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Business Owner's Manual

Locating and Expanding

The location of your business can be a critical factor in its success or failure. This section gives you tips on selecting a location, offers information about special locations and incentive programs that may affect your decision, and covers issues that you should consider before signing a lease.

The City regulates the construction and alteration of buildings, as well as the use and safety of the premises. Failure either to comply with the regulations or to obtain proper permits and licenses can result in substantial fines. You can get more information about compliance requirements from the City's Department of Buildings.


   
CHOOSING A LOCATION  

The following are some of the factors you need to think about in deciding where to locate your business. The relevance and importance of each will differ depending on the nature of your business, so it's a good idea to discuss your plans with a business counselor before making an investment.

  • Access to transportation. What types of transportation will your employees, customers, or suppliers be using and how convenient is it?

  • Pedestrian traffic. Do you need steady traffic to bring in customers?

  • Parking and loading facilities. Will you need parking/loading for customers, deliveries, or shipments?

  • Safety. Is the area safe and are the premises secure during and after regular business hours?

  • Proximity of similar and/or competing businesses. Will competition help or hurt you?

  • Availability of business-related services. Will you need printers, mail services, banks, etc. nearby?

  • Tax advantages and other benefits. There are often some benefits available for locating in certain areas of the City.

  • Appropriate Zoning. Does the existing zoning permit your type of business? (For example, under the City's Zoning Resolution, a manufacturing business cannot operate in a commercial zone; a daycare center cannot operate in a manufacturing zone.) Check the building's Certificate of Occupancy and for additional information, call the Real Estate and Land Use Unit at the Department of Business Service at 212-696-2442.

   
LOCATION INCENTIVE PROGRAMS  

There are a number of government programs offering various tax credits, utility savings, and other economic benefits and services to businesses locating, relocating, or expanding in certain areas of the City. Benefits may be available to businesses that are:

  • At least two years old and relocating from Manhattan south of 96th Street, or from out of state, to any other location in the City.

  • Locating or expanding within "Economic Development Zones" — East New York, Port Morris, South Jamaica, East Harlem, North Shore/Staten Island, Rockaway, and Sunset Park/Red Hook.

  • Relocating to designated low-income census tracts and creating full-time jobs.

  • Located in the "New York City Empowerment Zone" — Harlem, portions of Washington Heights, and the South Bronx — and employ a specified percentage of Zone residents.

  • Modernizing, rehabilitating, or otherwise improving industrial or commercial buildings in any area of the City except Manhattan south of 59th Street.

  • Locating in new office and retail spaces in designated zones — primarily lower Manhattan.

The City's Economic Development Corporation site has details on government incentive programs. You can also find specific programs using the Services Directory (look under "Locating and Expanding" or "Energy and Technical Assistance").

 


   
SPECIAL LOCATIONS TO CONSIDER  

These locations may offer special advantages for your business. For more information, use the Services Directory and look under "Locating and Expanding."

  • In Place Industrial Parks (IPIPs): IPIPs are administered by the City's Economic Development Corporation, providing businesses with area improvements, security, and business assistance programs, depending on location. IPIPs can also be found in the Programs Locator, under "Locating and Expanding."

  • Brooklyn Army Terminal: The terminal is a 97-acre complex located near the piers in Sunset Park, provides special cost-saving services for businesses. Tax credits and utility savings may also be available. It is best suited for back office operations, printers, garment, and jewelry manufacturers. Call 212-BAT-1000 or 718-965-3100.

  • Brooklyn Navy Yard: This location offers competitively priced rental space and business assistance services to over 200 tenants. The BNY is a designated foreign trade zone, where businesses importing goods may be able to defer, reduce or eliminate customs. Printers, designers, manufacturers, garment businesses, jewelers, and multi-media firms are located in the BNY. Call 718-852-0425.

  • Business Incubators: Incubators and other forms of shared space offer small and new firms, usually in a particular industry, reasonable rents and support services.

 


   
FINDING SPACE & SIGNING A LEASE  

Once you have an idea of what you're looking for, you can ask people you know or contact a private real estate broker to help you find it. Also, there are public resources in each borough to help you identify suitable properties. For more information, use the Services Directory and look under "Locating and Expanding."

A lease is a legal document that can be enforced in court. You should have an attorney review the lease, even if it's a form lease, to make sure you understand exactly what you're agreeing to and to ensure that your interests are protected. Some key issues are discussed below.

