Is it Time For Your Startup to Rent Office Space?

Is it Time For Your Startup to Rent Office Space?

Trendy Office Space with View of the City

Since startups are in their very first stages of operation and often bankrolled by founders trying to capitalize on in-demand products and services, these companies frequently begin in home offices and spare garages. But as you gain additional funding from investors and begin to find success, your startup’s needs will grow and change.

Regardless of what industry you’re working in, you may need to hire new employees, outsource tasks to freelancers, purchase new equipment, and expand to a larger space to accommodate your startup’s growth. In this article, we discuss the considerations that startup owners should keep in mind as they begin to consider an office rental NYC.

The Rent Price to Revenue Ratio

One question that many owners and co-owners of growing startups have is whether there’s a rent price to revenue ratio that is fiscally responsible. If you’ve gotten used to working out of your house, an outside office space may seem like just another added expense, and it can be difficult to determine whether a rental expense will positively or negatively affect your bottom line.

To make this decision, consider the cost per square foot, square feet per person, and occupancy cost per person. Other considerations are the total lease amount of the term, the effective rental rate for the lease term, and the monthly and yearly rent amounts. Depending on your industry, rent-to-revenue ratios can vary from two percent to 15 percent. To determine your ratio, divide the annual base rent or gross rent by your business’ anticipated yearly sales. If your rent ratio is low, your business is in a good position to remain stable in spite of market fluctuations. But if your ratio is high, you may want to negotiate a lower rate with the landlord or look for more affordable rental options.

Benefits of Renting for a Startup

Renting an office space makes a lot of sense for a startup in certain circumstances. Here are some of the reasons why renting an office space is the preferred option for many entrepreneurs.

• Healthy separation between work life and home life
• Stronger connections and accountability between management and employees
• Sculpt a company culture that suits your brand
• Exude an image of professionalism
• Stimulate your creativity and productivity in a focused work environment
• Greater networking opportunities

Office Space Rental NYC Considerations

But of course, office space rental in NYC isn’t right for every business, and making that big move is all about timing. Fortunately, there are many options available for renting a space, including shared, co-working, sublease, direct, and temporary spaces. Temporary spaces, for example, are great for startups because they allow you to “test the waters” and see whether an outside office is the right fit for your business. This type of flexibility is incredibly valuable to startups that are figuring out things as they go, as inflexible leases could trap you with obligations you can’t pay for and drain your resources.

At NYC Office Suites, we provide furnished, equipped, and staffed Manhattan temporary office spaces with all the amenities and support services you need to grow your startup. Rental contracts can be for as short as three months, and we offer many different sublease configurations to accommodate executive offices, shared offices, co-working offices, and team project offices.

Tips for Finding the Perfect Office Rental NYC

With all of the other work going on at a busy startup, it can be a challenge to put forth adequate time and resources to find the perfect office space for your company. Here are some tips to help you get started.

• Gather financial documents like tax returns and bank statements to show the building owner
• Understand how much space you need and allow for future growth
• Think about where your employees live and would need to commute from
• Set a strict budget and stick to it
• Choose a space that represents the ideals and culture you want to promote
• Consider amenities that you would want nearby your office space rental NYC
• Devise a backup plan if you need to back out of your rental commitment

Advantages of Office Rental Manhattan

Once you decide that you’re ready to start searching for the perfect office space, the next question is where should that office be located. You could choose a space in the center of where all the action is happening in the city, or you could look for cheaper spaces that are farther away on the outskirts of town.

New startups often crave the vibrant atmosphere and potential for networking opportunities in the middle of New York City but are scared away by high costs. However, those rental costs drop significantly when you start your rental journey with temporary office space provided by NYC Office Suites. Our private, full-time office rental Manhattan pricing starts at $595 per month, largely inclusive. If you choose an office space in a more remote area outside the city, you could be limiting your hiring options for new talent, making existing employees’ commutes miserable, and isolating your business from advantageous relationships.

