|
New York Office Space For Your Business?
New York Office Space Q&A
- Brandon Sternberg
Finding an office is a difficult task for every business owner. The location of an office can make or break a business. For example, if the location of an office is not easily assessable by a firm’s customers, a firm might have a lower customer retention rate. In addition, the type of office and the ways of financing an office are important considerations for any business owner. When reading the following questions, it is important for each business owner to ask themselves, “Is my office the right office for me?”
How to find office space in
New York?
The best means of finding an office space starts with word to mouth
communication/marketing to find an appropriate realtor. A realtor can
be found on the internet, but one found on the internet may lack credibility.
If one was to use the internet to find a realtor, one might look at
a realtor review website or any realtor association website such as
www.cityfeet.com or www.costar.com. By finding a realtor on a certified
website this increase the credibility of the firm thus increases your
chance of being provided with above average service. When choosing a
real estate agent, you want to look for one who strives to maintain
long-term relationship and acts in the best interest of the seller.
What type of office space is
right for you?
It is essential to asses your business’ current needs when selecting
an office. Number of employees, scalability/ upgrade costs, infrastructure
costs, utility costs, maintenance costs, etc. should all be considered
when calculating the total cost of ownership to determine what office
space fits your business model. In addition it is important to pick
a building that fits your available capital. Picking a capital intensive
office may cause your firm to enter financial distress if the firm does
not earn a positive ROI. Essentially as a business owner you want to
pick an office that meets your firm’s business model and provides
ample space for an increase in growth.
Lease vs. Buy Office Space?
Once a company picks a building, the next step is to determine how to
finance the building. A company can either lease the building or decide
to buy the office with either a mortgage or using investor supplied
funds. The decision to buy or lease a building depends on the life stage
of the firm. If your firm is relatively new and is in the early growth
stage it would pertinent to lease the office space. As a business owner
you do not want to be financial responsibly of an asset (in this case
the office space) if the firm decides to upgrade/downsize due to unstable
growth/sales. If you purchase an office there is the potential to earn
an economic profit if you decide to sale/lease the asset in the future
(This assumption is based off a rising price environment excluding,
inflation, taxes and or capital gains).
An advantage of buying an office is it reduces your firm’s variable costs in the long-run. When you purchase an office and eventually pay off the debt outstanding your firm will incur lower variable costs. Having low variable costs can protect your firm from entering financial distress when sales decrease.
When deciding to buy or lease office space consult with your realtor
and or accountant and discuss the tax benefits of owning an office space
vs. leasing an office space.
Which neighborhood is right
for your business?
Finding an office that is assessable via public transportation is one
of the most important determinates in deciding where to locate your
business. It was reported by the U.S. Department of Commerce that in
2004, 1.9 million or 55% of New York City’s population commutes
to work using public transportation. This statistic indicates that accessibility
by public transportation is a key determinate in deciding where to locate
your business office. The location of your office needs to be assessable
by not only yourself, but also by your employees and your customers/clients.
The location you choose should have existing professions in the same
industry, thus providing you with an opportunity to penetrate the market.
As a business owner many of the preceding questions might be difficult
for you to answer, but with the help of a realtor one will have a better
understanding. The location and type of office are important considerations
and if strategically planned can positively affect your business.
To request Broker assistance with Manhattan Commercial Real Estate For Rent or Sale: Apply Here
