We’ve looked at some of the pros and cons of renting office space in a small building, and here we’re going to go over some of the pros and cons of renting in a large office building. Large office buildings stand out in the city, and they can be anywhere from a few hundred thousand square feet up to 3+ million square feet. These properties are generally known as Class A buildings and are predominantly owned by large, real estate companies.
First, the pros. This is not an exhaustive list of the pros of renting in a large office building.
Many of the large office buildings are also going to be newer than their smaller counterparts. While this isn’t true in every case, even large buildings that are old like the Empire State Building or the Woolworth Building have undergone costly renovations and are iconic addresses. With that said, the majority of new construction office buildings are large, Class A buildings. Areas like Hudson Yards and the World Trade Center have added millions of square footage of new office space.
New buildings have many benefits like columnless floor plates, better elevators, higher ceilings, and better infrastructure like HVAC and internet. They’re often taller with better views, floor to ceiling windows, and everything is fresh and modern.
For quickly growing companies, being able to lease more space is important. In larger office buildings, this is much easier. It is far more likely that there will be 10,000 square feet of space available in a 2,000,000 square foot building than in 200,000 square foot building. Not only are you much more likely to be able to find additional space, but you can often find it on the same floor or an adjacent one.
One way that large buildings attract big, high-paying tenants is through great amenities. These can range from standard offerings like 24/7 reception, front desk, and concierge services, messenger centers, and shared conference centers to things like yoga studios, private cafes, nap rooms, on-site laundry, and more.
This is not a comprehensive list of all the benefits that come with leasing office space in a large building. For even more reasons why it might make sense to lease in a Class A building, contact one of our brokers.
Nothing in life is without cons, and here are some of the cons of leasing space in a Class A building.
While the newer buildings, stronger amenities, and recognizable addresses can be great, they come at a cost. Higher rents. Location still plays a large role in the rent for a building, but larger buildings are generally going to have a higher cost per square foot than smaller buildings in the area.
In large buildings, your relative strength compared to the landlords is much weaker. These buildings are generally owned and managed by extremely large landlords that own and manage tens of millions of square feet of real estate. Your individual lease is of little importance to the landlord. This makes it harder to get what you want during lease negotiations. It also increases the likelihood of situations occurring where your lease doesn’t get renewed. For instance, if an extremely large tenant in the building wants more space and your lease is up for renewal, you may get bumped in favor of the larger tenant.
Large, Class A office buildings are going to be primarily found in the Financial District and Midtown. While these neighborhoods are extremely convenient in terms of public transportation options, they only comprise a small portion of the geographic area of the city. For companies looking for a specific neighborhood or neighborhood personality, it may be impossible to find a large office building that meets those desires.
Finding the right office space for your business in New York City is a challenge. With half a billion square feet of office space, it can be tough to know where to start and what is right for you. If you’d like to learn more about how to find the right space for your business, contact us today.