Three Short-Term NYC Subleases Signed
A California-based software company and a purpose-driven venture capital firm subleased fully furnished office space for 1 year, while a real estate investment firm signed a short 6-month sublease with an established engineering firm.
Software Office Sublease
A San Francisco-based software company searching for office space in New York City subleased a fully furnished office space with a short lease term. Their search concluded quickly with the decision to sublease from a real estate developer on Seventh Avenue near Penn Station. The sublease arrangement included two private offices and four workstations within the developer's suite. The layout provided a clear separation of space, ensuring both companies could operate independently without getting in each other's way.
A software firm subleased furnished office space near Penn Station
Finding a furnished office space was crucial for the software company to ensure their team could be up and running ASAP. With the office space already equipped with furniture and wiring, they only needed to schedule a visit from their internet service provider and bring their computers. Voilà! This streamlined setup allowed them to be fully operational within a day or two.
A few things about the office grabbed them. The suite is a double-corner unit, which provides natural light throughout the day. No one wants to work in a cave. The modern office installation was recently built to a high standard with glass walls, high ceilings, and polished concrete floors. As a subtenant, the software company enjoys full access to the conference room, an expansive kitchen with bar seating, a private bathroom, and even a pool table. And that's not all. The building has an amenities area with two more conference rooms, several phone booths, a sofa, and a ping-pong table.
From pool shark to Shark Tank
The real estate developer offset their rent by subleasing a portion of their office, and the software company was able to find an office in NYC that is spacious, short-term, and move-in ready. It was a win-win for both parties.
As an aside, the real estate developer's office sublet never hit the NYC office market. This deal was an off-market office sublease that we facilitated by matching companies via the OfficeSublets.com website.
Another Sublease Near Penn
Around the corner on West 30th Street, a real estate investment firm based in the mid-west subleased office space from an engineering firm. Similar to the deal above, this was a shared office space. The real estate firm subleased a private office and four workstations, and they'll have shared access to a kitchenette and conference room.
Around the corner on West 30th Street, a real estate investment firm from the Midwest subleased office space from an engineering firm. This arrangement, similar to the one described above, involved shared office space rather than a totally private suite. The real estate firm rented a private office and four workstations and has shared access to a kitchenette and conference room.
The executives of both firms commute to the city from New Jersey, so this well-connected area is an easy drive or train ride for them. The location is close to Penn Station but not too close—so they benefit from the convenience of the transportation hub without the chaos.
An engineered firm subleased a portion of its office near Penn Station
In both shared sublet scenarios, the companies considered renting office space from a flexible workspace provider as an alternative. While flexible workspaces are suitable for many businesses, the environment often feels cold and transient. Characterized by long, meandering hallways and numerous doors leading to various companies, it may make a poor impression on clients.
In contrast, opting for a shared office sublet allowed these two companies to create a more personalized and professional environment. For instance, they could display company signage on the front door, contributing to a more cohesive and welcoming experience for both clients and employees. This approach enabled them to establish a distinct presence and foster a more inviting atmosphere.
VC Firm Signs Sublease in Noho
A venture capital firm signed a one-year sublease for a private, 1,350-square-foot office space in Noho. The office was fully furnished, so, similar to the software company, the VC firm only needed to arrange internet service and set up its computers.
Conveniently located directly off the elevators, the office offers easy access for employees. The layout features an open workspace, a glass-enclosed meeting room, and a kitchenette. Large west-facing windows on Broadway provide natural light throughout the day.
Office space in Soho and Noho is highly sought after. We received over two dozen inquiries for this office, but the VC firm was the first to tour and quickly secured the space.
Furnished office spaces in Soho and Noho can be tough to find
The VC's new sublandlord, a branding company headquartered in the UK, had outgrown their Noho office. Just a few weeks earlier, they signed a four-year lease for a 2,100-square-foot office on Madison Avenue in Midtown South. Initially, the new space was in raw condition, but the landlord promptly constructed two glass offices and a new kitchen to quickly accommodate the company's needs.
Pre-construction photo of the branding company's new office
Two Types of Subleases
When looking for an office sublease, it's important to recognize the two main types: shared and private. A shared sublease typically includes furniture and access to shared amenities such as conference rooms and kitchens. Additionally, most utilities are usually included in the base rent, simplifying budget planning.
Private subleases, like the one in Noho, often include furniture, but this is not guaranteed. Utility costs are typically passed on to the subtenant. Additionally, the approval process for private subleases is more stringent. When a company vacates an office and subleases the entire suite to a new tenant, the landlord or management company becomes more involved.
For these private subleases, the landlord requires a formal written consent document to be executed by all parties. This process often incurs a fee of several thousand dollars to cover the landlord's attorney's costs for drafting and reviewing the consent document. Therefore, expect a few additional hurdles when subleasing a private office. However, the effort is often worthwhile for the benefit of a private space.