THE KNOG

Controlling Your Environment, or NOT

by George Grace on April 23, 2018

Nothing drives tenants crazier than air-conditioning issues.

What do tenants want? They want a comfortable workplace.  Cool in summer, warm in winter with plenty of fresh air.  This seemingly simple goal can be difficult and expensive to achieve.

The type of HVAC (heating, ventilation, and air-conditioning) system installed to service the tenant’s space depends on factors including the age and design of the building.

Institutional-style 1960s office buildings came on line during the time of the 9-5 workday.  Many were built to accommodate large corporate tenants and have central air conditioning systems (i.e. chilled water systems) which are designed to cool multiple floors and operate on a fixed schedule (9-5 Monday thru Friday with sometimes limited Saturday hours).  After “standard office hours” the cost to a tenant to have air-conditioning can be $400-$600 per hour even if a tenant only occupies a small portion of a floor.

New buildings all have systems (i.e. condenser water systems) designed to be more accommodating to more flexible office hours and cooling a single floor at a time or less.  These systems vary dramatically in their cost to operate and the degree of control the tenant has for operating the system.

Which system is best for today’s businesses?  Air-cooled, chilled water, condenser water, or perhaps some combination of systems?  There is no simple “one size fits all” answer.

Before we take tenants out to inspect space we determine what kind of HVAC would be most appropriate based on our understanding of how the company operates.  This is just a part of the critical due diligence we perform to ensure that the space search is productive and ultimately leads to the tenant occupying space that they love.

If you are overheated about your air-conditioning or your landlord:

Contact us

{ 0 comments }

George’s interview with Commercial Property Executive

March 23, 2018

  Executive Spotlight: George Grace, G.E. Grace & Co. Following a stint managing Mohr Partners’ New York office, George Grace has relaunched his commercial brokerage and consulting firm G.E. Grace & Co. Grace spoke with CPE about his decision to jump back into his own firm and how operations are different the second time around. […]

Read the full article →

GE Grace Relaunches His Eponymous Commercial Real Estate Firm

February 20, 2018

Contact:  David Grant Phone:  (646) 699-7832 Email:   David@GrantPR.com Industry Veteran George E. Grace Relaunches His Eponymous Commercial Real Estate Brokerage and Consulting Firm —- G.E. Grace & Company Founder Says Manhattan’s Shifting Trends And Accelerating Dynamism Open New Era of Opportunity NEW YORK CITY – With a focus on the dramatic reshaping of the commercial […]

Read the full article →

A Theme of Renewal & Motion in New York City’s Commercial Real Estate Market

July 10, 2017

A Theme of Renewal & Motion in New York City’s Commercial Real Estate Market New York City’s commercial real estate market is a very intense environment—it exemplifies capitalism at its best. As one area attempts to solve its problems, another area is concurrently built and becomes the solution to those problems. In this city, something […]

Read the full article →

Retail Vacancies

May 31, 2017

Retail Vacancies Because there’s a fairly high retail property vacancy rate (just walking down the streets of Manhattan, you see many “for rent” signs on stores), I don’t think rental rates for retail property will rise. I believe the fairly low level of demand for retail space can be explained by three factors:  People do […]

Read the full article →

In the Retail Market? Time to Rent or Buy?

May 5, 2017

In the Retail Market? Time to Rent or Buy? We are currently representing a buyer who’s in the market for a commercial building, condominium or cooperative. As I’ve been scouring the market, I’ve noticed that sale prices have increased dramatically over the past year. However, rental rates for retail property have gone down over the […]

Read the full article →

Why an Exclusive Broker is the Right Choice

April 12, 2017

Why an Exclusive Broker Is the Right Choice During the course of a conversation with a tenant, they asked why anyone would want to use an exclusive broker to represent them in finding and negotiating a lease.

Read the full article →

The Mercy Center’s 13th Annual Gala Dinner and Auction

April 5, 2017

The Mercy Center’s 13th Annual Gala Dinner and Auction On March 16th, I had the great pleasure of being honored by the Mercy Center of the South Bronx. Mercy Center was founded in 1990 to address urgent problems of the women and children of the area by providing an oasis from a violent home, a […]

Read the full article →

Avoid Management by Lease

March 23, 2017

Avoid Management by Lease In an ideal world, commercial tenants would work with both internal and external stakeholders to determine how much space they need before looking at properties. Management would go through a strategic planning process to figure out where the company is going, how it’s going to get there, and who’s going to […]

Read the full article →

Landlords Increasingly Looking to Shift Insurance Obligations to Tenants

February 27, 2017

Landlords Increasingly Looking to Shift Insurance Obligations to Tenants Landlords have recently become more aggressive in trying to shift some of the costs of insurance that they traditionally carried onto their tenants. In a large commercial building, the cost of all of these policies can be significant. Essentially, the insurance requirements increase the cost of […]

Read the full article →