New York Nonprofits Consider Creative Alternatives for Space

Brokerage firm S. Sunshine & Associates, of New York City, has released its 2010 Nonprofit Real Estate Survey. The survey found that in a recession economy, many nonprofits are getting fewer donations and are having to reassess their budgets. More than 40 percent are responding to the recession by cutting staff members, but others are trying to find ways to fit their offices into less space. "The survey results show that nonprofits are seeking ways to maximize the efficiency of their real estate in a creative manner," says Suzanne Sunshine, president of S. Sunshine & Associates. 

Many nonprofits are considering relocating to offices in less expensive areas. Among nonprofits who expect their need for space to rise or drop in the next year, 48 percent are considering relocation. The majority, however, prefer to stay at their current locations if at all possible. More than half of nonprofits have been at their current locations for more than six years. For nonprofit organizations, which rely on donations to provide them with the revenue and supplies that they need to remain in operation, keeping one standard address that does not change can be very important. Almost 90 percent of survey respondents said that their office locations provided a reasonable value to their organizations, and one third said that they would consider moving only if their operating costs rose so much that they could no longer afford rent in their current locations.

But Sunshine recommends that organizations consider finding a creative solution that will allow them to reconfigure or sublease their existing space, rather than relocating. "Many nonprofits face the possibility of shedding space," she commented, "but that is not necessarily their only or best solution." She pointed out that landlords, too, are looking for creative solutions and may be willing to work with tenants who want to reconfigure or sublease their space. "...In today's challenging market, nonprofits should realize landlords are also looking for creative solutions," Sunshine said. "Landlords always want to recruit and retain tenants, and most of them stand ready to work with nonprofits to try to accommodate their needs." 

Nonprofits who are facing budget cuts, yet need to stay in their current locations, may want to consider putting their archival records into self-storage. ExtraSpace has many tips for organizations that need to store documents to which employees may still need access. A climate-controlled unit is best, especially in areas that may experience high humidity or extreme temperatures. It is also wise to make backup or extra copies of archives, and to choose a self-storage unit that offers convenient operating hours, optimal security features such as keypad entry systems, security cameras, and perimeter fencing and lighting, and to store documents in airtight packaging that is raised off the ground. ExtraSpace also recommends that electronic media such as videotapes, DVDs, and CDs be protected by antistatic packaging. ExtraSpace has many facilities in New York and New Jersey, all of which offer the first month's rent free.