Here are 3 Ways to Save Your Business If Your Lease is Crushing You
Gregg Cohen - Corporate Real Estate Specialist
At Cresa, I help companies with their real estate
It is heartbreaking when I get that call from a client or friend who has Manhattan office space and the call goes something like this...
“I absolutely love my office. But I am the only one who is using it right now? My employees do not feel comfortable coming back at the moment, but I am still paying my rent every month for a space that is not being used. Throughout this whole event, for the last 9 months, we have been paying our rent on time. We got the PPP money in the beginning, which helped for a while, but now it has all been spent, and our cash burn is just too high. I keep on hearing about friends or people in my building who have renegotiated their leases, so what can I do?”
Does this sound familiar? If yes, today's blog is for you! Click here to learn how Deferrals, Abatements, and Lease Extensions can be utilized to your advantage and stop the money bleed from your office lease.
Best deals by the foot
Boutique Third Avenue building, home to private equity firms, hedge funds, and family offices with a solid ownership and a blue-chip sublessor. This space has a conference room with 4 offices and open space for 6-8. The floorplates are small so only a few tenants on each floor. Deal in the high $40’s plus it’s turn-key ready without any out-of-pocket upfront expenses.
292 Madison Avenue | 6,000 sq ft
If the idea of your own full floor never sounded so good — look no further than 2 blocks from Grand Central. If you like brand new construction in never occupied space, look no further. A nice mix of offices (7) combined with open space for 20 with light on 3 sides. A deal can be done in the $50’s.
Want your own floor near Grand Central? This space is 6,500 square feet and comes fully furnished, wired, and available for 3 years. Deal around $60 which is great value for Grand Central with the privacy of your own floor and the flexibility of a shorter-term sublease without any upfront expenses for furniture or wiring.
I call this a sleeper building. It’s a prime location across from Grand Central. With a side street address, it doesn’t get the recognition it deserves. A deal in the $40’s can be done for the beautifully built out space with an open area for eighty (80), four (4) offices. $30+ LESS than direct deals in the building.
No appetite for a 4-5-year lease? Then how about 1 year?! I was hired by a private equity firm to sublease this corner unit with a TON of light. 6 offices and 1 conference room on a very small floor with only one other tenant. LOTS of money was spent furnishing this space. It would be ideal for a small law firm, accounting firm, hedge fund, or investment firm. Come on in and have a look. There’s a virtual tour attached here.
800 Third Avenue | 15,000 sq ft
Name your price. Calling all Law Firms!!! This tenant has a law firm build-out with tons of offices. Third Avenue corridor with access to the E, F makes it just as convenient for those coming from Penn Station as it does from Grand Central.
Interested in finding a below market sublease? Contact me here.
It's a beautiful day in the neighborhood
Upgrades: Some tenants are using the current environment as an opportunity. Some tenants with leases expiring are using the opportunity to move higher in buildings and into better buildings:
New York City’s Top Office Addresses Draw Bargain Hunters Amid the Pandemic
Headlines:
And for what it's worth, while the whole "end of the world!" ... "death of office space" feels played out, it could benefit you. I think if you are a tenant with a lease expiring soon you should take advantage while the sentiment is so negative a la headlines like:
Manhattan’s Office Leasing Taking A Dive
And...
Midtown is Reeling. Should Its Offices Become Apartments
Buy the dip! As they say! Share the knowledge
Gregg Cohen
Principal
212.687.4329 direct
917.684.1764 mobile
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