Choosing the appropriate office is one of the critical steps that any business needs to take. If you are establishing a business, moving from a home office, increasing your current number of employees, or looking for a more businesslike environment, the choice of office will influence the business activity significantly.

Often, businesses begin searching for an office by considering its rental price. Although the rental price is definitely one of the key criteria, it shouldn't be the only one. The office that seems cheap at the beginning can turn out to be expensive after taking into account the expenses on maintenance, electricity and internet bills, furniture, parking, deposit, and other expenditures.

The real task is to choose affordable business office space for rent that offers the optimal combination of the above mentioned criteria.

This guide discusses the criteria that you need to take into account before renting an office and shows how to choose the workspace that offers good value without imposing unnecessary costs on your business budget. 

Understand Your Business Requirements First

It is imperative that you first try and understand the specific requirements of your business before going about looking for office spaces. It is important to note that every business will have its own requirement depending on the number of employees, industry, working nature, client's expectations, and future growth.

First, determine the number of people in your company who currently require space to work. Also consider the growth potential of your business within the next 12-24 months. The office space which is appropriate for your current staff may make you move to another place sooner than you expected.

Consider the type of layout your company needs as well. Some businesses need private cabins while others will function effectively with open plan seats. In case your staff members regularly engage in discussions, then there is a need for a meeting room or a discussion room. Businesses which regularly conduct themselves in meetings with their clients will require a good reception room and meeting room.

Other considerations include the need for parking or transport services, storage facilities, among other things.

Preparing a list of your requirements will save you money which would otherwise be wasted on unnecessary.

Set a Realistic Office Rental Budget

After knowing your needs, make a realistic budget. The office budget cannot be based only on the advertised monthly rent.

Some of the things that make up a comprehensive office budget include:               

•          Monthly rent
• ·        Deposit money
• ·        Maintenance costs
• ·        Electricity
• ·        Internet
• ·        Water
• ·        Air conditioning
• ·        Parking
• ·        Cleaning
• ·        Security
• ·        Furniture
• ·        Interior changes
• ·        Facilities management
• ·        Moving cost

Even an office whose monthly rent is very low may end up being too expensive if you have to spend a lot of money for setup and other monthly expenses.

It would be helpful if you classify your expenditures into one-time expenses and monthly expenses. One time expenses will include deposit, furniture, interior, equipment, and moving costs. Monthly expenses will include rent, utilities, maintenance, internet, cleaning, and other monthly expenses.

This way you will get a better picture of whether a particular office space fits into your budget.

Compute the Total Cost of Occupancy

One of the key things to consider when looking for an inexpensive office is the total cost of occupancy.

The advertised rent amount is just one of the components of the overall expenses. Other expenses, depending on the property, might include the following utilities, internet, maintenance, security, fit out and furnishings, repairs, and other fees.

The above mentioned source clearly states that when computing for the total cost of occupancy, utilities, maintenance and upkeep, fit outs and furnishings, and security deposits should be taken into account.

Find out from the property owner or workspace provider about all the charges you have to pay.

You can avoid unpleasant surprises after occupying your property.

Selecting Suitable Location for the Office

Location is yet another important aspect that affects the cost efficiency of your office. High end locations offer good connectivity and visibility, although at the same time may have expensive rentals.

Choosing the office in the less costly location will save money on rent, but you need to ensure that the location remains convenient for your employees, customers, and business associates.

When choosing a suitable location for your office, consider:

• ·        Public transport
• ·        Highways and major roads
• ·        Availability of parking space
• ·        Nearness of restaurants and cafes
• ·        Nearness of banks and other essential facilities
• ·        Accessibility for the employees
• ·        Accessibility for the clients
• ·        Safety and environment
• ·        Availability of suppliers and partners

You can also consider some up and coming commercial locations and secondary business centers that will offer good infrastructure and amenities as well as varied rental schemes in comparison with the established central business districts.

Not all costly and not all cheap locations are good for your business. The ideal location is the one that matches your business needs and is practical for it.

