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Every new business has to come to a point when they need to expand. When your sales become consistent and you gain a lot of new customers, you’ll need to hire more workers. And to accommodate your growing team, you also need to upgrade your office space.
If you’re on a budget, finding office space can be a daunting task. You need to know the local real estate market, the regulations that come with leasing a property, and an eye for a good deal. Luckily, there are some ways to help you find the perfect office space for your business without breaking the bank.
In this article, you’ll learn all you need to know when searching for office space. This guide will walk you through the process and find the perfect office space for your business at the right price.
- Determine Your Budget
Before you start looking for an office space for rent, you need to know how much your company can afford. Even if you’re receiving a lot of revenue, that doesn’t mean you can spend blindly on things like these.
Office space is important, but that’s not the only thing you’re paying for when you’re running a business. Remember that you still have to pay your employees, fund your operations, and pay utilities and other fees that come with renting.
Opting for an office space for rent is cheaper than owning one. You don’t have to think about other expenses like taxes. The only thing you’ll be paying for will be the rent and any expenses to upgrade your space. But it can be expensive if you don’t set a budget for it.
Determining your budget will help you narrow down your options. This way, you can focus on properties that fall within your price range. You can start by looking at your cash flow and determining how much room you have for an office lease. It also helps to know the prices of office spaces in the market.
There is a lot of office space available for you. You can find big and small office spaces, as well as traditional and flexible office spaces. And the price for these spaces depends on where you are.
A typical Dallas office space for rent is approximately $49 per square foot. Office spaces in other states can be less expensive or more expensive than this.
- Identify Additional Rent Expenses
You should also consider the other expenses involved with starting a business. This includes marketing costs, equipment, and furniture.
Office space rent is just one of many expenses you will face when starting a business. You should factor in other costs when determining how much you can afford for an office lease. With this, you’ll know if you should rent the space or property. Outlining all expenses will also give you a better idea of how much you’ll have left to run your business.
Renting office spaces doesn’t require you to pay taxes. In some cases, the property manager or owner needs you to pay for utilities. This includes energy bills and cleaning costs. You should also factor in any maintenance fees, such as the cost to replace broken appliances.
Keep these in mind and add these things to your budget. This will give you a better idea of how much money you should be able to spend on office space.
- List Down Your Office Space Requirements
Another thing you need to do is to have a general idea of what you’re looking for. By doing so, you can find the perfect property without spending all day looking through listings.
To start, consider your business type and size. You can find out which type of office space you need, as well as how much you can afford. For example, if you are a law firm, you will need a large office for your attorneys and their staff.
If you’re a solo entrepreneur, you only need a small office to run your business. Once you know what you’re looking for, you can begin searching for office space.
- Consider Other Types of Office Spaces
Traditional office spaces are the type of office that most people have in mind. But these office spaces aren’t the only option you have. There are other types of office spaces that can meet your business requirements for an affordable price. And each of these types has different advantages.
- Creative Office Space
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This type of office space promotes teamwork, both functionally and symbolically. With few walls to separate workspaces, they offer more communication cooperation among people within your company.
You can save a great deal with creative office spaces. For example, you don’t need to install different ACs in each room. Depending on the size of the space, you can have two or three air conditioners running to cool the whole place.
- Coworking Office Space
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Coworking office spaces also make use of an open-space layout. The difference is that you’ll be renting a specific number of spaces that you need. This makes it an affordable choice if you only have a few members who need to work in an office.
Most office spaces of this type let you rent the space daily, weekly, or monthly, which allows for flexibility.
- Shared Office Space
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Some companies who own an office don’t use all the space it provides. So to maximize their use of the space, they rent it out to others. This gives some of the social benefits of coworking while keeping some degree of control. As you can imagine, rent for this type of office space costs less than renting a whole office.
- Executive Suites
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Executive suites are fully serviced workplaces inside a whole level of space leased to another company. They are often available for sublet on flexible terms. Most office suites of this type offer month-to-month leases or durations of 3, 6, 9, and 12 months.
An executive suite has access to shared conference and break rooms. Both companies also have the same reception area with a receptionist. This can be expensive since it is completely furnished and pre-wired for phone and internet services.
- Compare Available Properties
When you compare commercial properties for rent, you will see that they are not all the same. Each office space has differences that can make it difficult to choose between them. Not only do they differ in layouts and property features but also in how much they cost.
How to Spot a Good Deal?
A good deal doesn’t just mean that the property is affordable. It also means that the terms of the lease are favorable to you.
- Age of the property
New buildings are often more expensive than older ones. Old buildings have been tested over time and have a proven track record.
- Location of the property
Properties that are in a prime location, such as a downtown area, are often more expensive than those in an out-of-the-way area. If you don’t need to meet with clients, you can rent office space in a not-so-busy area. But that doesn’t mean busy areas don’t have cheap office spaces for rent.
For example, one of the top markets for commercial properties is Dallas. Office spaces for rent in this area can be expensive because of that. But you can still find affordable workspaces in the area with the help of a real estate agent.
- Size of the space you’re renting
How big the office space you’re planning on renting also determines how much it will be. An average space can cost $8 to $23 per square foot. So that means for a 250-square-foot office space, you can expect to pay as little as $2,000 and as much as $5,750 per month.
- Cost of renovations
Renovations of the office space can be as little as wall paints to as big as tearing down partitions and installing new systems. This will give you an idea of how much money you will need to invest in the building.
- Work With a Real Estate Agent
Finding office space is a process that will likely take a couple of weeks. And throughout these days, you’ll have to visit a few dozen prospective properties. That’s why you should consider working with a real estate broker that has your best interests at heart.
A good agent will help you determine your budget and find you the perfect office space for your business. Working with a real estate agent can save you a lot of time and money since they can also negotiate the price of your terms.
These agents have access to a wide range of listings. They can show you office spaces that are outside of your budget range. This will give you an idea of what other companies in your area are paying for office space. With this information, you can then work with an agent to try and negotiate a better deal.
- Negotiate the Lease Terms
One of the most important aspects of finding office space on a budget is negotiating the lease terms. The lease agreement will determine how much you pay and when you pay it.
Before signing the lease, you should thoroughly understand the lease terms. This way, you won’t get stuck paying more than you can afford. Once you understand the terms, you can begin negotiating.
You need to find a balance between paying too much and not having enough money to run your business. If you overpay for your lease, you won’t have enough money to cover other expenses, which hurts your business.
You should negotiate as many terms as you can, such as the length of the lease. Some companies work with real estate agents to help them with this.
Finding office space on a budget will require some legwork. You will need to spend some time searching for properties and negotiating the lease terms. This process can be difficult and stressful, especially for business owners running a company.
Following the list of tips above will make it easier to find the perfect office space for you. You can also hire a professional broker to get the best deals in the market. When it comes to finding office space, you have to walk away from a deal that doesn’t make sense. You don’t want to sign a lease that will put your business in financial peril.