Every office tenant wants a nice office that is within their budget however they are not sure how to make that happen. To be able to achieve this you need to have an understanding of what drives costs and how to manage them. You can do try to manage this on your own or increase your success rate by engaging a local commercial real estate expert to help you find office space for rent.
4 Factors that Impact the Total Cost of Leasing Office Space
Office Location that You Choose
Labor and rental rates are impacted by the location. The more desirable the location the higher the lease rates. For example Austin office lease rates are highest in the downtown area. Whether you are looking for space for the first time or considering renewing at your current space you need to get into the market and look at spaces to determine the business locations that make the most sense. The landlords want to achieve the highest rents possible so by doing a thorough evaluation of the market you can create a little competition for your tenancy. You might also find hidden opportunities that you never knew existed.
Layout of the Office Space
Many companies today are trying to make their office layouts as efficient as possible so their is no wasted unused space. You want to maintain control of the design and finish out process as much as you can. Focus on doing more with less and don’t lease more office space than you need. Landlords have to maintain certain parking ratios such as 4 spaces per 1000 sf so if you plan on hiring many more people make sure to focus on buildings that have better than average parking ratios. Remember focus on minimizing the square footage, have an efficient office space design, and manage the construction costs
Structure of Rent & Negotiations
Good deal are not simply found but are negotiated. Make sure to negotiate the rate and any concessions based on existing market conditions and give yourself plenty of time to go through the process. If you put yourself in a bind such as waiting until the last minute you will not have the time to thoroughly negotiate effectively. Make sure to structure the office lease in a way that compliments your current and future needs & objectives.
A Good Team in Your Corner
You need an experienced team in your corner to help manage all of the above. The below professionals will assist you in the site selection, negotiation, space planning, and construction of your new office.
- Commercial realtor that specializes in office space tenant representation
- Commercial real estate atttorney
- Architect or space planner
- Contractor and/or construction manager