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Everything You Need To Know About Negotiating Tenant Improvement Allowance

Office Space Real Estate Fairfield County

Loyalty and commitment in business should yield rewards. As a tenant for office space, this is a factor that you should have in mind prior to signing a lease. If you feel that you have found office space in which you can see a future, then you should make it a point to make sure you can reap the benefits of your long term stay in this location. That means locking down a Tenant Improvement Allowance agreement in the lease. With Rakow Group’s office space real estate Fairfield County services you can have the guidance in negotiations to ensure you land this best possible tenant improvement allowance with your landlord.

What Is Tenant Improvement Allowance

Most landlords will help retrofit and develop their properties to better fit the needs of their most loyal tenants. The terms of improvement allowance, along with the length of the lease, typically will have a profound impact on the monthly costs. It’s for this reason that it’s so important to have foresight in advance with regards to how long you anticipate staying in this space, what you would like to do to improve it, how long that will take you, and how much you think it would cost. It’s in your best interest to measure all variables in advance, so as to ensure that you can come to an agreement with which you’re comfortable.

Negotiating Management Rights

The first step is making sure you confirm a tenant improvement allowance and that you agree on a rate that is favorable to you and your business. But that’s not where it ends. Step two is negotiating who is in charge of whatever renovations or changes you want to make. This can be a bit tricky, seeing as how you’re not the owner. But at the end of the day, most landlords are renting out property as an investment. There greatest concern is your loyalty. If you can communicate that fact clearly, in many cases, you can convince your landlord to hand over control.

The Two Types Of Tenant Improvement Allowance

  • Turn Key Build-Out: In this case, the landlord will agree to cover the cost in full. That means you’ll have the liberty of building/retrofitting your office exactly as you envision it without any concern of cost. However, keep in mind that someone will have to pay for it, even if it’s not you. If your landlord agrees to pay for an expensive edition, it may reflect in your rent, which is more long term. You’ll want to keep an eye on that before signing off on a Turn Key Build-Out.
  • Stated Dollar Amount: Here, your landlord gives a set amount. That is to say, your landlord will state that he or she is willing to fund any structural or architectural changes, provided you do not exceed a certain number. While this seems less favorable, it can end up working to your favor. That’s because by being more conscious of the cost, you can maintain a stronger relation with your landlord and prevent high spending from relocating to your month, which you’ll have to pay every month for as long as you’re a tenant for this property.

 

For more negotiation tips and other office space real estate Fairfield County services, give Rakow Group a call at (203) 359-5703.

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office space real estate Fairfield County

A Cost/Benefit Analysis Of Short Term Vs. Long Term Commercial Leases

Office Space Real Estate Fairfield County

There really is no “standard” length for a commercial property lease. That said, a typical office space lease can range from 5 to 10 years. An important piece of fine print to keep an eye out for is the provisions for lease extension. This clause could prove crucial to your relations with your landlord and the stability of your business. It will determine whether or not it’s worth your while to renew the lease on the same or updated terms. What you want to keep in mind is that the renewal clause in a lease is usually for your benefit. You’ll suffer if it’s absent from the lease and you fail to address its absence prior to signing a contract.

The Advantages To Short Term Leases With Renewal Options Over Long Term Leases

Here’s a little piece of insider knowledge for our loyal Rakow Group readers. The general consensus here is that most property owners prefer their tenants to sign long term contracts, but it is usually in the benefit of the tenant not to sign a long term contract, but rather, to sign a short term lease with the option of lease renewal written into the contract (or, a long term lease with the Option to Terminate…call us and we will explain).

Presumably, it will almost always be favorable to the owner to retain the tenants he or she already has rather than spend the time and resources finding someone new. Therefore, in the event that you, as a tenant, discover a flaw in the property that you feel the landlord should address, you may then have the negotiating power to influence him or her to make those changes once the lease expires, which would be sooner rather than later.

The Disadvantages To Short Term Leases With Renewal Options

However, on the other hand, there are a few setbacks to this strategy that you should consider. Above all, in reality, you won’t really have nearly as much negotiating power as one may expect. You’ll have fewer concessions, as landlords tend to design their contracts to reward those who show loyalty.

