Firstly, New York is one of the ten most populous places in the world. There are close to 9 million people all densely packed in a mere 300 square miles of space. Ridiculous, isn’t it? New York is known as the center of globalization with world-class institutes spanning different sectors such as the arts, entertainment, finance, and many others.
The city has a GDP rivaling many first world nations on the planet. There is a wide range of business ventures with venture capitalists calling this city home as well as sole proprietors. Therefore, you understand why everyone is gushing about The Big Apple.
New York City is extravagantly equipped with over 500 million square feet of rentable office space. Now, what is the cost of doing business in space terms here?
Looking at the high end and the class B buildings
Well, this will depend on your location amongst many other factors. According to public data, the typical asking price for renting an office space in New York City is $75 per square foot. This can also shoot up to $84, particularly for elite or high-end locations.
On the other hand, there are alternatives for potential office owners seeking affordable rent with over 150 million square feet of cheap office space. These Class B options cost lower than $60 for each square foot of available space.
Due to the multiplicity of choice in the city, tenants can go for office sublease as a viable option for a rapidly growing business looking for flexibility.
office space NYC has continued to rise due to the insatiable demand by diverse industries that have made this city a sweet potpourri of commerce. Lease prices are perpetually soaring despite sublease options striving to introduce stability into the average price of rent.
Compared to other cities, New York is arguably the most expensive state to lease office space with the drive in demand as well as competition at an all-time high.
Your Borough is consequential
The price you pay for your office space will depend on your borough with different boroughs paying substantially different rent per square feet. The retail industry has the highest disparity with the Upper Fifth Avenue charging as high as $4400 per square foot.
The same square foot goes for $10 were you to site your store in St. George, Staten Island. White collar workspace has the smallest disparity with $82 in Midtown compared to $22 in the Bronx.
Size matters as well
The predominant problem with renting business space in New York, however, is the size. Landlords particularly hate dealing with tenants occupying small spaces, particularly those less than 1000 square feet. Small spaces equal small business (think mom & pop store) thus translating into greater risk. This is why small spaces get a higher premium than most.
Remember that the features or amenities attached to the building will inevitably factor into the cost of rent with elevators and private restrooms costing you aplenty.
Rent in New York has massive disparities with much consideration on the block. You would also need to factor in the amount of footage, whether it is Midtown or Downtown or wherever. However, if you evaluate utilities, taxes, and other miscellaneous expenses, you can expect to pay between $3000 and $12000 per month for your business.