Midtown NYC Executive Suites: Watch Out for the Bait and Switch

By Stephen Perih - April 14, 2014
Midtown NYC Executive Suites: Watch Out for the Bait and Switch

Midtown NYC Executive Suites offer solo and small firm attorneys flexible shared office space. Beware the bait and switch…

 

Midtown NYC Executive Suite: Watch Out for the Bait and SwitchCompared to the wild west of subletting, some Midtown NYC executive suites offer stability and intrinsic value to professionals with special needs. Over the past decade professional office suites have gained a lot of popularity with small firm attorneys. The industry consistently reports that 30% – 50% of the clients in an executive office center are attorneys. A Midtown NYC executive suite is a viable office option for attorneys.

If you are unfamiliar with the executive suite concept, it works like this: The operator of an executive suite leases a large commercial office space and builds the space out into individual offices.  They acquire the furnishings and office equipment that are necessary for a professional to conduct business.  The operator also hires staff to manage the facility and provide services to its clients.  The operator then rents individual offices to professionals for a profit.

Midtown NYC executive suites can be a great office option, particularly for a solo attorney or small firm. Not only are the office spaces nicely appointed in executive suites, but for very little extra, you get the benefit of a professionally managed office space and high quality business services.

Midtown NYC Executive Suite: Watch Out for the Bait and SwitchWatch out for the bait & switch move.

In an executive suite, you get number of services built-in to your rental, including guest reception, mail and package services and more. Accordingly, pricing for Midtown NYC executive suites tends to be slightly higher than the base price of a sublet office space that has scant services and is not professionally managed.

To keep pricing competitive, it’s not uncommon for executive suite operators to offer too-good-to-be-true rental deals to get you into the center. Executive suite sales professionals talk about rental economics similar to the way a used car salesman sells beaters; they focus on the monthly payment.

Take an office that is over-priced to begin with, say $3,000/month. Then give away four months’ free rent. Pro rate the free rent over the course of the year, and what was originally a ridiculous monthly spend now magically fits within your $2,000/month budget.

Don’t be fooled by their short-term generosity, and do not expect it to continue when it comes time to renew.

Come year two, expect your renewal to be based on the base rental price (before the discount), plus an additional 10% – 20% increase.

Executive centers know that once you get settled in an office, it’s a burden to move. They will gamble that you are willing to pay the higher rent, at least for another year, rather than go through the hassle of moving to a new location.

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About Stephen Perih

Stephen Perih graduated Vassar College (no, it is not an all girl’s school) in 2005 before earning his JD from New York Law School. Stephen joined Law Firm Suites in 2012 as the Sales & Operations Manager. Since then, he has organized and emboldened Law Firm Suites’ community and accelerated the unique referral exchange among a rapidly growing roster of attorneys.

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