Rent Office Space In Your City
There are many different types of office space available for rent. Learn more about selecting the right office space and how much it costs.
One of the biggest decisions you must make when starting a business is choosing a location. The majority of small businesses do not have the income to buy their own property, instead choosing to rent office space. Renting not only saves on initial costs, but it gives you access to other resources already included in the building. There are many considerations when looking at a rental space, including the size, type of building, customer accessibility and where the building is located.
In addition to the building, you must also consider who is renting the property. There are many different costs associated with leasing a building, such as security deposits and liability insurance. Selecting an office space is not a decision you want to make lightly, and it is worth researching different locations as well as negotiating techniques. Listed below are some common tips for choosing an office space in your city.
Types of Office Rental Space
There are several different types of commercial property available for rent, some with several subcategories. Most small businesses start with traditional office space. There are three different categories of office space, Class A, B and C. Class A buildings are prestigious office spaces, with high quality security systems and many on site facilities. The building itself is well maintained and located in high profile areas. They are the most expensive type of offices.
Class B offices are considered the norm for the majority of small businesses. These are buildings located in good, easy to access neighborhoods. The buildings include additional perks and facilities, but not as many as a Class A. Class C offices are much smaller and typically not intended for customers. Instead, these are used as dedicated workspaces, such as setting up a call center or serving as storage for digital stores.
Retail office spaces are commonly located in a shopping center or mall. The size of these spaces can greatly vary, with larger locations sometimes divided into multiple offices for rent. These locations are commonly rented by traditional stores, with enough space for many products and customers. Another example of retail spaces are restaurants.
Industrial buildings are some of the most expensive to rent and are marketed towards larger companies. These locations are normally outside of urban areas, away from large customer bases. Industrial locations are meant primarily as workspaces, such as manufacturing and assembly buildings. Some locations also function as storage warehouses or research facilities. Most small businesses only rent out a portion of an industrial location to use as a storage space or distribution center.
Space and Facilities
When you are looking at properties, you must decide how much space your business needs. When considering your special needs, make sure you leave some room for growth. If you plan on hiring more employees, visualize where you will set up new workstations. If you plan on selling new products, figure out where you will store the new merchandise.
Another consideration is facilities. The two biggest facilities for business include bathrooms and kitchen space. In smaller buildings, it is common to share these facilities. Shared facilities are typically less expensive as buildings with individual facilities.
Some office space includes furniture. Based on your needs, this is either a great way to save money, or an inconvenience you must work around. If the furniture does not match your needs, make sure you ask your landlord in advice if you are allowed to move the furniture around, or even remove it entirely from the building. Large spaces typically provide more flexibility, allowing you to move items around or even make minor changes, with approval, to the rented space. In addition to the size and location of furniture, be aware of the number of sockets and connectors in the space.
When you are negotiating a lease, make sure you understand what you are responsible for maintaining and what the landlord takes care of. One of the most important questions to ask is who handles repairs in the office. If your landlord is responsible, ask how to report when a repair is necessary and the general turnaround time. If your landlord lives far away and rents multiple properties, it may take several days for them to acknowledge your request.
There are several parking considerations when looking at office space. If you share the building with other businesses, find out which spaces are reserved for your employees. You must also ask if customers and employees have different parking locations. Be sure to ask if there are any parking fees for specialty vehicles, like delivery trucks.
Costs of Renting an Office Space
There are multiple costs associated with renting an office space. The most upfront cost is your monthly rent. When you are negotiating with your landlord, ask if the rent is fixed for the length of the contract, or if it is subject to change. Whenever possible, prioritize fixed rent.
The next cost is your security deposit. How much you pay greatly varies depending on the landlord, with deposits ranging from one to six months of rent. When negotiating your deposit, it is not uncommon for your landlord to ask for bank statements or other financial documents.
Not all businesses include utilities in the cost. Even if they do, you may want an additional phone or internet line, depending on the size of your company. Another expense is liability insurance. This is not provided through your landlord and typically must be setup before you move into the property.
Tips for Contract Negotiations
Renting leases are lengthy, but make sure you read through the entire contract. If possible, consider hiring an attorney to look over the paperwork to make sure it is a fair deal. If there are any details missing, such as who is responsible for maintenance, clarify these with your landlord before signing anything. If you have any special requests, such as reserving specific parking locations or having unrestricted access to storage, make sure these clauses are included in the contract.