Finding the Perfect Office Space in New York City
Many brokerage websites claim that their firm will find you “The Perfect Office Space.” As a successful 30-year industry veteran, I am sorry to say that unless you have Jeff Bezos or Elon Musk type money, and cost is not a factor, the perfect space is going to be a series of well-thought-out business decisions and compromises.
Any broker can run a space search. That’s easy. The skill is working with the client to educate them on the market and asking the right questions in order to fine-tune the requirement. The requirement is often fluid as once the client better understands the market and receives feedback from their colleagues, the search is adjusted to better reflect the true needs and priorities.
Three Key Categories to Consider
I always begin by discussing the following three categories: The Financial, The Operational, and The Qualitative.
1. Financial
The financial considerations are not limited to just rent. The amount of construction required to make the space work is an enormous consideration in a lease negotiation. How much is the work going to cost, and how much of it is the landlord willing to pay for? The cost of the work is going to significantly impact the economics of a deal.
Other financial considerations in a lease negotiation include:
Annual escalation
Real estate taxes
Electric
Office cleaning and carting
Miscellaneous charges such as water and sprinkler
➡️ For insights into understanding lease costs, read Deal Economics in a NYC Lease: What You Need to Know.
2. Operational
I don’t care how beautiful and well-priced a space is—if your business cannot operate in the space efficiently, then the space simply does not work. End of story!
Key operational considerations include:
Is the space the right square footage?
Does the space allow you to create your desired layout?
Does it foster collaboration and productivity?
Does it allow for future growth?
What are the hours of heating and cooling?
How old is the air-conditioner?
What is the fixture count in the bathroom?
Your business will likely remain in a space for 5–10 years, so all these items need to be well thought out from the start, or those 5–10 years will be very long.
➡️ For tips on ensuring operational efficiency in office spaces, check out How Office Space Efficiency Reduces Costs and Waste.
3. Qualitative
Does the location work well for all employees? How close is it to mass transit? Is it easy for clients to visit you or for you to visit them? Are there good dining and takeout options nearby?
Other qualitative factors include:
Building amenities
Reputation of the landlord
Renovations (lobby, elevators)
Light and views
Getting this right will make everyone much happier working in the office.
➡️ For insights into evaluating amenities when renting office space, explore 4 Factors to Evaluate When Renting an Office Space in NYC.
The Role of an Experienced Broker
Working with an experienced broker to help navigate this process is essential. The perfect space may not be completely apparent in the beginning, and the first preferred option may ultimately not make the most sense when further evaluated.
The key takeaway should be: there most likely isn’t a perfect space. There is a space that makes the most sense for your business when taking into account all of the above considerations.
➡️ For guidance on why hiring an experienced broker matters, read Should a Company Hire an Exclusive Broker?.
I would be delighted to discuss your occupancy plans and provide my thoughts.
Paul Walker
📧 Paul.Walker@cbre.com
📞 212-984-7117