Manhattan office space prices are mainly set by location (neighborhood), access to public transportation, office building rating (Class A, Class B, Class C). Improvements that the landlord agrees to make to space for a new tenant also counts.
Landlords quote Manhattan office space prices on a per Square Foot basis rather than on a total monthly cost. But you can easily calculate your monthly rent: multiply the per annum Square Foot price by the square foot measurement of the space and then divide by 12.
As of August 2013, office space pricing in Manhattan ranges from a low of $28.00 per Square Foot to $140 per Square Foot per year. Inexpensive commercial office rentals are located in The Garment District, Chelsea and in Lower Manhattan’s Financial and Insurance Districts.
One reason Manhattan office space prices have increased in 2013 is that small companies have been signing leases for high-end commercial space.
Why Such a Wide Range of Manhattan Office Space Prices?
Office space pricing in New York City is determined by many factors.
Class A, B & C Buildings
Premium Class A buildings offer the priciest office space for lease in Manhattan. Examples of Class A buildings are The Chrysler Building, The Empire State Building, and The GM Building. Class A asking rents vary from about $36.00 to $140.00 per Square Foot. Class A office space offers a wider range of amenities to tenants. They are better maintained, tend to be on avenues in more desirable neighborhoods, closer to public transportation.
Commercial Rental Pricing According to Neighborhood
Affordable office space for lease is located in Chelsea (north of 23rd Street), The Garment District and Lower Manhattan. There you can find office space rentals as low as $32.00 per Square Foot in Class C buildings.
Other Determining Factors
Manhattan office space prices are just a component of your commercial real estate project. To meet a prospective tenants’ unique needs, the rental rate is not the only aspect to be considered.
For example, if your company provides high-end services, you are not going to feel comfortable in a Class C loft building located on a side street.
If you and your team often work late nights and weekends, and security is a concern, you will want to be in an office building with a 24/7 attended lobby. So in this scenario, buildings with unattended lobbies, while offering more affordable rents, would be excluded.
Bottom line is you need to speak to an experienced New York City commercial real estate broker who will inform you about the best buildings for your unique needs and help you set a realistic budget. Manhattan office space prices are just one element to consider in your commercial real estate search.
