What Costs should be Considered with NYC Office Space?
Finding Hidden Office Costs
If you own your own business, you already know there are several unexpected costs that will pop up over time. Unbudgeted costs can be the difference between success and bankruptcy. Many people who are looking to lease office space for the first time are unaware of the many hidden costs that come with the space. Here are 4 expenses that you will need to consider when you move into your NYC office space.
Furnishing the Office Space
When you furnish your office space, you need to make sure that you purchase enough for any expansion, as well as conference rooms, break rooms and your reception area. If you are thinking of expansion, you might want to consider buying extra inventory now. This will cut down on the expense of moving the furnishings into the building and it will ensure that the supplier as the same furniture in stock. You don’t want to find out that the supplier has discontinued your line. If finding hidden office costs is new to you, it is important to know that this is a big expense that has to be considered.
In addition to the cost of the furniture, consider delivery, set up and any fees that the building charges for moving in. Use of the freight elevator and building porters can add up quickly. A good alternative to buying furniture is to lease it.
Utilities
When preparing your budget, you will need to take into consideration that the utilities are a variable expense. Make sure you don’t get caught with a heating bill in December that you did not anticipate. It would be wise to do a cost analysis on the conversion from the existing lighting to more efficient LED lights. Although this will be costly upfront, the conversion could save a large amount of money in the long run.
Cleaning Fees
When negotiating the lease, the cleaning will most likely be included or a fixed line item that you can budget. But this does not always consider things like carpet and window cleaning. If you have tile floors, you will need to determine if this is part of the fixed charges as well.
Property Taxes
It is not uncommon to be required to pay a portion of your building’s property tax. Traditionally, the amount that you would pay would be in proportion to the amount of the building that you lease. Many people would not realize that property tax would apply to a leased property, but that can be a substantial hidden office space cost. As we all know with taxes, they most likely go up every year. This amount is hard to determine for your budget.
Does this Sound Like a Lot? There is an Alternative.
NYC Office Space view of St. Patrick’s Cathedral
Finding hidden office costs can be challenging. There are all-inclusive alternatives to traditional office space that can save you time and money. Serviced office space, known as coworking, can not only help streamline your budget and save money, but it can save you precious time that you don’t have. Establishments like Workspace by Rockefeller Group offer all-inclusive rates on their offices. They come furnished, staffed and with all utilities included. If you think this is an alternative that you want to explore, contact us now.
