Downtown Office Rent Rebate Extended To March 31, 2018

Downtown Office Rent Rebate Extended To March 31, 2018

The Downtown Office Rent Rebate program known as the Lower Manhattan Commercial Revitalization Program has been extended to March 31, 2018. Participation in this municipal incentive program substantially reduces occupancy costs for qualified businesses.

The Commercial Revitalization Program is designed to:  

(1) Motivate new Tenants to relocate to Lower Manhattan.

(2) Incentivize owners to rehabilitate older buildings.

 

 

 

The New York City Department of Finance provides Eligible Tenants* with benefits under the Commercial Revitalization Program 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 Total Rent Credits of $10.00 PSF which are amortized over the first 5 years of 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 Total Rent Credits of $5.00 PSF. 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 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, 2017.

*Eligible Tenants include: (1) New businesses and existing businesses relocating from elsewhere in Manhattan; and (2) Businesses that have not previously received the benefit. The benefit may be continued or increased when additional space is leased.

 

Map of Buildings Eligible for Downtown Office Rent Rebates

Link HERE for a small sample of office spaces that are eligible for this program.  

Application Procedure

An application jointly completed by the Tenant and Landlord must be submitted within 180 days of the date that the lease commences. All Tenants must pay a $500 application fee to the NYC Department of Finance.

 

For more information about the office rent rebate offered through the Commercial Revitalization Program visit the Downtown Alliance. 

 

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