A bait and switch can be a disaster scenario for any attorney looking to rent an executive suite or shared office space.
Finding a sublet office is no walk in the park. In fact, it can be one the most stressful experiences for any attorney. NYC shared office spaces and executive suites are meant to provide a sense of stability and be of necessity to any lawyer looking to attain one.
The most common clients of shared spaces and executive suites are small firms and this has become an increasing trend over the years. A large percentage of executive suite clients are attorneys and this is something that should not be ignored.
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.
An NYC executive suite may be a great option for anyone and for solos and small firms, this option may be ideal. In addition to having your own space, but you get an office that is professionally managed by onsite staff so you don’t have to do it yourself. These additional perks come often at very little extra cost.
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.
With all the executive suite centers to compete with, especially in New York City, some providers try to be extra competitive in offering “too go to be true” rent deals. These tactics parallel what a used car salesman would do because the focus is only on bringing in the monthly payment and not so much the quality of the product.
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.
The key word here is “short-term generosity” and it is a common way to trick a client into signing a lease agreement. You might have this great deal for that year or two of the agreement, but when it comes time to renew, you’ll find that that generosity is gone and the subletter is singing a different tune. The subletter will only be worried about making a profit.
Come year three, expect your renewal to be based on the base rental price (before the discount), plus an additional 10% – 20% increase.
Executive centers understand the stresses associated with a move. It’s not fun and overall is time-consuming and expensive. Such centers that pull this kind of crap know there’s a high probability the subletter is willing to pay the higher rent at least for another year because the stress of moving is often not worth it to many people.