Like most real estate sectors, the rental market for commercial office space has increased in cost significantly since 2018. Based on data gathered during the second quarter of the year, the asking rents rose to 3.4 percent per year to $25.71 per square foot. Yet despite the increase, small businesses still opt to rent office space instead of buying their own buildings for a lot of reasons. These include minimal financial commitment and tax deduction. They can also provide more flexibility for expansion. Renting an office space vs remote working can be beneficial for your business, especially if you know how to choose the right location. But aside from looking for a good venue for the operation of your business, here are some tips that you need to consider if you want to rent your office space.
Consider Your Budget
Before signing the lease for your office, determine whether you can afford the big move. You need to ask yourself and talk to your financial advisers to ask if the time is right for your company to have a larger space. When choosing the office, you must think about how the new office rental expenses will affect your bottom line. Think about your other expenses like the furniture to purchase or rent, and other necessities including your small business insurance, utilities, and Internet services. In some cases, an executive suite or coworking space may be a better answer than going out on your own. Typically, they are furnished and you know the total cost each month without having to pay other expenses such as utilities.
Think About Your Staff
If you are running a small business with a few team members, you need to look for a space that can fit everyone in. The area needs to be spacious enough for the desks of each member of the team. If you are still planning to expand, you must allocate a few extra spaces for future employees. The office rental must also be conducive to the health and safety of your staff. It should be located in a safe spot where access to hospitals, police and fire stations is readily available.
Study The Lease Thoroughly
Always have a clear idea about what you will need in the space. If possible, consider taking several trips to different locations to know if the area has the right vibe for your business. Your tenant rep must also know how to negotiate with the landlord to give you the best discounts. Make sure they are experienced, like the ones we have at OfficeFinder. Thoroughly read and analyze the contract before signing the papers. The document must point out all the provisions that both you and your landlord had agreed upon. Make sure to thoroughly review the rules and relgulatons, too. Otherwise, you may not notice the necessary rules that coudl affect yourbusiness operation.
The process of renting out an office space for your business can be tedious and time consuming. That is why having a tenant representative on your side is so important. You need to think and consider a lot of things before finalizing the deal. Your tenant rep will make sure that you don’t make any costly mistakes and consider all the necessesary factors. But as long as you and the owner can come to agreement when making decisions, this will set a solid contract that will last for years to come.