Good-for-Business New Year Resolutions

Posted on by Jonathan Thistlewood

It’s that time of year again. If you’re like most people, you’ve already started on a list of resolutions that are going to help you dominate 2015. Maybe you’re finally going to be disciplined about getting in shape. Maybe you want to spend more time with your family. Maybe this will be the year that you finally learn to play guitar or write that novel you’ve always dreamed about.

Resolutions aren’t just for personal goals, though. As a tool for improvement, business New Year resolutions can be just as effective. If you feel like your business has gotten off track or maybe just isn’t hitting on all cylinders, the New Year can provide the perfect opportunity to evaluate your business and determine what’s working and what isn’t.

New Year Business Planning

There’s a whole host of business New Year resolutions that you may want to consider. Here are four, though, that could have an immediate impact on your sales, productivity, and overall success. Consider striving for these four resolutions in 2015:

Make one big, noticeable improvement for the benefit of your employees. Your employees work hard for you. And while you probably do compensate them very well, it’s often nice for workers to get surprises. This New Year, make one big improvement in the office that your employees will love.

Is there something they’ve been asking about? Do you need a new copy machine? Is the parking situation out of hand? Do they want the option to work from home one day a week? Think about what you could do for them to make their lives easier and to make them more enthusiastic about their job.

new year business goals

Let go of one or more long-held goal. If you’re like most entrepreneurs, you probably have a list of goals and aspirations that’s a mile long. How many of them are you actually pursuing, though? Are there any that are holding you back?

New Year business planning can provide a good time to re-examine that product that’s been in development forever and just can’t get launched. Now’s the time to reconsider that new brand you’ve been wanting to develop. Are they worthwhile goals? Or are they sapping resources from more productive activities? If so, you may be able to add by subtraction by letting them go.

Give back. Have you been so focused on yourself and your business that you’ve ignored the surrounding community? Make 2015 the year that you start giving back. If you don’t have the cash flow to give financially, you can always donate time or services. This isn’t just about feeling good. You’ll also make connections that could turn into future business. And you’ll elevate the goodwill surrounding your brand. Everyone wins when you give back.

Delegate more. You may have started as a one-man or one-woman operation, but you can’t grow with that mindset. In 2015, embrace delegation. If you don’t have the staff on-hand to delegate more, leverage the use of outsourced workers and contractors. That will free you up to focus on the big things, like where your next level of growth will come from.

What are Your New Year Business Goals?

This is just a sampling of a few business New Year resolutions that can greatly improve your company’s outlook for the year ahead. Once you get started on your list, you’ll likely come up with many more. The key is to pick the two or three that are most important to you. That way you can focus your energy on those items that will have the most positive impact on your business.

A flexible, cost effective expansion into NYC class A office space may be exactly what your business needs in order to hit the ground running in 2015. Contact NYC Office Suites online or call us today at 1-800-346-3968 to discuss our wide range of solutions.

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Choosing a Furnished Office Space in NYC over a Conventional Space

Whether your business is a startup or a well-established firm, it goes without saying that saving money where possible, or rather, using it as wisely as possible, is a financially savvy strategy.  That said, establishing a home base can be expensive, especially in New York City.  In addition to the cost of a prestigious location, physically readying a space for professional use can run up a large bill quickly and even delay operations.  Fortunately, there is a way to drastically reduce your costs, and be up and running immediately: an executive office suite.  Let’s explore three main benefits of choosing NYCOS in greater detail.