Explore Different Variants of Offices

Today companies have more options regarding their workplaces apart from long term office leasing.

Traditional Office Space

With traditional offices, you will have your own dedicated space as well as have full control over how it looks like and the environment within.

But then, there is a lot of upfront expenditure involved in furniture, interior design, technological requirements, utilities, and maintenance costs. 

Co-Working Spaces

Co-working spaces are good options for businesses that desire to be flexible.

A co-working space usually comes with desks, internet, meeting rooms, reception spaces, common spaces, and many other amenities.

According to the source material, co-working spaces are often described as plug and play spaces that can give businesses access to such facilities without having to invest a lot of money in the office infrastructure. 

Managed Business Centres

There are managed business centers that can offer private office spaces as well as manage all other operational and administrative duties of your business.

This depends upon the particular service provider. Services can range from maintenance to utilities and facility management.

Such a workplace option can be ideal for businesses that seek professional office spaces without having to manage everything themselves. 

Sharing or Subleasing of Existing Offices

Another option would be to share or sublease an existing office. Companies that have excess capacity can offer some of their office space to other businesses.

It allows having access to already commercial premises without the total rent payment for a big office.

Nevertheless, it is necessary to know all details of the agreement, duties, access, and any restrictions related to it prior to choosing shared workspace. 

Choose the Correct Office Size

The size of an office determines your rental costs. Renting much larger area than required leads to unnecessary expenses, and too small office creates uncomfortable working atmosphere.

Carefully consider what amount of office space you will need for:

• ·        Workplaces for employees
• ·        Cabins
• ·        Conference room
• ·        Reception
• ·        Storage room
• ·        Restroom
• ·        Equipment
• ·        Passage
• ·        Additional employees

In case your company works on a hybrid model, there will be no need for every worker to have a personal desk. This will allow you to rent a smaller office by using shared workplaces.

The goal is to choose the right size of an office in accordance with your business process and not just rent the biggest one possible.

Check What Facilities Are Covered

While two offices might have comparable rates, the difference in the cost will be huge depending on the facilities covered.

Be sure to find out from the provider all that is covered.

Questions to consider include:

• ·        Does it cover high-speed internet?
• ·        Does it include electricity?
• ·        Does it cover air conditioning?
• ·        Does it have cleaning?
• ·        Who takes care of maintenance?
• ·        Does it include security services?
• ·        Does it provide parking space?
• ·        Does it have meeting room facilities?
• ·        Does it have electricity back up?
• ·        Does it have pantry facilities?
• ·        Is there a separate fee for common area charges?

With clear answers to these questions, you will be able to compare different offices.

Find Out Hidden Costs of Offices

Some hidden costs can make even a seemingly affordable office very costly to rent.

These offices might charge separately for electricity, internet, air conditioning, parking, security, cleaning, facility management, or the use of meeting room facilities.

It is suggested by the source material to get the total cost of both monthly and onetime charges before deciding.

Do not shy away from seeking clarity for any charges that are not clear to you. 

Study the Lease Agreement Closely

A reasonable rental price does not necessarily make the lease contract favorable to your business.

Before committing, closely study the agreement and know:

• ·        Lease period
• ·        Security deposit
• ·        Rent increases
• ·        Notice period
• ·        Renewal terms
• ·        Maintenance duties
• ·        Early termination terms
• ·        Business use restrictions
• ·        Subletting terms
• ·        Restoration terms

Pay special attention to the rent escalation clauses in the lease. Even if you currently can afford the rent, escalations in the future may affect the financial calculation.

If you are not clear about any term in the contract, ask the landlord or relevant professional to clarify before signing.

Think About Flexible Lease Terms

Your business needs may change suddenly. One may experience accelerated growth unexpectedly, while another may opt to reduce its office space.

Having flexible workspaces will make adapting easier.

Based on your situation, there are many different alternatives you may want to consider including shorter lease terms, managed office spaces, or workspace operators who provide scalable options.

The source material also mentions negotiation about scalability, shorter lease terms, and expansion to adjacent spaces as needed.