Good investments take a healthy combination of foresight and research. But investing, and showing faith and trust are the ingredients for a strong professional relationship. It is in this foresight in investigative resources, based on years of experience, that the Rakow Group stands to place you in the most advantageous of positions in your search for property.

Good investments take a healthy combination of foresight and research. But investing, and showing faith and trust are the ingredients for a strong professional relationship. It is in this foresight in investigative resources, based on years of experience, that the Rakow Group stands to place you in the most advantageous of positions in your search for property.

This is just one among an assortment of secrets to getting the best possible deals in your search for office space. To give yourself the advantage that your company deserves, call the Rakow Group at (203) 359-5703 for unbeatable office space real estate Fairfield County networking, consulting, and negotiating services.

office space real estate Fairfield County

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medical office space for rent Westchester County

3 Criteria That Make Medical Office Space More Difficult To Find Than Other Industries

Finding medical office space is different from finding office space for other industries. That’s because the criteria is more extensive and complex. To illustrate our knowledge on the matter, we’ve compiled a brief list of all the variables that make medical office space for rent Westchester County search so difficult, and followed by an explication of why our services can make that search much easier and more effective.

Radiation Equipment Makes For A Hazardous Environment

At the very least, physicians will utilize x-ray equipment. Beyond that, depending on your practice, you may perform CT scans and any number of other equipment that uses radiation. In the off hours of your medical office, you will need to store that equipment securely in a space that protects the buildings inhabitants from radiation poisoning. This entails extra measures that will surely appear in the your lease. In general, the presence of hazardous equipment and materials are usually grounds for a bump in rates for the lease.

Agreeing On Terms For Utility Expenses Can Be More Complicated

Albeit, private practices don’t have emergency rooms, which means patients should be able to schedule appointments during work hours. That being said, people don’t always get sick at the most convenient of times. When possible, we’d all like to avoid the emergency room. This isn’t lost on most physicians, and as a result, many will agree to see their patients during after hours. From a landlord’s perspective, this distinguishes physicians from other tenants in how it reflects on the utility bill. This is also something that you’ll have to negotiate prior to signing the lease.

HIPAA And Hazmats Limit Landlord’s Right To Access Office Space

Most landlords, by contract, reserve the right to enter their commercial spaces as they please. They sometimes do so to explore how well the tenants are managing the space. Or, if they suspect that their tenants won’t renew and the lease is nearing its end, they’ll take some time to show the space to other prospective tenants. With medical office space, landlord’s don’t have nearly as much liberty to move about a space for which they are the owner. This is difficult for some property owners to come to terms with.

But at the end of the day, patient privacy laws prohibit landlords from entering entering rooms with documents about patients. Additionally, for the protection of all who inhabit the space, landlords also cannot enter areas that hold hazardous or infectious materials. Maneuvering these unfortunate realities with a property owner may be something you’d want to leave to someone with experience in doing so.

The Rules Regarding Who Can Die On The Premises Are Different

Depending on the practice, death could be commonplace for some offices. Normally, leases have clauses saying that landlords reserve the right to evict their tenants and penalize them in the event of any injury or death on their property. Needless to say, this is a clause that you will have to modify if you are going to be a tenant with terminally ill patients entering your office on a daily basis.

The issues we’ve listed above are only the tip of the iceberg. To learn more about the intricacies of medical office space for rent Westchester County services, give Rakow Group a call today at (914) 422-0100.

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office space real estate Fairfield County

The Crucial Difference Between Useable And Common Area Square Footage That Everyone Overlooks

When it comes to commercial real estate, there is a collection of fundamental concepts. Prospective tenants and sometimes even professionals in the real estate industry fail to fully understand it. There’s a difference between usable square footage and the proportionate share of square footage that the tenant will actually use. These are often two very different figures that prospective tenants overlook all too frequently when searching for the perfect property. These are the kinds of oversights that one can avoid by choosing Rakow Group as his or her office space real estate Fairfield County provider.

What Are Useable Square Feet?

