The Factors Affecting Office Rent

There are many factors that affect office rent

. It is important to analyze these factors to determine which ones can be controlled in order to reduce costs. Businesses, especially start-ups are keen on reducing costs, hence the need to find affordable bases for their operations. It is important to note that offices are a requirement for every business.

Location is a key determining factor when rents are being computed. Buildings that are built on prime land in the city or town normally attract high rents. This is because they are close to government offices, corporate customers and restaurants. It is important to note that parking spaces in such buildings are limited and reserved for senor executives. This means that parking spaces may be unavailable for low to mid level employees.

The offices inside a building are normally classified. For instance Class A offices would obviously attract higher rents than Class B offices. Therefore, companies should think about the type of offices they can afford when looking for suitable rental units.

Rents are normally calculated based on floor area. In some countries, the amount is calculated in terms of square meters. However, square footage is the most popular unit of calculating office rent. Some spaces come with corresponding parking spaces in some buildings. This can be a plus especially if parking fees in the area are very high.

It is difficult, especially for start-ups, to find the right spaces without professional assistance. Ideally, entrepreneurs should consult professionals for recommendations and tips. This will ensure that they get the best rental units for their specific types of businesses. The right space should be able to accommodate growth of the business in the future.

Normally, renters are required to pay a certain amount of money as deposit before they move into their offices. The deposit can be very significant, and some start-ups often have to save or forego some things in order to come up with the amount. Some buildings have some hidden charges such as parking fees, common area maintenance, garbage collection, and rent escalations. It is important to consider these factors before signing any contract. This is because the hidden charges will increase monthly rental expense significantly.

Apart from coming up with the finances to start a business, entrepreneurs also have to come up with office rent plus a significant deposit. This is the main reason why many entrepreneurs normally run their businesses from the basement of their houses before moving into a more suitable location as the business grows.

by: Lena Shattuck

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