Posted by Renting an office space is always an important step for any business. And if your business is a small one, you become more careful since any mistake or fault in the plan can cause serious trouble. Therefore, you need to have a solid plan of how you are going to manage the new office beforehand and if it is profitable for your company or not.
The first thing you will have to do to carry out a plan is to find out how much the office rental will cost. Knowing future expenses is an essential part of every business. That’s why here in this article, we will know how much it costs to rent an office space and many more. Without further ado, let’s dive in.
Equipment and furniture
Your new office space will need some equipment and furniture no matter what business it is. Even if you are running some sort of online business, still your office needs to have at least one computer and an internet connection. So, office equipment is going to be another cost for the new office. The office equipment will cost you from $11,000 to $125,000 depending on the type of the business.
And for the office decoration, obviously, you will need some furniture. Here is a list of common furniture an office needs:
- Chairs and desks
- Paper goods
- Ink, toner, and other printing supplies
- Computers, tablets, and software
- Phones and headsets
- Filing cabinets
- Pens, paperclips, staples, and notebooks
Utilities
Along with the monthly rental fee, you will also have to spend some amount on the monthly utility fee. They are often overlooked by owners when they are renting a space for their office. Every office needs electricity, internet, phone, water, etc. The utility cost depends on how big your office is. Generally, it is $2 for every square foot of office space. So, for a 1500 square feet office, you will have to pay a $3000 utility fee.
How to rent an office space
Now that you understand all of the cost that lies behind renting an office, it is time to rent one. You need to take a careful approach to your office renting. Following the correct steps will save you time, money, and effort. So, let’s see the steps one needs to follow for renting an office space.
The right type of office space
You should determine what kind of office space your business needs. There are two options to choose from- coworking space and traditional office space. Coworking spaces work perfectly for teams or people who are okay sharing their space. While traditional spaces are like typical offices with separate sections for each employee.
How much office space do you need?
It’s important to know how much space is perfect for your office. Renting too large a space may end up costing necessarily, whereas too small will affect the growth and productivity. So, perform a calculation considering the sections your office will have. Then get an estimated size of your future office space.
Location
Office location is another key factor that affects your business. Having an office location where employees and customers can easily reach is always preferable. Keeping the office location closer to the heart of the city is beneficial for most businesses. It is also easy to transport goods from or to your office space if it is in a place where anyone can reach you quickly.
Find office space for renting
After knowing the type of office space and the location you need, it is now easier to look for office spaces. Because you know what you are looking for. Contact a real estate agent or look for local to-let ads to find available office spaces that match the description of what you need. You can also get immense help in finding office space from social media groups and websites for rental advertisements.
Negotiate and sign the lease
After marking a perfect space for your office, now you should contact the landlord and negotiate the rental deal. As it is a commercial lease, you should be careful not to fall into any pitfall. You can consult legal counsel to help you review the lease before you sign it. If everything seems ok, sign the lease and the office space is now yours.
Cost of renting an office spacer
If you are someone unfamiliar with commercial leasing, you may decide quickly that you are saving a lot of money by renting an office space instead of buying. While it is true, there are some hidden cost remains that you are probably missing. We will cover those topics here.
But first of all, let’s talk about the average rental price of office space. If you search for offices for rent in Dhaka, you will see numerous to-let ads offering commercial spaces at different prices. But how do you know which one is asking for unnecessarily expensive rent or not? well. You need to know the average price!
Average monthly rate for office space
The average monthly rent for office space is $2-$23 per square foot. This gives a good idea of how much an X square feet office is going to cost you. If you don’t know how much space your office needs, then simply multiply each employee by 75ft, that’s the minimum amount of space an employee needs. Then calculate the conference room size, waiting for lounge or breaking room size, etc. You got the idea.
Here is a small data chart to show the average price for different office spaces;
Private office space: $150-$600 monthly, for 1-6 employees.
Small office space: $5-0$650 monthly, for 1-4 employees
Coworking hot desks: $50-$500 monthly, for 1-2 people
Meeting rooms: $30-$300 monthly, for 5-30 people.
Final words
It’s not a hard math problem to figure out the cost of office rental. But renting an office involves not only the monthly rental fee but there are also some other costs that you may overlook. In this article, we have covered the most important things about pricing and renting office space. If you have any further questions regarding this topic, do let us know via comments.