Downsizing becoming the best cost-cutting option

For many New York City business owners, saving space could mean saving their companies, and many are aggressively downsizing their office space even when it means sacrificing inventory or subletting. Per Annum, which sells date books and planners, recently moved from a 5,000-square-foot Space On West 25th Street to a 1,600-square-foot Office On Eighth Avenue. While the company had to shed much of its inventory, it is saving an estimated $7,500 per month on rent. Public relations firm Lippe Taylor recently subleased 16,200 square feet at 215 Park Avenue South, which replaced its 20,000-square-foot office nearby. Because it was spread out over three floors, the old office had been wasting space and an estimated $15,200 each month. According to William Berkis, senior managing director at Winoker Realty, “rent is the second-largest expense, behind personnel.” [Crain’s]