NYC Commercial Real Estate – Do You Really Need a Broker?

Anyone will tell you that when it comes to the game of renting your desired space, the NYC’s commercial real estate environment is unlike anywhere else in the US. Even experienced hunters of commercial space in NYC know how intense the competition could be. And in spite of the present recession, when it comes to certain parts of Manhattan, the reality is that finding a suitable space on your own, at a reasonable rate, is extremely difficult. In such a case, the better option is to find an experienced broker.
Landlords in New York City, particularly those who own high-rise commercial buildings, prefer working with real estate brokers rather Best Things About Owning A Home than deal directly with the renter. This is especially true for commercial spaces in midtown Manhattan and the Wall Street Area.
There are cases where in smaller building, usually where the upper portion of the building is residential, you will do better negotiating directly with the landlord. In such a case, since the landlord does not have to pay the broker’s commission, he or she will be in a position to offer you more favorable terms, especially in the form of lower rent.
Considering that in commercial real estate, it is the landlord who pays the commission to the broker, one would think that a landlord would rather save the commission by dealing directly with the renter. Obviously, this is not the case in certain parts of Manhattan, especially in Manhattan’s skyscrapers where the entire buildings are designated for commercial use.
If, for example, you intend to rent a space for commercial use in Midtown Manhattan, between 34th street and 59th street, the only way, you will be able to do so is via a broker. Even if you could deal directly with the landlord, you will still do better going with a broker and here is why:
Big time New York City landlords are extremely picky in checking the renter’s background. The standard practice for a lot of them is that they usually require you to have a valid proof that your annual income is at least forty times more than their monthly rent This means you should be earning $140,000 a year if you intend to rent an office space that has a monthly rent of $3,500.
Provided that your credit history is very good, an experienced broker will, when necessary, use this fact to soften the landlord’s rigid requirements and convince him or her to settle for less, something you most likely wouldn’t be able to do on your own.
Moreover, a good broker will:
A� Help you navigate through the complex and competitive nature of commercial real estate in NYC
A� Advise you on all the necessary documents you should put together ahead of time
A� Have access to inventory you How To Buy A House Reddit would not be able to find on your own
A� Bring to the table other available commercial spaces that might not be your first choice but are actually better than your initial preference
A� Be the go between you and the landlord
A� Help you gauge what is the lowest offer the landlord will accept
In conclusion, go with a broker if you intend to rent a commercial space in one of Manhattan’s larger buildings, in the areas specified above. However, if you are planning to rent a store, or an office, space in one of the smaller buildings on the Lower East Side, Upper East and even the Upper West Side, you will probably do better by dealing directly with the landlord.

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