Learn about the different costs that come with renting Manhattan law office space, and discover another money saving alternative.
You know the law. It is what you have studied, what you have lived and breathed for a long while, and what you want to do.
And you know that you would like to have a prestigious Manhattan address to put on your letterhead.
It is crucial to know the overall cost of such an address before deciding to move. That is why it is important to take the next few minutes and count the cost of operating your solo or small law firm in a Manhattan law office space.
Hanging Your Shingle in Manhattan
The prestige that comes with a Manhattan address comes with a hefty price tag.
According to Marketwatch, you can expect to pay approximately $74 per square foot for a New York City office space. For any small business, let alone a solo or small law firm, that consumes a sizable chunk of revenue from your billable hours each month.
When it comes to cost, there is more to take into account than square footage. However, depending on the landlord, you may also have to account for utilities such as the electric bill, which is charged in one of three ways:
- Plus Electric: Your landlord tacks on a specified fee per square foot, and he or she pays the electric company.
- Sub-metered: Your space has a dedicated meter, which your landlord reads. You are charged for how the meter reads plus an administrative fee charged by your landlord.
- Direct-meter: You pay the utility company directly based on your usage.
Your landlord can also charge for other utilities, including water, sewer, garbage, and fire sprinkler costs. These are usually charged as a flat fee that is added to your rent each month.
Then, of course, there are other monthly operating expenses incurred which must be considered. Some of these expenses could include:
- Computer equipment
- Practice management/accounting software
- Legal research and copy cost
- Electronic filing fees
- Office supplies/furnishings
- Data backup systems or services
- Marketing expenses
- General and professional liability insurance
- Payroll, if you hire any additional staff
- Student loan payments, if you have recently graduated from law school
How many billable hours will your practice have to attain to pay for all of those monthly expenses?
The Advantage of Shared or Virtual Office Space
When you consider all these expenses that come with just having a small physical presence in Manhattan, you can appreciate the real value of virtual office space or shared office spaces for your solo law firm.
Most executive office space providers offer a variety of options for law firms looking to leverage the prestige of a Manhattan address while still keeping costs under control. You can choose as little or as much of an office as you want.
Or if it suits your practice, you can use a virtual office with conference rooms and office space available on an as-needed basis. Giving you the flexibility to work from wherever you see fit, while also maintaining a Manhattan business address.
In addition to avoiding a costly long-term lease, renting shared office space provides a number of other significant benefits to solo and small law firms. When multiple firms share a space, there are opportunities for collaboration. Without the high overhead of a long-term lease, you are able to concentrate on your practice, building referral networks and ensuring future business.
Whether you are fresh out of law school, or you have been practicing for many years, knowing your firm’s monthly expenses is vital to its success. By leveraging the cost saving advantages of shared office space, you can reallocate resources to other important tasks and help your firm to grow.