Office Space $50 to $75 per Sq Ft in NoMad

What this band buys in NoMad right now

All three NoMad availabilities price inside this band, so the band and the neighborhood are one list today.

• 1239 Broadway, entire 12th floor: 12,500 square feet at $62, about $64,583 a month, roughly 71 desks. Exposed ceilings and polished concrete, with a floor plan and a Matterport walkthrough.
• 1235 Broadway, entire 4th floor: 9,500 square feet at $62, about $49,083 a month, roughly 54 desks. Furnished, wired and pantried, the fastest of the three to occupy.
• 22 West 27th Street, entire 7th floor: 6,000 square feet at $57, about $28,500 a month, roughly 34 desks. The lowest ask in NoMad and the smallest floor in the band.

Every one is an entire floor, so nobody is arguing over a demising line, and each desk count assumes 175 square feet per person. Run 1235 Broadway open and it takes 68 people, ring it with offices and it suits 42.

The monthly math, worked plainly

New York quotes rent by the rentable square foot for a year, so the monthly number is one multiplication and one division. At 22 West 27th Street, 6,000 square feet times $57 is $342,000 a year, and divided by twelve that is $28,500 a month. The same steps on 1239 Broadway give $775,000 and $64,583.

One shortcut prices an argument over a single dollar. A dollar of rent costs the square footage divided by twelve each month, so $500 on the 6,000 foot floor, $792 on the 9,500 and $1,042 on the 12,500. The five dollar spread between $57 and $62 is $2,500 a month on the smallest floor.

The footage you multiply is rentable, not usable, and the loss factor is set by the building, so rank floors on cost per usable seat off a measured plan.

What the asking rent does not include

Five costs sit outside the headline, and every one of them breaks budgets in this band.

• Electric is outside base rent in nearly every deal, submetered or billed as an inclusion of roughly $2 to $4 per square foot per year, which on 9,500 feet is $1,583 to $3,167 a month.
• Cleaning is sometimes in the rent and sometimes not. Ask what nightly service covers, since pantry cleanup and trash removal are routinely carved out.
• Real estate tax escalations run off a base year fixed in the lease, after which you pay a share of every increase above it, and a base year set too low costs dollars per foot by year three.
• Operating expense escalations come as a pass-through over a base year or a porter's wage formula, stacked on the annual step in base rent, typically 2.5-3%.
• Buildout above the allowance is the largest of the five. Improvement money is paid against invoices, so anything beyond it is your cash or gets amortized back into rent.

What moves in a negotiation here

Face rent moves last, because the number ownership prints on one floor sets what it can ask on the next. Everything around it is open.

• Free rent goes first and goes furthest, since forgone income costs a building less than a permanent markdown. Ask for it across construction and into the opening months.
• The allowance beats a dollar off the rent on any floor needing work. Push for progress payments and the right to apply an unspent balance against rent.
• Term is the currency concessions are bought with, so the extra years should come back as a renewal or expansion option.
• Escalation caps decide what year five costs: a stated percentage instead of an index, a capped expense pass-through, and a tax base year set on a fully assessed building.
• The good guy guarantee is negotiable in every part, from who signs it to the notice you owe on the way out.

Asking rent and taking rent are different numbers, which is why two tenants who signed at the published $62 pay different money over five years.

Where this band sits, and who it suits

Our citywide median is $75 per square foot per year and all three floors in this band ask under it. NoMad's own median is $62, about 17% below the city, and because every floor here prices inside the band, the neighborhood median and the band median are the same number. Thirteen dollars under the city is $162,500 a year on 12,500 feet.

Getting under $57 means leaving the neighborhood: Chelsea has 9,500 feet at 127 West 26th Street asking $50, and Penn Plaza has 6,100 feet at 213 West 35th Street at $52, both a trade of address for dollars.

This band suits a team of 34 to 71 that wants an entire floor rather than a suite off a shared corridor, north of Madison Square Park on the N/R/W, 6, F/M at 23rd and 28th. Above 12,500 contiguous feet NoMad has nothing today, and the search widens to Flatiron, Murray Hill or Chelsea.