Without galleries — the point of entry for both artists and buyers — there would be no art market. But these businesses are also legendary for their lack of transparency. Information, especially about finances, seems opaque and secretive by design.
With this in mind, we set out to learn the basic mechanics of running a gallery in New York City circa 2023 — what it costs, for everything from rent to insurance to other, less anticipated expenses. New York was a natural area of focus, as it is home to more than 760 galleries with at least one paid employee; that’s 16 percent of all similar galleries in the U.S., more than any other city, according to a 2020 analysis by the art economist Clare McAndrew. While much attention in the press is lavished on the handful of megagalleries routinely selling multimillion-dollar paintings, we focused on a group of art dealers with five or fewer full-time employees who are more representative of the small or midsize businesses that make up most of the industry.