Unless you run a business from home, the company needs an office space. Often times, the first office is a major milestone in the life of the business. However, the process can be complicated, burdensome and damaging to a small business owner’s success. When it comes to renting office space small business successfully, you must take into account these factors. If considered carefully, they will save you thousands of dollars per month. Additionally, you will put your small business in a position to grow long term.
Office Spaces Grades Matter
When renting office space, the Class A, B and C commercial buildings will dictate your pricing terms. Just to be in a class A building, you could end up paying more in rent. Due to the high standards and Atlantic remodeling, you will end up renting at a premium price per square foot. In fact, some Class B buildings offer a 30% discount upfront. However, the office can be very similar in atmosphere and environment. It is really up to you to finish the office with business interiors that are appropriate to your industry.
Search Commercial Office Space
Of course, renting an office space requires a lot of searching. This is not something you want to do impulsively. Most small businesses will look on the major listing sites. They are great places to start. However, you can take your commercial space search one step further. Take a drive around the area and look for buildings that you would want to work in. Most often, they will have a sign saying “FOR RENT” with a phone number too. If you don’t live close to the area, you can use Google Maps to “drive” the streets as well and zoom in on the signs to call. Also, check out Craiglist and compare a lot of listings. You will be sure to find a good office space deal for your small business.
Fight For Every Square Foot
Especially for small businesses, commercial realtors will try to push you into a bigger space than required. While it might seem nice to have more space that needed, it will dramatically increase your monthly renting rate. To keep your overhead costs low, try to rent as little space as possible. The difference between 300 sq ft and 450 sq ft might not seem like a lot in a single room office. However, the price is 50% for the additional space. Staying realistic about your office space requirements, you will be in a better business finances position to rent space cheaply.
Negotiate Your Lease Length
Next, realtors and landlords will try to get you locked in long term. Leases can range anywhere from 1 month to 5 years for office space. The standard office space renting lease is approximately one year. Depending on your years in business, you can always offer to sign a 3 month lease. Or, sign a 6 month lease. These terms are actually more common than the landlord wants you to think. You might be surprised to find out just how flexible rental agreements are. You just have to negotiate a bit.
Leasing In The Right Neighborhood
Most importantly, the location of your small business office space should be carefully researched. Your business thrives on it’s employees and customers. Do an analysis of where your customers are living and working. Also, research the per capita and house hold income levels in the area. Will these geographic factors help or hurt when relocating your business? If you need highly skilled employees, a re-developing downtown with low income residents might not be the best fit. Make a strong case for why the location of your business makes sense – renting prices aside.
These are some of the most important factors renting office space small business can use. Take your time with the leasing process, negotiate your length and find a great rental rate. If you can get a lower price per square foot, that means more working capital for your business. Finally, make sure the office is located in an area that has access to the people you need. When you follow through on these small business office space factors, you will be much better off than most first time lessees.
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