Frequently asked questions
Who pays a broker’s commission in a New York City office lease?
The landlord will typically pay both brokers commissions in a direct lease, and the sublandlord will typically pay both brokers commissions in a sublease.
What’s the difference between usable and rentable square footage?
See our explanation here.
Do I need to hire an architect? When is the best time to retain a firm?
The best time to retain an architect is when you are first evaluating your space needs. An architect can help you with a space program, which will tell you how much space you actually need, and allow you to better evaluate which building options are best for you and your company.
Why do I need to hire a broker?
An experienced broker who knows the market will not only be able to help you figure out exactly what it is you need, but also knows market rates and trends and can help you negotiate the best deal. Some brokers distinguish themselves by leading the entire process, including assisting with hiring of other consultants, collaborating with the client’s attorney towards negotiating a thorough document, and by ensuring the other project vendors (contractors, furniture, IT, movers) deliver the job on-time and on-budget.
A broker will be able to help tenants and landlords understand and evaluate all factors that need to be considered when making leasing decisions.
How are prices quoted?
Prices are typically quoted as dollars per square foot per year. For example, a 20,000 SF space that is $52 PSF would be 20,000 x $52 = $1,040,000 per year or $86,667 per month. Most New York City office leases are quoted as a gross rent, which includes most operating costs except for Electric.
How long of a lease do I need?
There are many factors to consider when deciding how long of a lease term you will need. For example, a rapidly-growing company will likely want a shorter term in anticipation of soon outgrowing their space. A company who is looking to invest a good deal of money into custom-building their office will likely want a longer term in order to recoup their expenses.