But be aware that flexibility may come at higher monthly rent rates. Compare the total financial commitment first. 

Check the Office before Renting It

Do not take photographs from the Internet only.

Go to the location yourself and check its real condition.

While visiting, check the following:

• ·        Natural light
• ·        Ventilation
• ·        Noise
• ·        Electricity outlets
• ·        Internet connection
• ·        Toilets
• ·        Air conditioning system
• ·        Parking
• ·        Security
• ·        Common areas
• ·        Building conditions
• ·        Accessibility

It may also be helpful to go there during working hours. You will be able to see real traffic, noise, parking problems and activities around the building.

A good looking place from pictures may be a poor experience when visiting it.

Think about Employees’ Convenience

An office is also an environment which is used by your employees to work.

Think about the convenience of this location for your people. Long and tough commuting can be a problem, while good accessibility and proximity to different services and transport can simplify your work.

Think about:

• ·        Commuting time
• ·        Transportation
• ·        Parking
• ·        Food near
• ·        Banks
• ·        Shops
• ·        Overall environment

Try to balance renting costs and convenience. 

Negotiate the Rental Terms

Depending on the property and the situation, some of these terms can be negotiated.

Negotiable terms may include the following:

• ·        Monthly rent
• ·        Security deposit
• ·        Setup period
• ·        Maintenance charges
• ·        Parking fees
• ·        Lease term
• ·        Rent increase
• ·        Internal modifications

As per the source materials, negotiations must be done by comparing realistic market prices and by considering the property’s value rather than just looking at its rental price alone.

Small changes in rental terms have an impact on the total cost of renting over a lease period.

Evaluate Different Properties Before Choosing

Do not decide on an office just because it is cheap.

Select different properties and evaluate them based on certain criteria such as the following:

• ·        Rental price
• ·        Total monthly cost
• ·        Location
• ·        Facilities
• ·        Size of the office
• ·        Accessibility
• ·        Lease terms
• ·        Room for growth

Planning For Future Business Expansion

Your office should be able to assist in your business expansion.

Should your plans include hiring more people, establishing new departments, or needing more space for meetings, think whether the property can allow that to happen.

Moving could be quite costly as there will be moving costs, deposits, costs of buying furniture, installing technology, branding costs, and business disruption cost among others.

In this regard, renting a workplace that has some reasonable room for growth could be much cheaper than moving in the future.

Think About Value Rather Than Low Rent

An office that charges the lowest rent is not necessarily the cheapest office to rent.

For instance, an office that is cheap to rent may require lots of interior work, may not have good connectivity or may have high maintenance costs.

There could be another office that has a relatively higher price for renting but it includes furniture, internet, utilities, maintenance, security, and meeting rooms.

Instead of asking only, “What is the cheapest office?”, consider asking:

“What value am I receiving for the total cost?”

This approach provides a more complete picture of affordability.

Points to Note Prior to Signing for an Office

Ensure that prior to signing on the dotted line you have:

• ·         The total monthly rental costs verified
• ·         Initial installation cost calculated
• ·         Security deposit checked
• ·         Personal tour taken of the office space
• ·         Internet and power supply arrangements confirmed
• ·         Parking spaces verified
• ·         Maintenance duties clarified
• ·         Escalation clauses read
• ·         Notice period confirmed
• ·         Lease agreement reviewed
• ·         Future growth possibilities considered
• ·         Comparison with alternative properties undertaken
• Following the above steps will help you to avoid any unpleasant surprises.

Conclusion

The quest for business office space for rent does not end simply in seeking out the minimum cost per month of renting. There are many things to take into account before making any decision in regard to where to establish a new branch or business.

Firstly, determine what is needed in your business and set a budget. Then choose from among several alternatives of workspace and calculate the total cost of occupancy. Visit each option physically and review the conditions of the lease.

Above all else, concentrate not on just the rent but the total value of the office. The office space should offer a good working environment, appropriate facilities, convenient location, and sufficient flexibility for the development of the business.