Useable square footage applies to the space you rent in its entirety. It applies to the full space that the workers will inhabit. In the event that you share the space with another company, the useable square feet accounts for everything. That includes where the other company will be working. It also accounts for exit and entry doors, structural columns, and any space you can’t fill with a worker. Useable square feet accounts for all of this space equally. In other words, this figure accounts for the space where the columns are as if they weren’t there.

Additionally, if you plan on becoming a full floor or multi-floor tenant, your landlord reserves the right to charge you a portion for the areas that go beyond your office space. That means restroom areas, hallways, elevators, and stairways as well. You will split this fee with whoever are your fellow tenants. It is also not uncommon that property owners charge their tenants, be they small tenants or full floor/multi-floor tenants, a small fee for the lobby area too. So don’t let that alarm you if you it pops up in your contract. The truth is that you’ll usually run into this no matter where you go.

What’s The Common Area Factor?

As we’d mentioned above, this applies to the areas that multiple tenants must share, such as the hallways, restrooms, etc. There are two types of Common Area Factors, the first being Floor Common Area Factor, which applies to the spaces and amenities that tenants must share on their respective floors, such as restrooms, break rooms, eating areas, etc. For the most part, this figure dances around 8%, give or take, depending on the a number of variables and the owner.

The second is the Building Common Area Factor, which applies to the sections of the building beyond the floor that multiple tenants co-inhabit, such as elevator space, stairways, lobbies, etc. This figure can vary widely from 4% to 10% depending on the the building itself, with special regards to its age and quality, the location, the number of other tenants, and once again, the landlord.

Altogether, the sum between the Floor and Building Common Area Factors adds up to anywhere between 12% and 20% of the total rent for the space.

Want to really become an expert in how to find quality commercial property for rent? Give Rakow Group a call today at (203) 359-5703 and ask about our top of the line office space real estate Fairfield County services.

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medical office space real estate Fairfield County

The Benefits Of A Broker In Your Search For Medical Office Space

In order to get the best possible deal for the commercial property of your dreams, choose Rakow Group’s office space real estate Fairfield County services.

A rising number of physicians are seeking to open medical offices outside of hospitals in order to provide more accessible care to their patients. Most notable is the increase in medical offices opening in suburban areas like Westchester, New York and Fairfield County, Connecticut. Many physicians are opening offices in shopping and retail centers close to hospitals, so as to simplify the process of connecting with their patients on a consistent basis.

This all said, in comparison with other industries, tenants seeking medical office space is less common because the requirements are more extensive, thus making the search for the right space more challenging. However, the medical industry is far less transient than other industries that require office space. As a result, once a tenant successfully finds a space that fits all criteria, it is more likely for him or her to remain in this space for a longer period of time than would most tenants of other industries, such as retail or business.

If you are a physician with a private practice in search for medical office space, it would behoove you to find a broker with experience in the intricacies of medical office space criteria. Because for you, this will likely be a longer term investment than if you were in a different field of work. So you might as well make sure you make the right decision by surrounding yourself with people who understand what you’re looking for and know how to get it.

A broker, or rather, a tenant representative, can help you in your search by narrowing down properties to those that meet all of your requirements. Furthermore, negotiating the terms of a lease for a medical office is an entirely different beast than other types of office space. If you don’t understand the ins and outs of what goes into the terms of your contract, someone could easily take advantage of you. Moreover, if you don’t have someone assisting you, that’s all the more incentive for the landlord to do so.

The Rakow Group offers guidance in negotiations for the sale and leasing of commercial properties. We specialize in medical office space, which is a service that distinguishes us from much of our competition. We operate out of Westchester County, New York and Fairfield County, Connecticut. To learn more about our 30 plus years of experience in providing office space real estate Fairfield County services, you can give our office a call at 203-359-5703.

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Medical Office Property For Lease Fairfield County

3 Need To Know Under The Radar Subtleties About Office Space Rentals

There is a fair share of variables that factor into choosing the right medical office space for rent that often sneak beneath the radar. But sometimes the subtlest of details can have the heaviest of impacts on your experience as a tenant. Here is your guide to navigating those subtlest of subtleties and landing yourself the best possible space for you. With the right Medical Office Property For Lease Fairfield County Consulting and Networking Company by your side, you can do no wrong.

Under The Radar Subtlety #1: Who Are The Other Tenants Of This Building?

