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

What this band buys in SoHo right now

SoHo is a small-floor neighborhood priced like a retail one, so the one floor left in this band is our largest availability here and the only one asking under $75.

• 50 Greene Street's 3rd floor has left this band: 7,300 square feet at $98, about $59,617 a month, roughly 42 desks. Furnished, with private offices, a conference room, a pantry, exposed brick and hardwood floors, in a landmarked cast-iron loft where character and alteration constraints arrive together.
• One Soho Square, partial 2nd floor: 27,344 square feet at $68, about $154,949 a month, roughly 156 desks, with a terrace, a conference room and hardwood floors. It is the largest floor on our SoHo book by more than twenty thousand feet.

The other seven SoHo floors we represent run 3,750 to 6,350 square feet and ask $78, $85, $95, $110, $120, $125 and $125, so a requirement under fifteen thousand feet leaves the band entirely. Neither of these two has a published plan, so we work off the landlord's measured drawing.

The monthly math, worked plainly

New York quotes rent annually per rentable square foot, so the monthly number is one multiplication and one division. 50 Greene Street 7,300 times $98 is $715,400 a year, divided by twelve is $59,617 a month. One Soho Square: 27,344 times $68 is $1,859,392 a year, or $154,949 a month.

Carry one shortcut onto tours. A dollar of asking rent costs the square footage divided by twelve each month, $608 at 50 Greene Street and $2,279 at One Soho Square, so the thirty dollar spread between the asks is $820,320 a year on the larger plate.

Per seat the two diverge: $59,617 across 42 desks is about $1,419 a month a head, $154,949 across 156 desks about $993, rent alone.

The footage quoted is rentable rather than usable, and the loss factor between them is not standardized, which is where a cheap floor stops being cheap.

What the asking rent does not include

Budgets in this band break under the headline number, on five costs a listing never carries.

• Electric is rarely inside base rent. It is either submetered or charged as an inclusion of roughly $2 to $4 per square foot per year, which at One Soho Square is $4,600 to $9,100 a month above the $154,949.
• Cleaning is sometimes included and sometimes not, and the definition matters more than the answer, since pantries, interior glass and trash removal get carved out and billed back.
• Real estate tax escalations run from a base year written into the lease, after which you pay a share of every increase above it. A base year set on a partially assessed building costs dollars per foot by year three.
• Operating expense escalations arrive as a pass-through over a base year or a porter's wage formula, and sit on top of the annual step in base rent, commonly 2.5-3%.
• Buildout beyond the allowance is the largest of these, since improvement money is paid against invoices and anything above it is your cash or gets amortized back into rent.

What is actually negotiable at these numbers

Face rent moves last, because ownership is protecting the number it will quote on the next floor.

• Free rent goes first, since it costs a landlord a period of income rather than a permanent markdown on the rent roll. Take it across construction and the opening months of occupancy.
• The improvement allowance beats a dollar off the rent on any floor needing work, and on one already furnished, like the 3rd at 50 Greene Street, that money should go toward free rent instead.
• Term length is the currency the rest is bought with, so added years should buy a renewal or expansion option rather than being conceded in the letter of intent.
• 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 and when the obligation ends after you surrender.

Asking rent and taking rent are different numbers, which is why two tenants signing at $68 pay very different money over a term.

Where this band sits, and who it suits

The median across our New York book is $75 per square foot per year. 50 Greene Street at $98 sits about 31% over it, worth $167,900 a year more than a same-sized floor at the median. One Soho Square at $68 sits about 9% under it, the only SoHo floor that does.

Measured against SoHo itself the picture inverts. Our nine floors here run $68 to $125 with a median of $98, roughly 31% above the city, so the one floor left in this band prices $30 a foot under its own submarket while 50 Greene Street sits exactly on the SoHo median. Size does that work.

The band suits a company of roughly a hundred and fifty people that wants a cast-iron loft address and six subway lines within a five minute walk without paying SoHo's small-floor rate. Below a hundred and fifty people nothing here fits, and the answer is the smaller SoHo floors from $78 up or the same band in Chelsea, where six floors price between $50 and $64.