Nonprofit Tenants Coping with Real Estate Challenges
Nonprofit tenants in the New York City market, uncertain about the future economic outlook and concerned about slow pace of donor funds, are trying to prepare for the real estate challenges they’ll face in the year ahead. Approximately 33 percent said operational costs will be their biggest challenge, according to a survey by S. Sunshine and Associates LLC, a New York City-based real estate brokerage and consulting firm for nonprofit organizations.
Other challenges they see on the horizon include: high rent (20.2 percent); inefficient space (9.3 percent); inconvenient location (3.1 percent); and building can’t meet technical needs (2.3 percent).
Although more than half described their real estate status as stable, a good portion said it was under review. Nearly 17 percent are considering relocating to a larger space, while almost 12 percent will probably downsize to a smaller space.
A large majority of the nonprofit tenants who are considering relocation said they would like to stay within the city.
The good news for landlords is that while some nonprofit tenants are contemplating moving, over 60 percent are very or somewhat satisfied with their current landlords.