Neighbors make a big difference, both at home and at work. A good neighbor follows the rules of the building and is respectful to you and the other tenants. A good neighbor does not create burdens, pays utility bills and rent on time, and most importantly, does not disturb your patients, clients, customers, etc. A bad neighbor does quite the opposite, and they can ruin everything. Make sure you know who you’ll be working next to before you sign any leases or contracts.

Under The Radar Subtlety #2: Who Could One Day Be The Other Tenants Of This Building?

You should figure out what the rules are in order to qualify to occupy this space. Different landowners have different restrictions. Some leases include clauses that empowers owners to evict their tenants for peculiar reasons. But sometimes that’s a good thing, as it keeps out the problematic neighbors. Alternatively, landlords who refuse to police their tenants at all sometimes leave room for headaches. So if you’re thinking of setting up an office for a long period of time, make sure you’ve considered who might be working next to you at some pointing the future. Then compare that to the rules of some of the other possible candidates in your hunt.

Under The Radar Subtlety #3: When’s The Move In Date?

Last but not least, when can we get this show on the road? The last thing you need is for you to sign a lease, only to find that you can’t move in until some point in the year that prevents you from focusing on your business. Timing is crucial when it comes to real estate. That’s why you need to know from the beginning what the timing is for making this thing actually happen.

With over 30 years of experience, we’ll provide you with the best commercial real estate consulting and networking services in Connecticut. If you’d like to learn more about Rakow Group’s Medical Office Property For Lease Fairfield County services, give us a call today at 203-359-5703.

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medical office space for rent

3 More Factors To Figure Out When Searching For Medical Office Space For Rent

Rakow Group is a commercial real estate consulting and networking company based in Westchester County, New York and Fairfield County, Connecticut. We specialize in medical office space for rent services. We have over 30 years of experience. With each obstacle we’ve overcome, we’ve grown smarter and more equipped for whatever curveballs the commercial real estate industry wants to throw at us. We didn’t get this far on our own, which is why we’d like to pay it forward by extending to you a few tips on how to approach your hunt for medical office space while protecting yourself from a regrettable situation.

The commercial real estate industry most certainly has some trickery to it. Those who don’t know where to look and what to ask tend to pay through the nose for it. Alternatively, those who utilize their resources effectively while gaining insight from those who actually understand the industry’s ins and outs usually tend to come out on top. The first step to protecting oneself from a bad deal is knowing what questions you should be asking. Here’s where to start.

1. Figure Out Utility Costs

The story stop at the monthly rent. Depending on the size of your space, that utility bill will be a hefty addition to your monthly expenditure. You’re going to want to determine how much space you will occupy, what kinds of lights you wish to use, how much water you’ll be needing, and whichever other monthly service you’ll be utilizing. With this information, you should be able to speak to a specialist and arrive at a realistic estimate. Tack that onto your bottom line and reassess whether this space is worth your while.

2. Figure Out Your Insurance Expenditure

One of the fundamental reasons that medical office space is so much trickier to find than office space for other industries is due to insurance costs. Inherently, the medical industry comes with a fair share baggage and hidden costs. That baggage mostly comes in the form of insurance payments. Many property owners will up the insurance costs based merely on the fact that you wish to use it for medical practice. That’s why it’s important for you to determine what insurance will cost you right off the bat. If you’re not happy with the number, you can attempt to negotiate. But if the owner doesn’t budge then it’s time to look elsewhere.

3. Figure Out Who’s Responsible For Maintenance

Every lease is different. One cardinal rule is not to assume anything, especially when you base your assumption on standards from the residential real estate industry. One of these fatal assumptions is that the landlord is always responsible for the maintenance of a property. This is a feature that can easily slip by a prospective tenant who doesn’t read between the lines.

When it comes to commercial real estate, especially for medical office space, some owners will add a clause to their contract indicating that the tenants are responsible for upkeep, and more importantly, for paying for the maintenance. Moreover, there’s also the chance that if you neglect to perform such maintenance, that the landlord reserves the right to fine you for it. Albeit, this is not necessarily such an unreasonable policy, just so long as you are aware of the implications before signing. So read carefully!

