Lease Office Space Based on the Size not the Improvements
Filed Under Ask The Expert, Business and Life · Tagged: construction, Lease Office Space Based on the Size not the Improvements, size of space, space plan
What I recommend to clients – if the space is not built out perfectly don’t worry, the size of the premises is what is going to save you the real money. If you can find the perfect space designed exactly how you want (almost impossible but what tenants frequently expect to find) you can save an average of $2 to $4 per square foot on rent. Here’s an example of the math for taking space that is a little too big vs constructing brand new space of the right size.
1000 sf – $30 per square foot rent rent – $0 construction allowance – $2500 per month
850 sf – $35 per square foot -$25 construction allowance – $2480 per month (you pick the paint carpet colors!)
Go into your tour thinking:
1) Perfect build out – perfect size – Lease the space!
2) Inefficient build out (or raw space) – perfect size – engage the landlord for a space plan and construction estimate – you may be surprised at the money you can save on efficiently built space
3) Bad layout and wrong size – don’t try to “make it work” as it will simply be too expensive – hopefully there’s more product to see on your tour!
Keep in mind that by building new space for your company you have a fantastic opportunity to enhance your brand. Imagine how good it will feel walking into new office space designed for your companies needs, employees comfort and your business success! I have found most clients never regret building their own space, just get a good contractor and and you will notice the rents aren’t very different and its worth it!
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