How much does it cost to rent office space?
Published At: Thu, 03/25/2021 - 00:59
Renting an office space is one of the most important expenses when running a business. Having a space for any kind of business inspires productivity and morale for each and every worker. Be it an entrepreneur looking to start a business, or a startup team dreaming about a space to gather together and collaborate their ideas, or a big company looking for an office suite.
But how much does it cost to rent office space?
Today we are going to discuss this question, learn how to calculate the cost of renting office space, and understand why the rates vary from each other. Hopefully, by the end of this article, you can generate an optimal cost for an office space you want to rent.
Let’s dive right in!
What is the Optimal Cost for Renting an Office Space?
Actually, the first thing you need to consider when searching for office space is the square feet of space per one employee. This is one of the most important things to contemplate, as you want your employee to feel good first. Mainly, 100-150 square feet per person is the recommended amount of space for a worker to feel comfortable. This will also answer your question on how much space your business needs.
By the facts mentioned above, you can calculate your monthly or annual payment for an office space. For the average Class B building, the rent per square foot per month in California is around $2.80 (or $33.80/per year). Considering how much space you need per employee, you can multiply the number of square feet by the cost per square foot of space. This will be your monthly payment amount. In California, for instance, prices are listed in terms of per month, and they can be around $3000/month. To calculate the annual payment, you should just multiply the monthly amount by 12.
Of course, you should decide all of these depending on the type and size of your business. You can have a startup and need only a small space for your team to start working more productively. Or maybe you already have a big company and are searching for an office suite or a larger and brighter space to improve productivity.
Why Rental Rates Vary a Lot?
Not only the size of the space is considered when calculating the monthly payment, but also the location of the office space. It will obviously cost you more if office space has a prime location with all kinds of accessibility and amenities. The latter is always a plus if you’re able to offer your employee some kind of outdoor or indoor area to hang out and relax.
On the contrary, the rent can cost less if it’s located, for instance, in a business center.
In other words, the class of a building is a factor to consider, as it has the most obvious influence on rental rates. For example, Class A buildings ask higher rates than Class B buildings, as they offer high quality work areas and prime locations, which is a more expensive benefit.
It is also important to remember the factor of the operating expenses with the overall cost of the monthly rent. These can be property taxes, utilities, insurance, common area maintenance, and so on. Depending on where the office space is located and how much the landlord pays to keep it operational, the operating expenses will vary across all the spaces you compare.
Finding and renting an office space that will be just right for your team is not an easy task, especially during the lockdown. It's always best to have someone who can help you online with commercial real estate. Someone who can find the best options for you, manage costs and find possible savings when renting an office space. In this case, My Perfect Workplace is here to guide and help you find the perfect office space you're looking for.
You can find a big number of office spaces, commercial real estate for lease online by visiting our homepage and searching there by city or zip code. There are also a lot of useful tips on how to find office space for rent that can help you make your decision. Let us know if there’s anything we can assist you with!
This brings us to the end of our article on how much does it cost to rent office space. We hope that this guide and our tips will help you find the right space for your business.
