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NYC LEASING INCENTIVES OVERVIEW

JACK COHEN
SPACES COMMERCIAL REAL ESTATE
212-300-3265
jack@spacescre.com

FIND YOUR FREE INCENTIVES ASSESSMENT

More and more businesses are moving to or opening offices in New York City to take advantage of its educated and skilled workforce. This influx of businesses has created a competitive market for office space resulting in one of the most expensive markets in the world. Often times finding appropriate office space at economical rents provides businesses with a competitive advantage and could mean the difference between operating at a profit or a loss. With this in mind, smart businesses like Amazon, Facebook, and Google, make this one of the most important factors of the site selection process and have taken advantage of New York City’s generous incentives to make their move, and office space, more economical.

Below is a list of incentives that are available both in Manhattan and in the outer boroughs. It’s important to note that most of these incentives are “as of right” meaning that a business qualifies then they receive the benefit- no negotiations required. If your company is more sizable then there may be additional incentives that could be negotiated.

Once you’ve reviewed the incentives available, fill out the form below and we’ll help quantify the incentives for your business.

If you’re interested in maximizing your incentives check out Grow New Jersey, New Jersey’s new lucrative incentives program designed to lure businesses into the state.

Get your free NYC Incentives Assessment

Our in house incentives experts will help determine and quantify the incentives your business qualifies for.

MANHATTAN INCENTIVES

(Available for businesses relocating to Lower Manhattan)
Incentive Program Benefit Amount
Commercial Revitalization Program (CRP) –  Direct Rent Abatement of $2.50/RSF for 3 years with $1.65/RSF on the 4th year, and $.83/RSF on the 5th year. (Eligible in commercial buildings south of Canal Street) $2.50/ RSF
Lower Manhattan Energy Program (LMEP)– Provides for 45% of utilities & gas expenses for 4 years with a 4 year phase out period. (Eligible in commercial buildings south of Murray Street) $1.69/RSF
Lower Manhattan Relocation Employment Assistance Program (LMREAP)– Provides $3,000.00/employee per year in tax abatement to employees relocating from outside the 5 boroughs. (Eligible in commercial buildings south of Canal Street) $3,000/ job per year
Commercial Rent Tax (CRT)– An exemption on commercial rent tax with annual rent costs over $200,000/year. (Eligible in commercial buildings south of Murray Street) $3.20/RSF
Industrial & Commercial Abatement Program (ICAP)-Partial exemption partial or complete abatement of property taxes for renovated commercial buildings built within the last 25 years. (Eligible to commercial buildings South of Murray Street) $4.40/RSF

OUTER BOROUGH INCENTIVES

(Available for businesses relocating to Brooklyn, Queens (LIC), and Bronx)

Incentive Program Benefit Amount
Energy Cost Savings Program (ECSP) –  An eight year program (with a 4 year phase out) that reduces the delivery portion of electricity and natural gas expenses by 45%. (Eligible in commercial buildings north of 96th Street and all of the boroughs) Approximately $1.13/ RSF
Commercial Expansion Program (CEP)– Property Tax abatement signed in conjunction with ownership for a $2.50/RSF for 3 years with $1.65/RSF on the 4th year, and $.83/RSF on the 5th year. For expansion leases over 25,000 sqft applying for a 10 year time frame the benefit rises to $25.00/RSF. (in all 4 outer Burroughs as well as select locations within Manhattan). Approximately $2.00/RSF
Relocation Employment Assistance Program (REAP)– Provides $3,000.00/employee per year in tax abatement to employees relocating to any of the 5 boroughs. (Eligible in commercial buildings to tenants in all 4 of the outer Boroughs). $3,000/ job per year
Commercial Rent Tax (CRT)– An exemption on commercial rent tax worth 3.9 percent of annual rent for the base year for a total of 5 years. (Eligible in commercial buildings to tenants in all 4 outer Burroughs as well as select locations within Manhattan). Worth approximately 2.5 months of free rent on a 5 year lease term
Industrial & Commercial Abatement Program (ICAP)-Partial exemption partial or complete abatement of property taxes for renovated commercial buildings built within the last 25 years.(Eligible to commercial buildings to tenants signing leases in all 4 outer Burroughs as well as select locations within Manhattan). (Eligible to commercial buildings South of Murray Street) $4.40/RSF

Need help determining if you qualify or applying for incentives? Fill out the form below and we’ll be in touch shortly!