Don’t Leave Money on the Table

Don’t Leave Money on the Table

Greetings Manhattan office dwellers and business mavericks.

Sometimes we get notes from former clients letting us know that they loved their space so much that they opted to renew their lease rather than face the uncertainty of seeking out some place new. This is of course a great option for businesses that have not outgrown their space provided they have done one thing: actually checked what the current market rent would be for their own unit before signing a renewal.

Depending on when you entered your lease, the renewal rent you are offered by your landlord may be lower or higher than current market rent. If your landlord has not asked for a rent increase upon renewal, don’t automatically assume you are getting the best deal.

If you started your lease in a red hot market and have been there for a while, after year over year escalations and/or ‘rent bumps’, it is possible to arrive at lease renewal paying a rent that outpaced market increases during your lease term. In English: Your rent could be too high.

Conversely, if the market has left your rent in the dust and the landlord is asking for a higher renewal rate – it helps to know how this new rate compares with current asking rents. Access to real and accurate info can help you make these assessments and avoid leaving money on the table!

Which leads us to Red’s 10th year anniversary tip of the month: You can have broker representation even if you want to stay in your current space. See below.

For those feeling the squeeze of low vacancy in the city relief may be in sight. See below for news on upcoming developments in Manhattan commercial space.

For in depth perspectives as well as an insider view of the world of Manhattan mid-sized and small business leasing, visit our frequently updated blog and our twitter feed.