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Renting office space will cost you.
Nationwide, rent premiums have increased by an average of 11 percent. In top tech submarkets like East Cambridge, Santa Monica and Mountain View, rent premiums have jumped upwards of 75 percent. Office space investments have reached a seven-year high worldwide and business owners are paying the price. The cost is eating away at profit margins and adding an extra hurdle to the already daunting endeavor of growing a business.
For startups and SMB’s hoping to grow roots in pricey Midtown Manhattan, office shortages make the issue even more dire. A city report predicts that by 2018, all class-B and class-C space — the type of office space often inhabited by fledgling startups and tech companies — will be entirely occupied, begging the question: where will these companies go? And at what cost?
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