In 2020, a host of big-name businesses, like Tesla, HP, and Dropbox left California for Texas, placing the Lone Star State in the number one spot for business relocations. The main reasons for this mass migration are favorable taxes and quality of life.
Although moving to another state isn’t ideal for every business, finding a commercial office rental in a cheaper place can help you grow your business faster.
So, if your lease is nearly up, and you’re looking for greener pastures, keep reading. Here’s your commercial office rental guide to help you find the ideal space for your needs.
Types of Commercial Offices
Before you start your search for a ‘commercial office rental near me,’ it makes sense to know what you’re looking for. Most office spaces fall into one of the following categories.
- Coworking spaces
- Serviced Office
You can transform any space into the format you need, but it’s much cheaper to rent one that’s already set up.
Choosing a Good Location
Moving to a cheaper area is one of the main reasons for relocating your office. However, if it isn’t going to benefit your business you’re shooting yourself in the foot.
These are the best commercial office rental tips for finding a location that can help grow your business:
Your new location must suit both your existing customers and your employees. Always consult your staff before choosing a new location, it’s expensive to replace existing workers, and they’ll take all their experience with them.
If you run a retail operation, foot traffic comes into play too. Don’t only look at numbers, though. Consider the type of people who pass that way.
Does your business cater mainly to millennials? Locating your office in an area that’s filled with elderly folk won’t help your cause at all.
Transport and Access
There’s an adage that suggests you should walk, drive, and fly around your desired commercial location before you commit. Flying’s a little extreme, but you should study aerial photographs of the area to get an idea of road infrastructure.
If your business needs rail or airport access, this narrows down your options considerably.
While driving around, make a mental note of traffic congestion and the availability of parking close to the premises. Can potential customers reach it easily?
You must choose an area that’s zoned for your business activities. For instance, you can’t operate an industrial shop in an area zoned residential.
Some other common zoning types include warehouse space, office park, retail, and restaurant.
Space Needs and Amenities
The amount of space you need usually depends on your storage needs as well as your staff complement. If you have a restaurant or retail store, you can work on about 15 square feet per customer.
Office space requirements depend on your layout. An open-plan office with workstations needs less space than one where everyone has a separate desk.
You may also need space for a lobby area, break room, conference facilities, and a canteen. Other amenities include:
- On-site security
- Outdoor areas
- Loading docks
- Outdoor spaces
- Training rooms
Take the future growth of your business into account, too, and don’t forget parking bays.
There are two important terms to know when it comes to renting office space. One is USF (usable square footage) and the other is RSF (rentable square feet). RSF includes the common areas mentioned above while USF refers to the space you’ll occupy.
If you choose a shared office building, you might share some costs for RSF with other tenants.
Once you know exactly what you’re looking for, and where, it’s time to start your search.
Get Commercial Office Rental Help
You can DIY the task of finding your own commercial office, but it helps to get commercial office rental advice from an expert tenant representative.
There’s intense competition for properties in prime areas, so you’ll need a dedicated team to keep tabs on what’s available, so you can snatch up suitable premises quickly.
When you search real estate listings, there’s no guarantee those properties are still available, so you can end up wasting time researching spaces that are long gone.
When you do find the perfect place for your business, you’ve got your work cut out for you negotiating a good deal. A tenant representative helps cut through all this red tape involved in securing office space for rent.
There are three main leasing options when it comes to renting commercial space. These are:
These are the most common leases offered by landlords. Through these, your rent includes property taxes, utilities, and maintenance.
It’s usually the most cost-effective and convenient type of lease for business owners.
If you sign a net lease, you’re jointly responsible for the above expenses with your landlord. There are three types of net leases:
- Single net leases where you pay the property taxes
- Double net leases where you pay insurance and property taxes
- Triple net leases include pro-rata insurance, taxes, and maintenance for each tenant
Modified Gross Leases
These offer a customized version of the above two leases.
Tenants will pay some expenses, while the landlord takes care of the rest. For instance, you might need to pay for your cleaning, repairs, and utility expenses.
All leases are negotiable when you have the right tenant representative by your side.
Getting a Feel For the Place
Once you’ve found the ideal space with a lease agreement that suits your budget, there’s one last step before you commit. Spend some time inside the building.
Take note of passers-by, traffic flow at different times of day, and street access for your customers. Does it seem like somewhere you can spend eight hours or more a day?
If so, get in touch with the landlord and prepare to make your move.
Make the Most of Your Business
If finding the best commercial office rental space isn’t an option for you right now, there are other ways to boost your business.
Fine-tuning your operations, super-charging your marketing, and implementing sustainable energy sources are some ways to cut expenses or boost profits.
Would you like some pointers on how to make the most of your business right now? Browse our business section for more top tips.
Read Also: What Are GMPs (And Why Are They Important?)