Whether it was the burst of the housing bubble in 2007 or the banking crisis, in 2008, that caused the recent recession, the undeniable fact is that the climate, and tone, of NYC real estate has been changed, especially in the commercial sector. The prices of residential and commercial real estate in NYC have dropped to their lowest level in recent years. Some estimates show a decline of as much as 30% in the most sought after commercial spaces like, Midtown Manhattan and the Wall Street areas. And while it may be bad for Manhattan’s landlords, it is undoubtedly a golden opportunity for new renters as well as for businesses already renting a commercial space.
During the heydays of the US golden economic era, when all seemed fine and Wall Street was booming signs nyc landlords were in command. If you wanted a particular commercial space that badly, you had to pay the full price. But, that was then.
The recent recession brought with it a stricter money-landing policy that was soon adopted by lenders. The increased budgetary cuts by banks, security powerhouses and other businesses forced landlords and real estate companies to be more careful when lending money, approving a mortgage, renting an apartment or a commercial space. Now, even a finance whiz must provide a solid evidence of his or her ability to pay the rent or the mortgage before he or she can get approved.
Isn’t it ironic that landlords all over the US, including in neon signs nyc are stricter in their screening process of any potential buyer or renter, yet are willing to compromise and come towards the renter or buyer more than in recent history? Well, the reason for it is simple – they do not want to sit on their inventory forever. They rather reduce your rent than lose you as a tenant.
What it boils down to, is this: Landlords are eager to rent out their commercial spaces. Landlords are willing to offer great concessions, but only if you can show the landlord a good credit history, and a solid proof that you have the financial ability to pay the rent.
Let’s assume you have found a commercial place, be it, an office or a store space, the first thing that the landlord will want to know is how able will you be to pay the rent. To accomplish that, your landlord will have you sign a release that will allow him to check your credit history. If, after checking, your landlord is satisfied with your credit rating, he or she will want to see a proof of all your assets, including your saving, and checking, bank accounts.