Lower Manhattan’s Commercial Revitalization Program
Lower Manhattan’s Commercial Revitalization Program has been renewed and will apply to leases commencing between April 1, 2014 and March 31, 2016. Participation in this program substantially reduces occupancy costs for small businesses.
The Commercial Revitalization Program (CRP) was developed to encourage:
(1) Landlords to rehabilitate older buildings; and
(2) New Tenants to relocate to Lower Manhattan. Expansion leases are also eligible.
The New York City Department of Finance provides Tenants with benefits under CRP through two incentives:
(1) Rent Credits: Applies to small businesses (under 125 employees) leasing space directly from a Landlord when the improvements made to the space are at least $5.00 PSF. On a 5 to 10 year lease (or longer) a Tenant will receive a total of $10.00 PSF in rent credits which are amortized over the term. For example, if you leased a 3,500 RSF office, a total of $35,000 in rent credits will be received. On a minimum lease term of 3 years the Tenant will receive a total of $5.00 PSF in rent credits. Similar incentives for larger businesses are also provided. (Note: Building owners benefit from this program by receiving a reduction in real estate taxes.)
(2) Commercial Rent Tax (CRT) Special Reduction:
The CRT portion of CRP offers an exemption on the commercial rent tax which is paid by retailers and commercial businesses with an annual rent of $200,000 or more. Qualifying businesses may receive an exemption for up to five years on the tax, which is 6% of the base rent. Note: The CRT expires June 30, 2015.
Lower Manhattan’s Commercial Revitalization Program… Map of Eligible Buildings
Lower Manhattan buildings constructed prior to 1975 in the highlighted area are eligible for the program. A complete list of buildings is available from Cogent Realty.
Link HERE for information about office spaces that are eligible for this program.
An application jointly completed by the Tenant and Landlord must be submitted within 180 days of the lease commencement. A $500 fee paid by the Tenant is required.
For more detailed information about Lower Manhattan Incentives visit the Downtown Alliance.
Best Strategy for Leasing Offices in Lower Manhattan
By using an experienced Tenant Representation Broker you can be assured of the optimal terms when you are leasing office space in Lower Manhattan or elsewhere in NYC. Cogent Realty Advisors is a NO FEE Commercial Broker with over 15 years of success representing local business. Contact Mitchell Waldman today: (212) 509-4049.