Negotiating your office lease?

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June 2023

What's in a negotiation?

"If you don't ask, the answer is always no!"

In a Tenant's market, most will focus their fight on a better rent and while there is certainly much to be won there, here are four select points we thought to highlight representing some of the other items on the table in today's market:

1. Face Rent vs. Net Effective Cost

As explained in last months newsletter, the spread between the quoted rents and net effective rents that tenants are paying (net of free rent and other goodies that Landlord’s are offering to buy up higher rents) has continued to expand.
A $65 per square foot rent is very different than a $65 per square foot rent with 18-months free. Catch my drift?

2. Privileges

Historically reserved exclusively for large companies, many of these offerings are are now on the table!

Want your company’s name on the entrance? Ask!
Overtime air-conditioning?
Building lobby upgrade?
Private bathroom installations?
Exclusive roof terrace access

3. Options

Flexibility is as important as ever and it only serves as a benefit to have options in your lease should your business needs change (terminate, expand) or ultimately remain the same (renew). While smaller tenant's may be told to "go fly a kite" in a stronger market, Landlords are focused today on nailing down any interested tenant they can.

4. Extra Items

Tenant expense items have also been common from Landlord's as a way of building up the ever important face rent of their leases and in recent months we've arranged or negotiated for items such as:

Furniture
Private bathroom installation
Elimination of ancillary charges
Free swing space until the completion of a build out

Look beyond the rent, get educated and get a great deal!

Until next month,

Ben

P.S. We're hiring! Here's why

Ben Blumenthal
Principal Broker | Noah & Co.

The Best of June

Meta joined the growing list of firms ordering employees to return to the office, a trend that has pushed NYC's office occupancy rates above 50% for the first time since the pandemic began.

So where is the latest action?

Long-term Commitments

- Christie Lites Broadway is moving into new digs at 1560 Broadway

- 1333 Broadway will be home to Rising Ground for 30+ years

- National Academy of Design relocating to ~ 8k SF in Chelsea

Garment District Goodies

- E-commerce firm Veyl Ventures locked in 4k SF at 251 West 30th

- Timberlake Studios leased 5k SF at 545 Eighth Avenue

- A 10-year deal will keep Amsale at GFP's 318 West 39th St.

Renewals & Expansions

- West Publishing extended its 46k SF lease at 3 Times Square

- Financial advisor John Lang is staying put at 485 Madison