This city program benefits companies relocating to Brooklyn from Manhattan or outside of NYC- with $3,000 / year for each full-time employee.
$3000 per employee. $25 per square foot.
Under REAP, eligible companies must sign an office lease for at least a 3-year term and may collect the benefits for up to 12 years. Companies may redeem their REAP benefits as a tax credit against city taxes, however, in the case of start-ups or small businesses not generating sufficient taxable income, REAP benefits may be collected as a direct payment from the city.
EXAMPLE: A Manhattan-based company relocates their office with 30 full-time employees from Manhattan to DUMBO. The asking price for the 5,000 SF office is $52.00 PRSF, which is $260,000 in rent a year. Shortly after submitting an annual NYC tax filing, they receive a REAP benefit check from the city for $90,000 ($3,000 x 30); thus reducing the rent from $52.00 PRSF to $34.00 PRSF and their annual total from $260,000 to $170,000.
Got more questions? Check out this frequently asked questions page for commercial listings from Two Trees Management Company.
And calculate your potential REAP benefits here.