How to Save Money When Renting Office Space

save moneyDid you know that office space rental is the second or third biggest expense of a company?  I believe every business owner would like to lessen the occupancy cost of their company. Below are a few tips that you can use to help minimize your office space lease costs.

  • Do an annual review of your office space needs and lease budget.
  • Start the lease renewal process at least 6 to 12 months before your lease expiration date.  Larger companies should start the process at least 12 to 24 months in advance if possible.
  • Lease space according to your needs.  Before settling for any office space, seek help from an architect or space planner for optimal space size.
  • Create competition among building owners.  If building owners know that they have competitors for your occupancy, they will be aggressive with their rental offers.
  • Consider the additional expenses that come along with lease renewal or relocation.  Although rental rates should be given priority, you must also think about the building maintenance cost, parking cost and relocation cost.
  • Check out the current construction and renovation cost. Prior to contract signing, enquire about the price of space plans and build-out costs.
  • Ask the building owner about the initial estimate of the building’s operating expenses.  It’s also a good idea to know what they were the last 3-5 years.
  • Do not ignore renewal options.  Take heed of the notice periods and rent penalties.
  • Study the overall occupancy costs.
  • Negotiate for a sublease arrangement even if you don’t need it immediately.
  • As much as possible, go for a flexible lease term. Be sure that you are allowed to expand, reduce space and cancel other terms.
  • Get ready for worst-case scenarios. Plan for mitigations in case unexpected things may happen such as building condemnation and suspension of building services.
  • Continue the service of your broker, architect and contractor. Since you employ their services, they will consider your interests as priority.
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