First and foremost is flexibility. An office rental vs an office lease or purchase is for a shorter period of time. The rental term is typically anywhere from month to month to up to a year. As a result, renting can have a lower impact on your bottom line and may show up as less of a liability on your balance sheet than a longer office lease. You also won’t have to commit to a long-term lease that might not suit your future needs. This is especially important if your business is still in a fast growth mode or if you just aren’t sure how much space you will need in the future.
The downside to an office rental is that you have no rental rate protection in a market where the rents are increasing and that you only control the space for a short period of time. We always try to get our clients options to renew at predetermined rates to try to alleviate these issues. Another downside is that tenant improvement allowance are usually non-existent because of the shorter rental terms. So, you need to find office space that fits your needs as-is.
Office rentals are located in all the typical locations that leases are offered. Although, they can be harder to find, since most landlords prefer longer terms. They are out there, but you may need some help in finding the right one. A good office tenant representative can help you find and negotiate for one. They can be located in high-rise buildings or along store-front property, and even in free-standing structures. They can be in either a totally separate or a shared space; the basic concept behind an executive suite with services added on.
If you want an office rental and get the best deal possible, avoid costly mistakes and have a hassle free experience, we can help! For more information, contact us.