The Bait and Switch: A Real Problem In The NYC Executive Suites Industry

By Stephen Furnari - January 8, 2015
The Bait and Switch: A Real Problem In The NYC Executive Suites Industry

The bait and switch can pose a problem for attorneys, especially when NYC executive suites take away the element of flexibility in a shared office space.

NYC executive suitesLet’s face it. The actual experience of subletting can be a disaster for many on both ends of the table. NYC executive office suites are meant to offer stability and intrinsic value to those with special needs as clients. Small firm attorneys have become increasingly familiar with this trend over the years as executive suites have become increasingly popular with this particular market. A large portion of the executive suite centers are attorneys.

The executive suite concept works rather simply: the operator takes on a large commercial lease. The space may already be abundant with individual offices or there may be a need to renovate and create the individual offices. Furnishings and office equipment play a huge factor into making the space an area where people can conduct business. Staff is hired to manage the space and provide service to clients. Once everything is in order, the individual offices are rented out 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.

Beware the bait and switch.

It is a typical practice to have services built in to your rental agreement when using an executive suite. This includes guest reception, mail and package services, and much more. NYC executive suite pricing tends to be somewhat higher than a standard sublet office that may not have adequate service and is not professionally managed to meet the client’s needs.

NYC executive suitesSometimes executive suite operators try very hard to be competitive in the market, therefore they offer rental deals that seem like an outstanding offer. It is almost too good to be true and becomes indicative of the used car salesman tactics where the sales professional only focuses on bringing in 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.

Short-term generosity is a common way prospective clients are tricked into signing a lease agreement. When it comes time for renewal, this previous attitude may be gone because the subletter will only be interested in how much rent they can get from you for a certain period of time.

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

Get the most out of your office rental by reading our e-book “How to Convert Office Rent into Referral Revenue.”

About Stephen Furnari

Stephen Furnari is a self-employed corporate attorney and the founder of Law Firm Suites, the operator of coworking spaces for law firms. Through Law Firm Suites, Furnari has helped hundreds of attorneys launch and grow successful law practices. He is the author of several eBooks, including “7 Deadly Mistakes that Prevent Law Practice Success” and “An Insider’s Guide to Renting the Perfect Law Office”. Stephen has been featured in the ABA Journal, Entrepreneur, New York Daily News and Crain’s New York. Connect with Stephen on Twitter (@stephenfurnari).

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