New York City has a population of nearly 9 million people living in a densely packed metropolis of just 350 square miles. It is the most populated city in the country, and one of the most popular travel destinations in the world. The constant flow of people in, out and around this city make it the perfect location for any company that wants to be noticed, and be at the center of everything. Of course, not everyone can afford to establish themselves here, because it also one of the most expensive cities to live and work in.
Top Reasons Why Renting Office Space in NYC is So Expensive:
- Supply & Demand
- Accessibility to Public Transportation
- Top global commercial market
- Real estate investment competition
Supply and Demand Large corporations, both domestic and international, want to establish their headquarters in New York. Small boutiques and shops, world famous restaurants and nearly every popular franchise in the country are here. With so many corporations and individual entrepreneurs trying to find space in the city, and willing to outbid others to get it, demand is high. The stock of existing units is fixed and new construction limited, keeping supply tight, causing the prices increase dramatically. NYC is one of the fastest growing cities in relation to property cost, because it is also where many businesses are being established and relocated. The average price per square foot for commercial rentals is approximately $74 in NYC, while in other major cities like San Francisco it runs around $65, and $53 in Washington D.C.
Accessibility to Transportation The city not only has an extensive public transportation system, it also a hub for intra-continental and inter-continental travel via air and sea. Business travelers have access to three major airports, five medium-sized airports and well over a dozen small airports, as well as heliports and seaplane bases sprinkled throughout the city. New York is also a major terminal for transcontinental trains as well as the linchpin of the Northeast Corridor. Companies that import or export appreciate the city’s proximity to a major port. All these options make it simple for business executives to get in and out of the city faster and easier than in other cities.
Top Global Commercial Market Manhattan has the Hudson River, Central Park and is the location of the majority of the skyscrapers that make up the city’s majestic skyline. With so much to brag about, it has maintained its status as the most coveted borough in the city and many businesses dream of attaining enough success to be able to afford this area. Particularly desirable are the Upper East Side and Upper West Side neighborhoods, separated by world-famous Central Park. It is not unusual to see rents on Class A offices in Manhattan charging $90 per square foot, with the average being approximately $69. The cheapest metropolitan Class A office rentals in the nation are currently in Detroit at $21.77 per square foot. Obviously, a city’s reputation matters to companies who understand how important their corporate image is to their success.
Real Estate Investment Competition Historically, investing in property in New York City has been a profitable venture. Every investment company wants a property for their own portfolio. Adding to the competition are foreign investors, particularly wealthy Chinese companies and individuals. Factors intensifying the demand include: the lack of undeveloped land, increasing demand for commercial rentals space from companies around the world, the continued fame of New York as the destination where everyone wants to live and work, and the notion that New York City is the “capital of the world”. When the sale prices rise due to interest from multiple investors, it means the final owner will need to charge more to recoup their own costs.
Virtual Office Space NYC
One way to avoid the full cost of renting commercial space in New York is by renting virtual office space instead. The most convenient virtual office space in NYC is customizable and provides flexible options for business owners. A virtual office space set- up can help catapult your company to the next level without breaking the bank. Customizable virtual office space options include the following:
Benefits of Affordable Virtual Office Space:
- Day office rentals
- Mail forwarding and shipping address
- Copiers, scanners and fax machines
- Mail collection services
- Available lobby listing
- Meeting Rooms
- Plus Many More!
Contact NYC Office Suites today, to hear more about how we can help put your business front and center in the heart of New York City. With options for every budget, we will help customize the perfect flexible office space package for you. Contact us at (1800) 346-3968 today!