By Ezra Luca
Searching for a new office space or relocating your office space can be a demanding task without proper planning. The first thing to consider is how much the new office space would cost you. Renting or leasing a new office space would require you to determine your priorities based on your office space needs. Average leasing rates can range from $30 to $51 per square foot, depending on current market trends and building classes. Consider essential factors that would help you understand the average cost of office space rentals. Factors responsible for determining the average price of office space are:
Building Class
Comparing office spaces would require differentiating them based on classification. Office space rent based solely on per square foot rates would not give you the exact idea of types of offices. Building classification based on Class A, B, or C would help you determine which one would suit your business and budget.
Base Rent
For leasing their properties, landowners would propose an upfront per square foot rate. While finalizing your office space, keep your planned budget in mind to allow for negotiation. The base rate for leasing office space frequently increases by up to 5% every year. To make a decision, make sure to address these annual changes with your landlord.
Location
The location of the office space property plays a huge role when making a decision. Rental rates would likely cost more when the office space is in desirable locations. Central business areas with proximity to cafes, restaurants, bars, highways, etc., would cost more than regular suburban office space.
Amenities
Onboard services and amenities are critical for a company’s day-to-day operations. Electronics equipment, such as a printer or copier room, and recreational spaces such as a dedicated break room, health centers, cafés, common areas, conference rooms, and so forth, can raise the cost of a building.
Operating Expenses
Aside from the standard per square foot prices your landlord quotes, operating expenses are a portion of the rental cost. The cost of using a workspace is a variable price; nonetheless, history demonstrates that these costs have only increased over time.
As a tenant of office space, you should be aware of these operating expenses increasing every year. Office space in Austin accounts for Triple Net or NNN leases, meaning additional operating expenses such as insurance, taxes, and maintenance. All tenants must pay for their share of operating expenses of office spaces in Austin.
Parking Rates
The tenants often ignore parking rates for the office space while comparing prospective office spaces. Parking areas in Austin office spaces can affect the overall budget for new office spaces.
Term of Lease
A longer rental lease term could leverage negotiating with your landlord for the per square foot rates. Lease term duration with a three or five-year agreement can allow you to pay a bit lesser than the original quote for the office space.
