Guidelines for Assessing Your Commercial Rental Expenses
The traditional business space has been overtaken by technology. It is thus now possible to handle your business from virtually anywhere. With this move, some business owners see no need for a physical office address since they can handle almost everything online. You nonetheless need an office space where you can meet clients and accommodate your employees. Thankfully there is a lot of competition among commercial landlords, and you can thus get a good office at an amazingly low price.
Most business owners erroneously only consider the price offered in the office space for lease in Ortigas. They will thus pick an office that falls within or below their budget limits. Your budget is, of course, vital and will determine the space you should get, but it should not be interpreted in the exclusion of other factors. When considering the rental price of your commercial venture, this should go far beyond the rental price a landlord is offering. Here are guidelines for evaluating your business’ rental expenses.
Consider How Your Landlord Will Measure the Square Feet
The rent of commercial space is generally based on its square footage instead of on a descriptive basis like a rental property. It might seem strange when a landlord rents out 2000 square feet of space in a commercial building, but you will not necessarily only get this 2000 square feet. You should know the point from where a landlord is starting his/her measurement of the square footage you are renting. Most will measure the footage from the center of a room or the outer side of your walls. Knowing how the square footage is determined will reduce the risk of you ending up with useless space.
Know If You Are Paying for Common Areas
In most commercial spaces, there will be structures you share with other tenants, including parking space, elevators, and bathrooms. Do not assume that the use of these properties comes free with the office space. Ask whether you will be paying for their use and maintenance since the expense might significantly increase your overall rent.
Consider the Office’s Layout
An office’s layout will also determine its usability. You might, for instance, not get your money’s worth if you have a lot of interrupted workspaces, awkward angles, and narrow passageways and common areas in your space. You should thus assess the space you are renting vis-à-vis your desired office layout to guarantee it will accommodate your furniture and employees.
Know If the Landlord Will Take a Percentage of Your Earnings
In most retail spaces, the landlord will often have a share of the tenant’s profits in addition to the rent. This is included in your lease as percentage rent. You should be well informed of whether or not the landlord will want a share of your revenue even if you are renting office rather than retail space.
Renting commercial space is not a failsafe venture. Several elements in your lease can cripple your business if mishandled or assumed. Other than getting the best developer to guarantee an exquisite office space, follow the above guidelines to ensure your rental office does not cripple your business.