Local experts vital in new value-driven commercial real estate market

Companies looking for new office space will continue to find tremendous value in the New York City office market in 2010. According to a Q1 CB Richard Ellis market report, which measures 2010 market activity up until May 1, 6.75 million s/f of office real estate has been leased so far this year, compared to 3.45 million s/f leased the same time period in 2009. As we see companies move locations to take advantage of vacancy and low rents, the role of local brokerages has become critical in helping companies navigate new neighborhoods and locations. Business behavior trends show companies moving to new office space for a number of reasons including a more central location, closer proximity to target-consumer base, and better space options. Working with a local brokerage when relocating your company to a new area benefits a business because local brokerage firms know business districts inside and out. With companies focused once again on employee productivity, value is no longer measured solely in cost per square foot, but also how a space will support a company's overall growth. After the economic strains of last year, many companies are prioritizing company wellness, and a shorter commute time adds to the overall healthy work life balance for employees. For this reason, the demand for office space that is in close proximity to residential areas continues to be a focus for businesses. Over the past 10 years, residential communities in neighborhoods such as the Garment District and Flatiron District have flourished, making the idea of a work/live environment a reality for many companies. It is key to work with a local broker who will be able to bring long-term relationships and knowledge to the table to negotiate the best deals in an office relocation. While living next to the place where you work is a great option for the locals, being located next to major transportation hubs is equally beneficial for commuters. Central locations are always attractive to firms and the 2010 market presents more options today for central office space at affordable rents, benefiting both commuters and locals. Knowing how to navigate central locations is extremely important in the 2010's value-driven office market in New York City. For companies moving neighborhoods, upsizing or finding space for the first time, working with a local brokerage is vital. Brokerage companies that specialize in neighborhoods offer clients long-term landlord relationships, which can help perspective tenants better negotiate leases and find the perfect space. For instance, a start-up company may value a flexible location in terms of the length of lease or available space in the building to accommodate rapid expansion. Having expert knowledge of which landlords in a given area will accept a short term lease or that offers space to grow is important to fulfilling that goal of a start-up. Also, as many businesses are flocking to Manhattan to lock in long leases at lower rents, local brokerages offer the advantage of historical market knowledge to guide tenants to stable landlords with strong financial health. With vast knowledge on the location of industries within certain business districts, local brokerages can also advise clients on industry-specific locations that places firms directly amongst the competition. Businesses want be where their competitors and consumers are based. In fact, not only do many businesses want to be in the same area of their competition, but actually in the same building. Many of these "specialty buildings" have been extremely popular as it generates industry destination that benefits both small and large companies. Real estate is and always will be about relationships and a local business. New York's neighborhoods are always changing and moving. Adams & Co. is a local brokerage that knows the landlords and real estate community on a personal and hyper-local level. With 100 years of experience we have always, and continue to, play a vital role in the value-driven commercial real estate market. Jeffrey Buslik is director for Adams & Co. Real Estate, LLC, New York, N.Y.