6 Costs To Budget For Prior To Finalizing An Office Lease Contract

So you have found the perfect office space and are getting close to finalizing lease negotiations. Great job so far! Now you need to find out the office lease costs from the landlord so you will know exactly how much you owe at lease signing. A lot of companies never do this ahead of time and get sticker shock when they find out how large of a check they have to cut when signing the lease. Below are a few costs that you should plan and budget for:

Security Deposit

At lease signing you will typically be required to write a check for the security deposit. This is usually going to be equal to one months rent, unless you negotiated otherwise.

First Months Rent

In most cases the first months rent will be due at lease signing regardless of whether you have negotiated free rent. For example if you have 3 months of free rent coming to you the first months rent will still be due when you sign the lease however it will be applied on the 4th month. Therefore your next payment won’t be until the 5th month. Make sense?

Phone and Internet Data Cabling

Most Landlords don’t pay to have this done for you. If there is some second generation phone and data cables already installed then great! All you have to do is have you vendor turn on the service. If the space is new or does not have existing wiring in place you will need to hire someone to do this for you. Typical costs range from $50 to $100 per cable drop.

Commercial Insurance

The landlord will have insurance for the building YOU will need to have general liablity and property insurance. Expect to pay anywhere from $500 to $1500 per year depending on your level of coverage. Workers Comp insurance is not requred in Texas so make sure you remember that when the lease contract says you have to have it.

Moving Costs

Obviously you need to move your furniture and personal items. Make sure you get at least 2-3 quotes from reputable commercial movers in the area.


Got get that new stationary also. Depending on where you purchase it could take a few days to receive it so plan ahead.

There are many other costs you should consider however these should get you started.  The important thing is to plan ahead and know how much things are before you sign on the dotted line!

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