The Most Affordable Neighborhoods for office space in NYC.

New York City office space with a budget-friendly price tag? It sounds like an urban legend, but I’m here to tell you it’s possible. While the city is known for its sky-high rents, strategic choices in specific neighborhoods and even particular blocks can unlock significant savings. This guide will shine a light on where to find the best value.

Times Square South (Formerly the Garment Center)

For businesses prioritizing convenient Midtown access and robust transportation links, look no further than the district once known as the Garment Center, now rebranded as Times Square South. This area stretches from midway between Fifth and Sixth Avenues westward to Eighth and Ninth Avenues, and from 34th Street north to 40th Street.

Interestingly, this district was historically infamous as the “Tenderloin” – a vibrant, often illicit, entertainment and red-light district in the late 19th and early 20th centuries. As the garment industry boomed and buildings for factories and showrooms sprang up, the Tenderloin gradually faded, with the Garment Center becoming the city’s fastest-growing construction hub by 1926.

In the 1990s and early 2000s, many of these classic loft buildings, originally housing showrooms, manufacturing, and warehousing, began their transformation into modern office spaces. Today, many of these properties are highly renovated and boast some of the most competitive pricing in the city. You’ll find particularly attractive deals from 35^th to 39^th streets between Seventh and Eighth Avenues, along Eighth Avenue itself, and even slightly east between Fifth and Sixth Avenues.

This neighborhood may not exude the same high-end elegance as the East Side, and its retail and dining scenes might not be as trendy, which directly contributes to its discounted rates. This discount became even more pronounced post-COVID as companies sought upgraded buildings at reduced prices. Landlords in Times Square South are often willing to “build to suit” and offer competitive free rent periods, making it an excellent value proposition.

South of Penn Station: A Revitalized Commuter’s Dream

Similar to the Garment Center, the area south of Penn Station (roughly 28th Street to 33rd Street) historically housed industries like furriers and flower businesses. For a long time, it lacked a strong identity as an office neighborhood. However, recent developments have dramatically reshaped its appeal.

The new Penn station, magnificent renovations of 1 & 2 Penn Plaza, the addition of the new Virgin Hotel, and other neighborhood enhancements have infused this area with a vibrant energy and an abundance of amenities. The office buildings here are generally of a similar vintage to those in the Garment Center and many have also undergone extensive renovations. Pricing in this revitalized district is typically more affordable than Chelsea to the south and largely on par with Times Square South to the north, making its proximity to Penn Station a major draw for commuters.

East 30s: Quiet Convenience with a Discount

Once a hub for accessories and lingerie, the East 30s still retains some of its fashion roots, though not enough to fill all available properties. This neighborhood benefits from a “discount” due to its slightly less direct access to major transportation hubs.

However, its convenience should not be underestimated. The East 30s is easily walkable to Grand Central, Penn Station, and the Port Authority, offering excellent connectivity. This blend of accessibility and slightly lower pricing makes it a compelling option for businesses seeking a quieter, yet still well-connected, Midtown presence.

FiDi/Lower Manhattan: Historic Charm Meets Modern Value

Lower Manhattan, commonly known as FiDi (Financial District), is a massive submarket encompassing nearly 50 million square feet of office space. This area offers a contrast, featuring brand-new Class A office towers like the Freedom Tower alongside numerous properties built in the early 1900s.

It’s in these older properties where the real value lies. Rents in these buildings are, on average, $10-$20 per square foot less than their Midtown counterparts. Downtown lost some favor after COVID-19 as many companies prioritized locations closer to Grand Central and Penn Station for their employees’ commutes.

Despite this shift, downtown buildings are every bit as renovated and offer the same level of service and amenities as their Midtown counterparts. With a surge in residential conversions, FiDi continues to evolve into a 24/7 neighborhood, making it an increasingly attractive and cost-effective place to work.

If you would like more information on any of these areas or any specific property or to discuss a requirement, please contact me.

Paul Walker 212-984-7117

 Paul.Walker@cbre.com

(Paul Walker | LinkedIn