Discussion about Office Rental Rates
When sourcing office space rental, the rental fees are usually a prime consideration for companies. The costs must be within the available budget. Additionally, most companies want to know that they are getting the best deal possible on their space for rent.
Size of the Office
Whilst there is no formula for working out appropriate rates for renting an office, knowing the exact size of the office for rent is imperative. Most landlords base their office rental rates, at least in part, on the size of the commercial premises. When you know the size of the office in square feet or square metres, you can calculate how much you are paying per foot / metre by dividing the monthly rental figure by the size. The bigger the office, the more you will pay. You can compare the cost per size unit with similar rental properties in the same area to have a better understanding if a landlord is asking a fair market price.
The location of an office has a huge impact on the office rental costs. Some areas are seen as being more desirable than others, in particular places within the heart of a city or in the central business district. Certain neighbourhoods can be seen as being more fashionable, trendy, or hip, and there are areas that are seen to be up-and-coming. Of course, the price to rent an office in more sought-after areas, with prime real estate, will be higher.
It is not only the actual office address that can affect an office’s rental rates, but also the facilities and services available in the locale. If there is a major bus, train, or metro station close to hand, you can generally expect the office to be more expensive to rent. Good transportation links can bump up commercial rents considerably. Availability of car-parking is another factor that can increase the monthly fees for an office.
An office that is surrounded by facilities, such as shops, restaurants, cafes, and supermarkets, is a lot more convenient than somewhere that is tucked away in the middle of nowhere. You can expect, therefore, more expensive rental rates for such business premises.
Similar businesses in the neighbourhood can make a property for desirable, and can increase the lease amount.
On occasions, the terms of office leasing can have an effect on the rates. A landlord may charge more, for example, for short term office rental, lowering the office rental rates for longer lease periods.
A property lease could include additional charges for extra services, such as cleaning and maintenance agreements.
A top tip, in the case of lease renewals, is to start negotiating renewal terms well in advance of the end date. Up to six months in advance is ideal.
The actual property that houses the office is a factor when considering office rental rates. If a building is very new and modern, or if it is a historic or heritage building, monthly rental costs will invariably be higher than the costs of a more non-descript property. In addition to age, building facilities, such as elevators, heating and air-conditioning, bathrooms, and reception areas, also come into play.
Lots of research really is the best way to ensure that the rental rates for your office are fair and reasonable.