 

The Premises

  • Check carefully to make sure that the lease describes exactly what you think you're getting, including, basement, storage areas, parking, security, access, etc.

  • Consider the condition of the premises and determine what needs to be repaired or replaced. You may wish to hire an architect or engineer to conduct an inspection. Determine responsibility for and the cost of repairs. Get a written list and a timetable for everything the landlord agrees to do, and agree on what happens if the repairs are not completed on time.

  • Find out who will have access to your space. Are there common areas through which anyone can pass? How will your areas be secured?

  • Make sure the building meets all legal requirements, including fire and health and safety codes. Check the Certificate of Occupancy ("C of O"), which indicates what kinds of uses are permitted (for example, residential, commercial, manufacturing). If you have questions, call the Real Estate and Land Use Department of the Department of Business Services at 212-696-2442.

    Note: If the C of O does not include your proposed use, determine whether you or your landlord will be responsible for obtaining a new C of O from the NYC Buildings Department. Most small business leases place this responsibility on the landlord, unless the lease is for an entire building.

 

Rent and Services

  • Clarify whether there are any items you will be charged for in addition to the rent — taxes, security deposit, late fees, etc.

  • Find out what services are included in the rent — security, water, snow and trash removal, repairs, utility and heating costs, etc. Make sure you know how these costs will be calculated. For example, if the building has a single meter for electricity and the landlord proposes to assess you a portion of his monthly charge, you should find out how your portion is calculated — by square foot, in terms of load, or in some other fashion. For savings on energy costs, Use the Services Directory and look under "Energy and Technical Assistance."

  • Check whether the services to the building — electricity, telephone, T-1 lines — are adequate for your business needs.

  • Make sure the rent is fair and that you can afford it, taking into account not only the base rent, but the additional charges and the service fees as well.

  • Determine if the rent will increase over time and, if so, what the amount will be in the later years of the lease term. How are the increases ("escalators") calculated — as a fixed percentage or by some other method?

 

The Term of Lease and Permitted Uses

  • Determine the length of the lease and make sure it suits your needs. What happens if you want to get out of the lease early? Can you sublet or assign? Do you have a right to renew? On what terms?

  • Clarify whether the lease imposes any limitations on how you use the premises. Will there be any problems if your business grows or changes?

 

Improvements

  • Determine whether and on what conditions you will be entitled to make improvements to the property. Are structural changes (walls, roof) included? Will the landlord have to approve your plans? What are the procedures for approval? What happens to your investment when you leave?

  • Make sure the lease is long enough for you to recoup your investment should you make significant improvements.

    Note:  Remember, the plans for many alterations and improvements must be approved by the Buildings Department before you begin work. Then you must get building permits from one or more of the following agencies: Buildings Department, Department of Environmental Protection, Fire Department (for more information on these agencies, check New York City's Web site).

Remember, most terms in a lease are subject to negotiation. If you can't negotiate what you want, look elsewhere!

If you do reach an agreement, make sure all the terms are in writing.

 


   
ADDITIONAL LIBRARY RESOURCES  

The Science, Industry, and Business Library's open reference collection is on the lower level of the library. Books located there and in the closed stacks can be used in the library. You can also check with the Cullman Information Desk on the first floor, or with your local library branch, to see if they have a circulating copies. Check the library's online catalog to find the exact location of the books listed below.

 

Print Resources

Business Essentials : Your Resource for Growth in New York City

New York City Directory of Technical Assistance for Business

New York City Business Sourcebook

New York Real Estate

Office Buildings:  the Only Pocket Reference with Coverage of over 1100 Major Office Buildings in Manhattan

The State of the City's Economy and Finances (annual)

 

Electronic Resources

Use the SIBL Electronic Information Center to find articles about the New York real estate market. The following sources will help locate magazine articles:

  • EBSCO Host
  • General Business File / Business & Company Resource Center (Gale)
  • Dow Jones Interactive News Service
  • PROMT (Gale)

 

Other Sources

Selected Internet Sites:

Department of Housing Preservation & Development

New York City's Business to Business Directory

NYC Economic Development Corporation

New York City Services and Agencies

 

Jack Brause Real Estate Library

Located in Manhattan, NYU's Jack Brause Real Estate Library contains periodicals, reports, and directories focusing on the New York region. They also provide access to electronic materials, such as a searchable real estate index for all five boroughs, or a database covering vacant office space in the City. The library can be reached at 212-790-1325.