FAQ

FREQUENTLY ASKED QUESTIONS

 

How is a broker’s commission paid in commercial real estate? 
In New York City commercial office leasing, it is customary for the broker to be compensated by the building owner or management company. This means any company seeking commercial space can utilize a commercials NYC broker’s services free of charge.

Why should I only work with one broker? 
Changing offices can be a time consuming process. It often involves extensive listings research, multiple location visits during the work day, tracking and organizing all of the spaces viewed along with their corresponding size price and layout details. Also, since commercial vacancy status changes quickly in Manhattan, the search requires ongoing verification of which new listings match your criteria and which spaces have already been leased. When there are multiple brokers managing your search, this process can become scattered, stressful and inefficient.

Hiring one broker gives you a single point person who will conduct research for you, update you on listings as they come on the market, pre screen for spaces that match your desires and keep record of everything you have seen. With one agent who has a clear sense of your likes and dislikes, you have the best odds of seeing progressively better space as they zero in on the right office for you.

How do I determine what size space my company needs?
 The size of space your company requires is determined by the number of employees as well as the amount, layout, and size of the offices, reception areas, conference/ meeting rooms, pantry and common area necessary for proper work form.

We can advise you on how to determine the best size range for your company.

What is the difference between usable square feet and rentable square feet?
 Useable square feet are the actual dimensions of the physical space. Rentable square feet are the usable square feet plus that space’s portion of the building’s common area. Common area can consist of hallways, public bathrooms, stairwell and lobby. The difference between usable and rentable square feet is called the Loss Factor. Loss factors vary between buildings, but 30-35% has been the recent average in New York City. For example, a space marketed in as 1,000 rentable square feet will yield approximately 700 usable square feet.

We can advise you in determining the appropriate rentable size range to search to yield the usable square footage you actually need.

How negotiable are rent prices?
 NYC landlord’s price flexibility is influenced by a number of factors. These include the company’s financial history, how long the prospective tenant has been in business, whether any work will be done to the space, length of the proposed lease term and how long a particular space has been on the market.

What do landlords offer to attract commercial tenants? 
Landlords may offer free rent to a perspective commercial tenant who has upfront plans to invest in improvements to the space.
Landlords are also willing to incur the expense of making their own improvements to the space according to the tenants’ specifications if they see the prospect of a long term relationship.

Will the landlord offer more to a tenant if they sign a longer lease?
 Landlords typically offer more concessions for longer leases. Longer leases provide landlords with more time to amortize the cost of up front concessions such as free rent and construction.

What neighborhoods in Manhattan offer the most affordable office space? 
Contact us for up to date information on neighborhood specific rental rates.

How do I evaluate if my broker is doing a good job? 
Evaluate the performance of your broker based on the following criteria:
- Do they return my calls in a timely fashion?
- Are they on time to all appointments?
- Are they listening to my needs?
- Have they helped to educate me on current market conditions?

Other questions? Please feel free to contact us at Red Real Estate!

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