4 Critical Factors To Consider While Searching For An Office |
Posted: April 25, 2017 |
Unlike renting or buying a residential apartment, searching for an office space can be a little daunting. For individuals and entities which have not been involved in renting a space for office, certain factors which have to be considered might seem unclear to them. Thus, in a bid and quest to salvage, here is a fascinating insights into four most critical factors for renting an office space: Get down to the business One important factor to consider when renting as office space is the nature of the business for which the office will be used. Before driving around town in search for a space, an extensive homework relating to the type of business has to be done. While some offices can be situated in local and remote areas, others have to be operated in cities and central areas where there is high patronage of customers.
A little small space and the office is chocked, too much space and there too much left to waste. One very important question every individual or entity searching for space should ask themselves is how much space is needed. The amount of space needed is factored by the number of employees, furniture equipment and fittings, other gadgets- or in short and simple terms, the size of the proposed business. It is also critical to envisage the business in order to determine whether expansion will be needed in the future or not. While the space be big be big enough for a start, it might become congested in the long run. What about the price tag? For the most part, folks who have little or no experience in renting office spaces traverse the internet, drive round town and tour places in search for contact details of real estate agents and the funny thing they do when they put their hands on the details is to call and negotiate for property which they have never set their eyes on. There is a lot more to that. Certain terms come into play and it is imperative for a potential lessee to clearly understand this terms before proceeding to negotiate for rented office spaces. Net square footage In commercial real, net square footage or carpet-able space refers to the exact space required by a potential tenant compared to the gross square footage. Gross square footage It is used to describe the amount of space in the be-all and end-all available to a potential tenant. Loss factor This is the difference between the total amount of space and the usable space. In the United States, from buildings to buildings, there is disparity in loss factor. Examples are hallways, basement and lobby. Say you have leased a commercial space of 800 square feet. If the loss factor is 200 square feet, the amount of space the tenant can use is 600 square feet. That said, when negotiating for a lease, a rational tenant calculates and takes account of the loss factor. Know who is who in the commercial real estate market Landlord, landlord agent, tenant broker and tenant are the four key players in the market. The landlord is the space owner. Landlord agent comes into the scene when a large property is involved to do the marketing for the landlord. Tenant is the undersigned to the rent agreement. The broker acts on behalf of the tenant. Brokers and agents get compensation in form of commission from the tenant. For startups and small businesses, eliminating middlemen- broker and agent will reduce the total cost for renting an office space.
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