'And a wonderful view of Manhattan'.Selling tenants on the outer boroughs When Insignia/ESG managing member Jeffrey Bernstein works with a company forced out of Manhattan by escalating rents, he keeps one idea in the back of his mind. "Many tenants want to stay in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . You operate under that assumption," Bernstein said. From there, he determines the, character of the displaced company, where its employees live, and how much rent it is willing to pay. Bernstein, who manages several buildings in Long Island City, is frequently able to convince a company to move to Queens because of its cheaper rents, loft-style office space and comparatively cheaper rents. For Internet and other creative companies with younger employees, its close proximity to Manhattan is preferable to a suburban market like Fairfield County Fairfield County is the name of three counties in the United States:
"If you're priced out Priced out The market has already incorporated information, such as a low dividend, into the price of a stock. of midtown mid·town n. A central portion of a city, between uptown and downtown. midtown Noun US & Canad the centre of a town , where are you going to go? Long Island City is seven minutes away from Grand Central Station on the 7 train," he said. Bernstein is among those grappling with the difficulty of convincing companies, fed up with Manhattan's high-rent neighborhoods, to relocate to the city's outer boroughs instead of moving out of state. Ironically, the problem stems from a positive trend: demand for space in prime Manhattan neighborhoods has soared in recent years, causing rents to skyrocket sky·rock·et n. A firework that ascends high into the air where it explodes in a brilliant cascade of flares and starlike sparks. intr. & tr.v. . Rents charged for Class A office space in Midtown Manhattan averaged $60.26 per square foot in 1999, an increase of 9 percent over 1998 and 16.8 percent over 1997. Although rents in Downtown Manhattan are lower, comparatively speaking, they are still too high for some companies. In 1999 average rents climbed just 2.8 percent to an average of $41.34 per square foot. In recent years, cities like Jersey City, N.J., and Stamford, Conn., have successfully convinced companies to relocate, with the lure of cheaper rent, tax abatements and other incentives. In the mid-1990s Stamford was successful in convincing UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Warburg, called Swiss Bank Corp. at the time, to move to the city by offering a $35,000 public subsidy per job and a downtown location to build its new headquarters. UBS Warburg is set to embark on the second phase of construction at the site. But now these markets are experiencing space crunches, and escalating rents, of their own. "Jersey City isn't the bargain it once was. Rents are in the 30s but, in Long Island City, they're in the 20s," Bernstein said. Clearly the public Sector, including the New York City Economic Development Group, plays an important role in addressing this issue. At the local level, Mayor Rudolph Giuliani has introduced initiatives in the past few months to help stem the exodus of companies from New York City. In May, the mayor announced the creation of an $8 million Printers Relocation Fund to assist companies seeking to relocate with the city's five boroughs. Under the program, the city will reimburse 50 percent of moving expenses, up to $200,000, for eligible companies. The fund will be administered by the EDC EDC See: Export Development Corp. on behalf of the city. "As the media capital of the 'world, New York City takes great pride in its printing industry," Giuliani said. "To make it easier for printers to move within the city and expand their businesses, the city is establishing this fund." And in April, the mayor announced the formation of Digital NYC NYC abbr. New York City NYC New York City : Wired to the World, a program to establish affordable, Internet-ready office space beyond the boundaries of Silicon Alley An area in New York that has become known for its companies devoted to multimedia and the Internet. It is located in Manhattan's "Soho" district, which does not stand for Small Office Home Office, rather it is SOuth of HOuston Street. throughout the city's five boroughs. Among neighborhoods where such space is being developed include SI-HUB on St. George, Staten Island St. George is a neighborhood located at the northeastern tip of Staten Island in New York City, USA, at the location where the Kill Van Kull enters Upper New York Bay. It is the most densely developed neighborhood on Staten Island, and the location of the administrative center for ; HI-Way 125 on 125th Street in Harlem, and Broadband Brooklyn in Red Hook Red Hook can refer to:
"New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of City's high-tech community has exploded, employing more than 138,000 workers and generating more than $9 billion in revenue for the city in 1999," Giuliani said. The issue is also being addressed at the state level. The state legislature A state legislature may refer to a legislative branch or body of a political subdivision in a federal system. The following legislatures exist in the following political subdivisions: Under the new law, the Relocation and Employment Assistance . 'Program (REAP) tax credit was tripled to $3,000 per employee during the company's first 12 years at the new facility. A tax abatement of up to $2.5 per square foot is available for the 'first three years of a company's relocation. For people like Bernstein, these are additional, tools, to address the spce crunch. "If I'm showing a space to a client, it may be the only one they see that day. Whereas, a few years ago they may have seen eight spaces," he said. |
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