As I mentioned in last week’s blog post, we’re doing a six week Cool Tools Blog Series that will provide you some super cool tools you can use to find the perfect office space in Austin.
First in our series will be a cool tool that will help you determine your space costs and how much you’ll need monthly to pay your lease.
But, before you determine how much your office space might cost, you’ll need to figure out how much space you need.
A few weeks ago before we decided to do a series, we posted a blog on how to calculate how much space you’ll need—check that out if you need to determine how much space you need first.
Now, on to our cool tool—Space Cost Calculator Tool
There are a three pieces of information that you’ll need in order to use the tool:
- Size of the space
- Base rental rate
- Estimated Operating Expenses or Triple Net (NNN) (per sf per month)
One thing to note is that most leasing agreements are quoted annually with the exception of warehouse space, which is typically quoted monthly. You can use the tools to determine a monthly cost or an annual cost (for annual, just scroll down the page on the tool).
We’ve used our own tool to provide you with an example of calculated annual space costs:
Size of Space (square footage) 5000 Base Rental Rate (annual rate per sq ft) $20 Estimated Operating Expenses or NNN(annual rate per sq ft) $10 Total Rate (annual rate per sq ft) $30 Monthly Lease Costs $12,500 Annual Lease Costs $150,000
Note, these numbers are just an example and are not industry averages. Another thing to note is that not all offices have operating expenses as these services could be included in the building rental rate.
See how easy that was? Anyone can determine their lease amount with just a couple pieces of information.
Even though these tools will definitely help you during your office search process, it can be overwhelming trying to figure all this out on your own.
That’s why hiring a tenant representative to help you and negotiate on your behalf is your best bet as they are versed in lease terminology and have access to the best possible spaces.
Good luck in your space search and look out next week for the 2nd blog post in our Cool Tool for Office Planning Blog Series.