Renting a business premises or an office space is without doubt, one of your biggest expenses of operating a business. If you are new to hiring office space you may not be aware of the current market and how to determine whether you are paying too much for your office space or perhaps too little, which is why it pays to do your homework before you embark on renting a space.
Check Out Similar Offices In The Area
What is the average going rate for office space in your area? Office space rental rates are predominately charged per sq. feet, so make sure you don’t have your eye on an office space that is too large for your needs as this will result in unnecessary costs. Where you live will also dictate the overall price of the office space. For example; an office of the same size located on an industrial estate out of town will command less money than an office in the heart of the city, where you will likely pay a premium.
Bigger Isn’t Always Better
Depending on the size of your business, a smaller sized office can be perfectly adequate for many businesses. Unless you have a lot of staff or plan to recruit more or have frequent face to face meetings with clients and businesses and you genuinely need the room, ask yourself is it worth paying extra for the larger space if that space is going to be unfilled?
Find out What Services Are Included in the Rental Rate, this includes:
- Utilities; Heating, electricity, water, etc.
- Telecommunication services i.e. internet
- Parking fees
- Security fees
- Mail delivery fees
Facilities And Amenities
Is there on-site parking? Is the office near a train station? Accessibility is everything, not just for your employees but if you have clients visiting, it is important to choose an office that is within reasonable access. An office within walking distance to shops is desirable and convenient but this again, will result in a higher lease.
If you are considering renting an office space that is new or has been unoccupied for a long time you’ll need to find out or anticipate the cost of your administrative and technology set-up and make sure it’s within your budget.
Make Sure You Read The Lease Small Print Before You Sign
- Find out the exact deposit required
- What are your rights when it comes to discontinuing the lease? How much notice are you required to give and will there be any fees?
- Also make sure you find out exactly what the lease covers before you sign to avoid any unexpected costs.
To reiterate, to keep the costs of office rental to a minimum, make sure you:
Don’t rent a space that is unnecessarily too large for your requirements.
Shop around for competitive rates, though bear in mind, even small office spaces can be considerably expensive in premium areas.
In the current economic climate, do not be afraid to try and negotiate a lower monthly rate.
Crispin Jones is the resident writer for Louch Shacklock – the premier property consultants for the Milton Keynes area. Crispin has a love of property that spans back to his first ever house purchase in 1983.