Want to learn more about how to handle your hunt for medical office space for rent the right way? Give Rakow Group a call and let us pick your mind on what it is you’re looking for. You can reach us at 203-359-5703.

Medical Office Space For Rent

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Medical Office Property For Lease Fairfield County

Top 3 Commandments On The Hunt For Medical Office Space For Lease

Finding and securing the commercial office space that will best serve your business is by no means an easy task. Finding the right medical space is even harder. But then again, when has anything worth doing ever been easy? The key to overcoming this challenging but necessary obstacle in the expansion of your business is to educate yourself on how to do it right. The more you know, the fewer mistakes you’ll make and the better off you’ll be down the line. As the most lucrative and reliable Medical Office Property For Lease Fairfield County resources and consulting company in Connecticut, we believe in spreading the knowledge. That’s why we’ve developed our own top ten commandments to land you the best medical office space on the market.

Rule #3: Clarify The Terms And Length Of The Lease

This should be your very first question for a piece of property that interests you. What are the terms and how long will they last? Moreover, how strict is the owner in adjusting these terms and do they fit within your budget? In some cases, you may be able to negotiate the terms to better fit your circumstances. But ultimately this is a toss up. In the event that the terms and length length of the lease are non-negotiable and do not fit within your parameters, you may have to pack up and look elsewhere. You should be conscious of your time expenditure with each property. If it’s out of your price range or if you cannot commit to the specified length of time, then it’s probably best to just move on.

Rule #2: Clarify What Actions Would Follow Once The Lease Expires

Different owners have different policies. Just as is the case with the length of the lease, there equal variety between owners with regards to lease renewal. You must determine from the get go whether or not you can renew the lease, and when you would have to do so. Do you have a responsibility to renew months in advance? Is there an assumption that you will be renewing if you do not inform the owner ahead of time? These are the kinds of questions that you should be asking yourself before you sign anything. Once you know, you must factor these dates into your calendar so they don’t creep by you come crunch time.

Rule #1: Can You Afford The Rent?

As is the case with any business, running a private practice entails its share of speculation. But that doesn’t mean you can’t make educated estimates in order to build a budget. You should speak to your financial consultants and determine a number for monthly revenue that you deem to be realistic. Based on this number, is the rent for the property that interests you a number you can realistic come up with on a monthly basis?

There’s plenty more to know about Medical Office Property For Lease Fairfield County management. But these three tips should keep you on your feet. For more info, contact Rakow Group at 203-359-5703 and we will get you all the information you need.

Medical Office Property For Lease Fairfield County

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Medical Office Property For Lease Fairfield County

HIPAA, HazMats, and Handicapped Parking: Rakow’s Guide To Landing The Ideal Medical Office Lease

Medical Office Property For Lease Fairfield County

Medical office space involves a number of factors that other industries need not worry about. That includes HIPAA compliance (patient privacy), the ability to safely dispose of hazardous and infectious materials, and accessibility both to the building and in parking for physically disabled patients. On top of that, the space must meet these standards while remaining within a reasonable budget. Navigating each of these variables is by no means an easy task. But you can narrow the search dramatically by defining your parameters and utilizing Rakow’s enormous network.

Then, once you’ve found a place you like, it’s time to have a look at the lease. Be careful here. Even if a property owner has no intention of misleading you, commercial real estate by nature tends to be rich with technical language. Effective negotiating takes skill, experience, and most of all, knowledge of just what on earth it is you’re talking about. Here are the strategies that will ensure you get the best possible deal on your lease for the best available property. Rakow Group boasts over three decades of quality Medical Office Property For Lease Fairfield County services. And it is our pleasure to pass this knowledge onto you.

Define Your Needs Ahead Of Time

Running a medical office involves staying on top of things to the umpteenth degree. The factors we listed above are just a few that you must incorporate into your decision. Protocol for the medical industry reaches far beyond those of other industries, which is why you should speak to colleagues and other medical professionals about everything they had to go through when they were searching for their medical office spaces. Do your research and make a list of criteria ahead of time. This will help make the search more manageable and lessen the disappointment, as you’ll be able to disqualify those that don’t meet your standards before you get ahead of yourself.

