{"id":69,"date":"2016-08-03T12:23:19","date_gmt":"2016-08-03T12:23:19","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=260"},"modified":"2016-08-03T12:24:40","modified_gmt":"2016-08-03T16:24:40","slug":"42floors-joint-study","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/research\/42floors-joint-study\/","title":{"rendered":"Are Commercial Real Estate Prices Eating Your Lunch?"},"content":{"rendered":"
The wallet of a New Yorker has it pretty rough…<\/strong><\/p>\n Anyone who\u2019s spent a gratuitous chunk of their monthly wage on rent can agree. Unfortunately for business owners, they get hit twice, also having to stomach the similarly astronomical commercial real estate prices. A quick glance at data shared with us from commercial real estate platform 42Floors<\/a>\u00a0tells us the average business in SoHo shells out $67.93 per square foot per year<\/strong> on office space, while in Williamsburg it costs $44.41 for that space<\/strong>. Many of these businesses are very large, with monthly spends starting in the low tens of thousands ranging up to $140,700 for the average monthly rate for an office space in TriBeCa<\/strong>. Even the big guys with pockets that deep could benefit from a strategic office location, but it\u2019s the employees that have considered sleeping under their desk and small businesses feeling nostalgic about having the headquarters in a \u201cspare\u201d room of the owner\u2019s home that will benefit most from the data in this study.<\/p>\n The chart below shows how residential and commercial property costs compare. The line represents a line of best fit, with an equation of y = .66x + 15.51, where y is our commercial per square foot cost, and x is residential. Prices don’t hit $0 per square foot in this reality. Dots below the line represent areas where commercial real estate is more affordable than commercial. Above the line are areas where residential is more affordable. The presence of data points far from the line indicate that certain neighborhoods are more business than residential and vice-versa.<\/strong><\/p>\n <\/p>\n