Putting up a business usually requires having an office space to conduct businesses and accommodate clients. Whether leasing or buying a space depends on the budget and preference of the business owner.
Leasing or renting each has its own advantages and disadvantages. While leasing requires a lower cost upfront, the long-term effect of monthly fees in the business may be quite costly compared to owning a unit. However, start-up businesses may require renting an office space before settling on owning a specific unit.
During business start-up, it is advised to initially rent the office space and then consider purchasing a unit once return on investment reaches a certain level. In this way, should the business fail to make an acceptable profit, the rental can easily be cut off. This is an effective method in order prevents potentially huge losses and sunk costs.
There are several factors to consider when renting an office space such as the space your business requires now, if it needs storage or warehouse space, and how much space it will require in the future. Thus, careful and meticulous planning is necessary when considering the office space. As a general rule of thumb, allot 175 to 250 square feet of usable space per person.
An office space needs parking spaces for you and your employees. However, the clients must have parking spaces as well in order to effectively and efficiently run the business. If you cannot provide the parking space, then you must search for a unit with a nearby public parking space with a relatively low cost and convenient location.
To lessen cost, consider sharing the unit and other amenities such as the reception area, office equipments, and the bathroom with another business firm. This may save you hundreds of dollars in the long run. However, there is a trade-off. This means having less privacy for your company and your employees because of the shared space with other firms.
It is also best to consult or seek the help of commercial real estate agents. This will save you time and effort in finding, negotiating, and arranging all necessary documents during the transaction. Commercial real estate agents can be invaluable in your search for the perfect space. They have the knowledge and experience necessary for any start-up business to start off right.
Remember to record everything and review all pertinent documents. Discuss any clarifications with your landowner or agent before signing any contracts to avoid miscommunication in the future.