Take The Disposal Of HazMats Seriously

Having a means of safely and responsibly disposing of infectious substances and hazardous materials is imperative. Neglecting to meet legal standards could result in your employees infecting themselves, their colleagues, and/or their patients. Furthermore, it could quite possibly lead to a lawsuit that will lose you not only your office but also quite possibly your licensing. You can prevent this from happening, first and foremost, by doing your research and making sure that the property you plan to use as your medical office meets the standards necessary for you to do your job property.

Make Sure You Can Uphold Confidentiality And Patient Privacy

HIPAA legally obligates you to secure the documents for your patients’ medical history, diagnoses, treatments, illnesses, etc. It’s your responsibility to make sure your employees have the resources to meet these standards. Make sure there are spaces to store documents and uphold confidentiality. Furthermore, make sure that the rooms in which you plan to see patients can uphold the privacy necessary to protect your patients.

Accessibility Is More Important Than Ever

If there were one place where accessibility to people with physical disabilities was most important, it’d be a doctor’s office. Make sure your patients can reach your office easily and effortlessly. If your office is hard to get to, it will hurt your business.

Would you like to learn more about our expertise in the commercial real estate industry? Get in touch by calling 203-359-5703 and asking about our Medical Office Property For Lease Fairfield County services.

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Office Space For Rent

Do You Need A New Office Space?

It’s difficult to know whether your business needs a new office space. Perhaps you’re worrying about a change, or the hassle of moving, but at times a new office is a must! With Rakow Group, we focus on five signs that suggest you’re ready for a new office space. With the Rakow Group, you can feel confident in finding your next office space for rent, no matter the size or budget.

Here are five clues that suggest a relocation of office space is a good idea:

Restriction on Growth

If you’re a business that has serious plans of expansion, yet your office space is restricting, it’s time to start searching for a new space. You shouldn’t wait until you are desperate to move, as this is likely to lead to an irrational, and possibly, incorrect decision.

You should pre-empt change and seek help from a qualified CRE broker, such as Rakow, who can help you negotiate the best deal possible. If you anticipate a change of office early enough, it can save you time, money and a great deal of stress for you and your business.

Costs Too High

Secondly, if you are spending too much of your profits on your office lease, you should seek a more financially responsible space. An expensive loft offering great views is a good fit for you ego, but damaging to your business and its finances.

This suggests that perhaps it’s time to work with a new CRE broker who are able to offer you a wider variety of attractive properties, more suited to your budget. The Rakow Group has a number of properties available to suit all types of budget.

Lack Of Privacy

Although it may seem trendy to have your employees working in a large, shared, space together, bear in mind that people need privacy. Usually, individuals need privacy as much as they need a community, in order to complete their work.

If your current office space lacks private areas for meetings or making phone calls, you should start searching for your next office that offers more privacy. Depending on the individual, people like a quiet and distraction-free area, to really get their head down and be productive.

Not A True Reflection Of Your Business & Brand

If you’re a fresh and innovative tech startup, you don’t want to be working in an office that is more suitable to a 1940’s law firm! When your office space contrasts with your company’s culture, it can have a negative effect on your employees and your reputation.

It’s very important to work in a space that both complements the brand you’re building, as well as the products/services you’re selling. Your office space acts as a conscious reminder to all employees, the business’s core values and everything you want them to represent.

Struggling To Retain & Attract Talent

Is the amount of people your companies turning over increasing? Are potential new employees turning down brilliant job offers? Of course there could be a number of reasons for this, but one reason you should never neglect, is your office space.

People want to work in an engaging, inspiring and clean environment in order to maximize their full potential. If your office space is messy, noisy and disorganized, it’s time to search for an upgrade of office space. If you don’t consider changing office environments, you will risk losing talented individuals on a regular basis.

Conclusion

Whatever your hesitation regarding a change of offices, the consequences of not moving to a more engaging and productive environment, can be far more damaging than the temporary hassle of relocating.

If you and your business are interested in a new office space for rent, you should get in touch with Rakow Group now. Offering superior negotiation skills, with a friendly and confident customer service team, they are sure to find you the best deal for your next office.

Give the Rakow Group a call now on (914) 422-0100 or (203) 359-5703.

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