3 Things Non-Profits Should Know When Negotiating a Lease
1. Rent is a critical component of your overhead: Real estate decisions are critical to non-profits for many reasons, including because rent is often the 2nd largest expense. You want to find the right space that balances supporting your budget and your mission.
2. You will almost always pay real estate taxes: in traditional NYC office buildings, non-profits are typically responsible for their portion of a building’s real estate tax increases because the owner still pays them; if you have 10% of the building, you’ll pay 10% of the increase above a base. Exceptions arise when the building owner is exempt, and does not need to impose these taxes on tenants.
3. Security deposit is standard: don’t be blindsided by a security deposit. Though negotiable, asking for several months in security deposit is standard in NYC. The good news is typically you can negotiate 1 month of security deposit returned back to you every 2-4 years of your lease.
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