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How Much Does It Cost to Rent a Small Office Space in NYC?

February 19, 2021 | by Viveka Krishnaswamy
Reviewed by real estate expert Jonathan Wasserstrum

Known for having some of the most expensive commercial real estate in the world, New York City can be a challenging place to find affordable office space options for rent.

But how much does office space in New York cost exactly? In this guide, we’ll share how much you can expect to pay for New York City office space, and what it costs to rent a small office space in NYC.

Step 1: Determine the Type of New York Office Space You Need

One of the best things about New York City is that you’ve got the world at your fingertips, including a virtually endless list of options for small office space rentals.

There are currently thousands of available rental listings for offices in New York, NY, ranging in size from 77 square feet to a behemoth of 1.8 million square feet. The price range for New York City office space is almost as diverse.

Previously, the process of finding office space in New York City was somewhat restrictive. A broker presented you with Manhattan office space listings, you went on office tours, you made sure the office rental costs for your preferred spaces were in line with your budget, and then you signed a 3+ year lease. Now, however, you can choose from a vast variety of New York office arrangements, including flexible office space and coworking offices, which can be much more affordable than traditional space and provide a range of small office space options.

The type of NYC office space you choose will affect the cost, so we’ll walk through the pros and cons of each option as well as the price (either per hour or per square foot) that you can expect to pay for these Manhattan spaces.

Shared Office Space

If you’re on a budget and need a small office space for rent, NYC does have options.

Shared office space has highly flexible terms and can be one of the most cost-effective ways to obtain office space in New York, especially for solopreneurs or small teams. These shared working spaces often include something called “hot desks,” which means you don’t have a specific work area. As long as you’re okay with moving around and potentially occupying a different workspace each day, this option is one of the most affordable — especially in pricey Midtown Manhattan.

These spaces can be rented monthly, or you can arrange for longer-term workspace rentals. The good news is that you don’t have to make a commitment or sign a lease. You’ll have a cheap, small office space for rent that you can work in whenever you want.

Hourly office space

If you’ve got a business that keeps you on the road, hourly office space in New York can be ideal because of the flexibility it affords — you can be in Greenwich Village one day and Midtown Manhattan the next. For example, if you have out-of-town client meetings, you may choose to situate yourself in an hourly rental in Midtown’s Grand Central Station neighborhood to ensure you’re in a convenient location for your clients.

Coworking Space

NYC coworking space is similar to flexible office space, but instead of paying for offices by square footage, you’ll pay based on either the number of people that will be on the premises or the amount of office space you’ll require.

This arrangement is ideal for small companies and tech startups that are just getting off the ground and aren’t ready to bear the financial commitment of a long-term lease in the expensive New York real estate market.

Prices start at around $50 per day and can go up to several hundred dollars, depending on how many team members need workspace and whether you want to set up a virtual office as a workspace, require private office space or dedicated meeting rooms for your business, or need additional administrative support as part of your rental rate.

Traditional Office Space

Because there are so many different types of office spaces, the costs of New York City office space will vary drastically. Traditional office space is generally on the more expensive end of that range — on average, you can expect to pay approximately $77 per square foot per year in Manhattan, New York, or $6.40 per square foot per month. However, there are more affordable options in NYC than you might initially think.

The differences in NYC office space prices per square foot depend on a variety of factors, including location and the prestige of the neighborhoods. For example, a New York City office classified as Class A in Midtown is going to cost more than a Class B or C office space in Lower Manhattan neighborhoods, such as the Financial District. A neighborhood like the Plaza District will run you upwards of $100 per square foot per year, while average rents in the Water Street neighborhood will be priced at a much more affordable $57 per square foot per year.

Step 2: Determine Your Desired Amenities

If you’re looking for a cheap small office space for lease, you won’t necessarily be able to find a space with all the amenities you desire. Determine what office amenities are must-haves and what you can live without to keep your costs down during your search without sacrificing the essentials.

Remember, square footage isn’t everything when it comes to NY offices, especially if you’re only looking for office space options for one person or a small team.

Some of the amenities and features to consider (other than size) and weigh up the importance of in Manhattan for NYC office space include:

  • Access to meeting rooms
  • Natural light
  • Receptionist
  • Business lounge
  • Private offices or office suites
  • Business address
  • Building accessibility (whether you have access 24/7)
  • Availability of conference rooms
  • Wi-Fi
  • Showers
  • Private bathrooms
  • Kitchen and/or coffee bar
  • Bike parking
  • Landlord location and responsiveness
  • Private phone lines
  • Cleaning services
  • Utilities

Step 3: Find Your Ideal Workspace

Once you’ve determined the type of New York workspace you want and you’ve figured out the price you’re willing to pay, the final step is to schedule some bookings to tour office properties that have potential.

You can use SquareFoot’s filters to help you find the ideal office space in Manhattan, New York, NY, including areas like the Garment District or offices near Grand Central Terminal.

Filter office space listings by square footage, cost, number of employees, lease term, and even neighborhood to review listings that could be a good fit for your workspace. Once you’ve found a listing that fits your requirements, schedule a tour, and let’s get to work! Get started today.

 

Tagged: Around NYC

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