Advantages of Ownership
Economic Benefits of Office Condominium Ownership
The annual cost of office condominium ownership is historically less than the cost of leasing. Current market lease rates far exceed the annual office condominium carrying costs, which include common charges, utilities and, if applicable, real estate taxes and mortgage payments.
Real Estate Tax Exemption
Certain non-profit and governmental organizations are exempt from paying real estate taxes when they own and occupy an office condominium. Tenants leasing office space are required to pay real estate taxes regardless of their status.
Stabilized Occupancy Costs
Office condominium owners are insulated from the ever-increasing cost of leasing office space. An office condominium owner’s occupancy costs remain reasonably consistent and predictable, allowing for precise operating expense projections and easy budgeting, whereas tenants are subject to the fluctuations of the rental market and whims of landlords who may have conflicting objectives.
Operational Benefits of Office Condominium Ownership
Control Your Space
Office condominium owners control their own premises with the flexibility to dictate all aspects of design and function for their specialized use and occupancy. The investment that a unit owner makes in construction and improvement costs are theirs to keep. Such an investment in improvements under an office lease would be lost by the tenant at lease expiration.
Never be displaced
In a submarket with virtually no supply of available office space, securing a permanent location is crucial for the many businesses and organizations who require close proximity to the United Nations Headquarters. As the size of the United Nations and its related Missions, Consulates, NGOs, and service providers continue to expand, the already limited supply of office space in this submarket will be further reduced. Office condominium ownership means never being forced out of this irreplaceable area by the expiration of a lease.
Free standing buildings and townhouses tend to have challenging floor plates and large amounts of unusable space. Buildings such as these are highly inefficient for single occupancy users. The office condominiums at 866 United Nations Plaza offer sprawling floor plates of 78,000 square feet that can accommodate users of any size. Purchasing space on a single floor allows for a more efficient layout without any wasted space. Staff members and employees will be situated on the same floor, promoting collaboration and streamlined communication.
A Commitment to the United Nations
Purchasing property in the United Nations submarket demonstrates an enduring commitment to the revered ideals and purpose of the United Nations. Amongst the 193 Member States, there are 110 government-owned offices, securing for those states a long-term physical presence within the international United Nations community. The governments that lease their space risk forced relocation out of the submarket upon lease expiration, and their transient tenancy demonstrates a lack of permanence and stability.