New Business Savings: Manhattan sublet Office Partnership

If you want to figure out why the current office market has become very similar to the Russian set of dolls (Russian specialty wooden toys, generally by a number of the same pattern of hollow wooden dolls a set of one, up to more than 10), then to Manhattan Soho (SoHo) A look at the top floors of NO. 568 Broadway Street may help you understand better. It used to be a sewing factory, and now publisher Scholastic has sublet two floors of the building to the geographic check-in service Foursquare,foursquare and sublet one layer to several other technology companies, They include a smartphone app developer named fueled. But that's not the end of it. Fueled also divided his office into a partnership office space for people to rent, each month rental of 650 dollars per seat. Fueled along a wall of the office filled with bottles and jars, offering unlimited fast food to the partners. One of these seats belongs to David Spiro (David Spiro), a self-employed entrepreneur. On a recent afternoon, he sits alone at the corner of a long table, with his laptop on his desk and a packet of popcorn next to him. I have raised some funds. "Spiro said. But it's not enough to rent a decent office space in Manhattan, so it's nice to be working here. "In the Spiro four weeks, other tenants have the same idea. To widen the scope, the idea is actually quite common in the surrounding community. Over the past few months, the sublet has emerged in the Soho south of Manhattan. In these deals, early-stage technology start-ups have opted to lease office space from companies that are already tenants, rather than directly reaching leases with owners. Tenants and property brokers say the sublet is more popular in many cases because rents are usually slightly lower than traditional leases. In addition, for tenants who rent office space through such transactions, their leases are shorter than the traditional leases of 10, and the deposit is much less. In addition, they say, the same important thing is that the partnership office space is usually expanded, which means that high-speed Internet connections, air-conditioning and conference rooms and other necessities are ready. Analysts explain that it is crucial for startups or self-employed entrepreneurs to get up early and then go back to work, because the growth of these companies is often measured in months, not by year. Of course, the sublet model of office embedded and Embedded Office carries a certain risk. If the first, second, or third tenant goes bankrupt, the sublet may find himself homeless. However, because the lower-level tenants ' own leases are too simplistic, they can be quickly and easily closed if the tenants ' development applications fail to succeed.Ji ". They don't know what their future is, so liquidity is a big deal. Hiddy Lernas Heidi Learner, chief economist at Studley, a commercial real estate firm, said he was one of the authors of a technology company's report on sublet trends. They do not know how many employees their company will have, or whether they can raise any venture capital, or whether they will be acquired. "On the whole, subletting is becoming an increasingly popular trend. Studley said that in the southern part of the city, from Canal Street to 30th Avenue, 19% of this year's office space leasing activity was sublet, up from 11% in 2010. The report also noted that, between January and April of this year, 33% of all leases signed by technology companies in Manhattan were sublet, while other industries had less than half the proportion of transfer-lease contracts to technology companies. In addition, the report said, the average length of the technology industry sublet contract is about four years. ' Not any office space can be sublet, ' says Jones Lang LaSalle, a broker Sien Black. He points out that technology companies almost want buildings before World War II, that is, buildings with high ceilings and Lu Ming joists. He added that because of this type of industrial space is mainly in the vicinity of Broadway, its supply is relatively limited, and demand has been booming. They like the appearance of the building of the Old World and the new. "said Blake. Jones Bank has many customers in the technology industry, including Foursquare. There are not too many walls and cubicles in the building, and a certain attitude is embodied in the art works of the eclectic school that hangs on the wall. The last thing they want is for office space to match the style of corporate America. "Technology companies have been subletting a bit more space than needed to their own office space, suggesting they have learned that demand from a booming industry is growing, allowing them to rent extra office space to similar companies." In addition, according to Studley, the rent in the southern part of the city is now generally around $45 per square foot (about 484 U.S. dollars per square metre), and it is wise to rent office space at this price, because it is expected to increase the rent. This is a good way to achieve hedging when renting office space. Delleck Stewart, Derek Stewart, said he worked at Foursquare to deal with the company's rented office space, but he left this summer. Foursquare has a total of 120 employees in New York, who rented the office space at around $45 a square foot in 2011, with a contract period of seven years, Stewart said. But heThe building's visibility in the technology industry is also likely to rise slightly, due to the fact that companies such as doctors ' application services ZocDoc and men's fashion website Thrillist are also under the same roof. This means that the rental of the office space is now likely to reach about $55 per square foot (about $592 per square metre), he said. But Stewart adds that so far, Foursquare has little incentive to make money by subletting office space. Fueled and other tenants also pay about $45 per square foot, he said. We feel that it's a little bit of a way to make money. "said Stuart. We don't want to leave a bad name in this close-knit community. "Stuart is now working for tech investor David Tisch. He also points out that subletting is essential for the survival of the tech community. In San Francisco, Stewart rented two office space on behalf of two technology companies. In this city, startups can afford to rent office space directly from the owners because there is a three-month deposit for the tenant, and in the case of New York, a 12-month deposit is usually required. Here (New York), the owner is too unwilling to take risks. "he said. In the technology industry, a company even in the entrepreneurial phase can not be underestimated-the picture sharing social platform Instagram was founded in 2010, two years later by the Foursquare for 1 billion dollar price acquisition-short-term sublet office space is not a rare thing. News site BuzzFeed, for example, has signed a two-year office space lease, located at Tiffany's new headquarters at No. 200 v Avenue. BuzzFeed's original headquarters is located in West 21 Street, when the office space area is 20,000 square feet (about 1860 square meters). Tiffany's new headquarters has a total of seven floors, BuzzFeed rented is one of the floors. BuzzFeed did not disclose the rental of the office space, but according to Studley broker Gregg Tobin (Greg B. Taubin), the rent for the area could be as much as $65 per square foot (approximately 700 USD per square metre). Such companies do not sign long-term leases because they do not have a water planet (which can predict the future). "said Tobin. But for Tiffany, who doesn't need office space right away, subletting can help save costs. There are other advantages, too, that there will be lights in office buildings and more people in elevators, said Bonnie Chapillo, leasing Director of Allied, No. 568, owner of Broadway Street. You don't want a tenant to walk around the building and see a dark, unoccupied office space. "For tenants who may merge or shrink their business, subletThe new demand for space may come just in time. In recent months, Credit Suisse has taken several rounds of layoffs, with three office space in Manhattan, one of which is No. 315 Garden Avenue South, but the group has sublet all of the office space. The VaynerMedia, throttled, Responsys and Adap.tv are already in the building at the Iron Building (Beaux-Arts), located on East 23 Street. Earlier this month, Adap.tv was admitted to the 17 floor of the iron Building, which has an area of 16,000 square feet (about 1490 square meters). The new office space has a red wall decorated with vibrant, creative, and enthusiastic slogans. All four sides of the office space are executive offices, and these offices have become shared conference rooms. Adap.tv Communications Director Guery Manoratos (Gerry Manolatos) said the office space is far better than the original 4000 square feet (370 square meters) office space at No. 915 Broadway Street. Manoratos did not disclose the term of the lease for the office space of the Iron mansion, which only indicated less than 10 years. But he says Adap.tv is turning back and forth in the technology industry sublet Market, which had previously been sublet by a technology company in the office space at Broadway. This gives the impression that one transaction brings another. "Manoratos said. Everyone is thinking, ' Who knows where we're going next? ' [Author: Snow] Label: technology start-up company Sublet Office sublet offices Print Collection