Renting an office can be very expensive as there are many financial factors to consider. It is also a long-term investment that you need to plan for financially. For every business owner, getting an office is a process that should be approached with the utmost care and consideration. For the most part, the money factor is the one that’s most challenging to go about.
There are many things that determine the total cost of renting an office. More importantly, the location, space and city you wish to set up office in can cause costs to vary. However, there are other things that also play a part in determining the value of renting office space, as explained below.
The rental rates
It will be easier to estimate both your monthly and annual rent if you have a clear view on the rental rates of an office space. In order to effectively allocate a budget prior to looking for office space to rent, you can research on the types of rental rates that you are comfortable with. With that done, remember to factor in additional expenses that will likely be included in the lease deal. Most rental rates differ with the class of building, the neighbourhood and the amenities included.
The base rent
The base rent is the initial rent, a minimum figure used to initiate an increase in rent over time in the lease agreement. Other additional costs such as office maintenance and utilities will vary, which your lease contract will dictate. Some will be your responsibility while other expenses will be paid for.
Access to different areas
The space you rent as an office is the usable square footage. In addition to this, the rentable square footage includes common areas such as lobbies, stairways and vestibules. In other words, these additional spaces are also rented to you and are the areas that you have access to or can use.
Office remodelling
After identifying the office space that you like, you will need to transform the empty space into a functional office—that is if you are not renting a fully serviced office. While remodelling an office can allow you to customise it for your business, having a fully serviced office can definitely help you to cut back on costs. So, if remodelling is not a priority, do consider a fully fitted office instead.
Business budget
As one of the significant concerns when it comes to renting offices, pricing can affect a business’ budget. When it comes to affordable rented office pricing, you should always consider the ones that suit your business needs well while also staying within your budget.
Renting an office is not as complicated as it might seem, even if it is the first time doing it. After understanding these factors, early preparations will help you deal with every step of the process, allocating enough time to each.