NYC Executive Office Suites with No Buildout Costs

Architects.  Carpenters.  Floorers.  HVAC technicians.  Electricians.  Internet and telecom infrastructure.  Security.  Legal code.  Lost time and missed deadlines.  These are just some of the groups of people and hurdles associated with a conventional leasing space.  Why spend a substantial amount of money and time on these when you can have a top of the line space immediately without any of the above-mentioned costs?  A furnished office space in NYC allows you to take advantage of its already-existing infrastructure, thus lowering your startup costs.furnished office space nyc

Lower Monthly and Per Year Costs

So you may have been easily sold on the buildout cost, but surely monthly and yearly costs are lower when leasing a conventional space versus choosing a Manhattan furnished office space, right?  If you only take into account rent paid for the space, then maybe.  But that is just one portion of ongoing costs; consider large office machinery such as high volume copiers and postage machines, furniture, coffee machines, building maintenance, cleaning staff and janitorial services, receptionists, electricity and water, and any other costs associated with leasing a space.

While your company will have to foot the bill for each of these items, NYCOS incorporates all of these costs into a low monthly per-person service fee – including able receptionists prepared to provide you with administrative support.

An Executive Office Space in Manhattan with Built-in Flexibility

A lease can run 60 months— because today’s business environment is defined by mobility and agility, this rigidity can be a detriment.  With a furnished executive office space from NYCOS, you have the flexibility of month-to-month terms allowing you, the owner, to assess what’s best for your company and more easily calculate monthly costs.

NYCOS certainly matches commercial office space in quality, but greatly outperforms in terms of cost.  If you’re looking to save money and time — and also avoid issues that distract you from running a successful business — allow us to help you choose a furnished office space in NYC. Explore our available spaces and contact us online, or give us a call at 1-800-346-3698 and arrange a tour in-person.

 

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Flexible Office Space for Rapid Prototyping & 3D Parts Companies

Accessible 3D printing technology continues to advance quickly.  The technology is disruptive in many ways to many industries.  How the disruption plays out exactly is not even possible to predict at this time.

What is the effect of inexpensive 3D CAD printing on commercial office space in New York City? Office space providers, including office for monthly rent businesses, may find themselves host to what are essentially incredibly flexible small-scale manufacturing concerns.  Thus, the line between “commercial office” and “industrial” real estate begins to blur.

3D parts and rapid prototyping businesses may find office business centers ideally suited to this minimally invasive form of robot production.  Serviced offices are:

  • Prebuilt
  • Equipped
  • Furnished
  • Staffed

Additionally, they permit the short-term rental of scalable chunks of office (or, production) space and have extensive mailing operations and reception desk service experience.  It is easy to imagine a 3D prototype printing company showcasing its products in one flexible office, meeting with buyers in shared meeting rooms, and producing the product itself for shipping or front desk pickup.

Benefits of Renting Office Space in NYC

What are the benefits for those who rent NYC office space?  Firstly, mass personalization opens up a whole new type of office rental customer, and may allow the operator to charge a premium rent for the hosting of these specialist machines.  Secondly, 3D printers don’t use the facilities, drink (or spill) coffee, speak loudly, or distract client service representatives.

Possible Challenges for NYC Office Spaces Hosting Rapid Prototyping Firms

What are the challenges for businesses that offer NYC office spaces for rent as they host mass customization firms?

  1. Firstly, since each 3D printer puts out as much heat as a desk lamp, and also may emit vapors depending on the filament used, offices that are used for 3D prototype production where there are up to 12 printers in a 120 square foot office may but a burden on HVAC systems.
  2. Secondly, since extension cords are not permitted in New York City, the commercial office space has to be equipped with many electrical circuits and outlets.
  3. Thirdly, a full “retail store” type operation will increase traffic to a level that will be disturbing to other clients.
  4. Fourthly, while machines are good workers, they are not very personable, and community is an increasing selling factor in the flexible office business.  Fifthly, whether such a personal fabrication business is even permitted may hinge on legal matters like the exact definition of “manufacturing” in underlying documents.

The effects of professional 3D printing technology on commercial office space for lease in NYC cannot be known fully.  Providers of flexible office space for rent will have to be nimble as they assess how to monetize the trend. For any questions regarding flexible office space for your business in NYC, contact us online or by calling 1-800-346-3968.