What is the True Cost of Renting an Office?
When the time comes to secure your first office it’s important to understand the full costs involved. In this post, we break down the charges, fees, and other financial responsibilities you’ll likely encounter when securing your space.
Upfront Payments
Renting office space, particularly in a larger city like London or New York, is going to incur upfront costs to your rental agreement. Though it can seem complicated, using an experienced broker can help breakdown what these will be and what they mean.
One thing that you may need to pay is the agent’s fees. This will often be a percentage of the monthly rent. First and last months’ rent is another payment that you will need to make upfront.
Recurring Bills
Unless you’re working within one of the many serviced offices in London or other major cities, then you’ll be responsible for paying the bills for space. Each utility should include a fee for starting the service and/or setting it up. Here are a few bills you can expect to have to pay for your space:
- Internet
- Electricity
- Water (bathrooms, kitchen space, etc.)
- Cleaning Services
- Waste Services
- Phone
- Additional needs based on your business
You could consider any direct cost for future expansion plans in your estimations too and what these might entail.
Rental Costs
The typical cost of renting office space will also include the rather obvious rental payments! These are based on a series of different factors, but you should certainly shop around to find what works best for you and your company.
Aspects of the space that go into determining the monthly rent include the following:
- Location
- Square Footage
- Amenities/Facilities included
- Local Taxes
- City codes and ordinances
Shopping for rental space is far easier if you know exactly how to determine the underlying cost of the space. That way, you can not only find the right space for your business, but you can negotiate the monthly rates successfully.
Knowing Exactly What It Will Really Cost for Your Office Space!
Crunching the monthly numbers for your business’ budget can be made simpler once you understand what is involved; finding the real cost of the space, understanding what bills will be incurred each month, as well as knowing what you will be expected to pay upfront form a good the basis for finding the real cost of your new rental space.
Are you looking to rent an office space?
