Financial
- Monthly rent: $26,000
- Annual rent: $312,000
- Rent per SF/month: $5.05
- Rent per SF/year: $60.58
- Approximate monthly cost per 1,000 SF: $5,049
- Lease length: To be confirmed / negotiable
The location is a major strength. East 12th Street places the property in the Greenwich Village / Union Square area, with convenient access to Union Square, Broadway, Fifth Avenue, and the surrounding Flatiron and NoHo business districts. For an office tenant, this is a strong central location with excellent access to restaurants, retail, and multiple subway lines.
The 5,150-SF footprint is large enough for a meaningful office operation and could potentially accommodate a substantial team, conference rooms, private offices, open-plan workspace, reception, and support areas depending on the floor plan.
Compared with 6 Stone Street, which was asking approximately $40/SF/year, East 12th Street is more expensive on a normalized basis at approximately $60.58/SF/year. However, it offers almost three times as much space and a Union Square/Greenwich Village location that may command a substantial premium over the Financial District.
The absolute rent commitment is significant at $312,000 per year, but the economics become more attractive when viewed per employee or per workstation if the space can be used efficiently. For example, at 5,150 SF, the monthly cost per 1,000 SF is only about $5,049, which is much lower than the small-format retail rents you have been evaluating.
The biggest diligence questions are the floor configuration, natural light, ceiling height, elevator access, number of bathrooms, HVAC system, electrical capacity, existing buildout, conference-room configuration, and whether the quoted rent includes any operating expenses or real estate tax escalations.
I would also verify whether the space is delivered built and furnished, as-is, or requiring substantial tenant improvements, since that could materially affect the effective cost. A lower face rent can become much less attractive if the tenant needs to spend heavily on construction.
Overall, 36–38 East 12th Street looks reasonably priced for a 5,150-SF Manhattan office in a strong downtown location. At approximately $60.58/SF/year, it is not a bargain compared with Financial District office space, but the Union Square/Greenwich Village location, larger footprint, and accessibility could justify the premium. If the existing buildout is usable and the landlord is offering reasonable concessions, this could be a strong office option.
