjusting rents. How Much More Per Year? Landlords will figure out the amount of the increase in different ways. –Fixed annual percentage increase (most common)… Continue reading

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Posted in Commercial Leasing 101Understanding Commercial Lease Language.