related to a New York Commercial Real Estate construction projects for
typically divided into hard and soft costs. In general, hard costs relate
to actual improvements to the real property and include construction costs
such as walls, heating, ventilation and air conditioning systems. Soft
costs for Office Space for New York Commercial Real Estate construction
relate to professional fees, furniture and other items that are either
intangible, short-lived or movable. Although the allocation between the
costs may not be as critical to NY Real Estate small projects, it is of
critical importance on large interiors projects and of course in new building
construction. The Brokers at Hart of New York Real Estate are here
to serve you with your office space search in New York.
A partial list
of newyorkcommercialrealestate construction soft costs include:
Architects fees, engineers
fees, project manager fees, lighting consultant fees, consultant fees,
and moving costs, furniture, signage, financing costs, artwork, building
permit and filing fees. Our Brokers at Hart of New York Real
Estate are here to help you. It should be noted that prices vary in real
estate new york.
A partial list
of hard construction costs for New York Commercial Real Estate construction
Concrete costs, electrical
infrastructure, telecommunications infrastructure, heating, ventilation,
systems, dry wall partitions, ceilings, marble and stone, metal and glass
partitions, stairwells, elevators and escalators, light fixtures, architecture
metal and glass, architectural woodwork, flooring, sprinkler systems,
plumbing systems and infrastructure, wood and metal doors, other hardware.
Hart of New York Real Estate will assist you in your
Office Space requirements.
Why is this important
to an office space tenant?
Soft versus hard costs
for newyorkcommercialrealestate construction can be particularly important
in the allocation
of a landlord cash allowance. In offering cash allowances for work, landlords
will want to ensure that the bulk of the
funds is going to "hard" improvements to their Office
Space premises. At the end of the term, the improvements of
New York Commercial Real Estate construction (with some exceptions including
personal property and pre-agreed upon items) will revert to the landlord.
Although the improvements may not have much value at the end of a longer
term lease, landlords are interested in the value added to the premises
today. In real estate new york, you may find a discrepancy in quotes.
Therefore, landlords will often negotiate in the lease to limit so-called
newyorkcommercialrealestate construction soft costs for office space.
Limitations of 15% to 20% for soft costs are common. You should carefully
plan your budget (if a significant one, preferably with a project manager)
to ensure that you get the most value out of your cash allowance.
At Hart of New York Real Estate our Brokers assistants will provide information
In a recent real estate
new york transaction, a 15,000 square foot user leased a Office Space
with the idea of making only moderate renovations to the office space.
Therefore, much of the budget was hiring consultants to advise on maximizing
the existing build-out of New York Commercial Real Estate construction
without spending a large sum. The user received approximately $14 per
square foot from the landlord. Due to the relatively minimal "hard"
costs in the overall budget
for the Office Space, it was necessary to negotiate a higher "soft"
cost percentage to cover the relatively greater consultant fees Our New
York Brokers at Hart of New York Real Estate Company will work with
you to find contractors but we are not liable for any of their commitments.
The allocation between
soft and hard costs for real estate new york building prices will be less
of an issue in building out office space because the landlord's cash allowance
will most likely not cover the entire cost of the build-out. Accordingly,
you will likely easily meet a soft cost limitation on the landlord's dollars
because you can apply the cash that your company is putting in to make
the improvements towards the New York Commercial Real Estate construction
soft costs. However, it could become a timing issue with the landlord's
reimbursement of costs. The landlord will typically reimburse no more
frequently than bi-monthly if not monthly. You should plan your
cash flow with your vendors to ensure that you have adequate funds to
front both the hard and soft costs, if need be. The Brokers information
department at Hart of New York Real Estate is not responsible for contractors
prices. Hart of New York Real Estate Brokers information department is
here to help you with your New York Commercial Real Estate requirements
for Office Space.