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What Is Needed For Your Next Office Space?
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What Is Needed For Your Next Office Space?

There are many things to consider when leasing commercial space for your business. The type of business you have will help shape your decision. I will outline the different product types which are office, industrial, and retail and what each entails in greater detail. Today’s post will involve office properties and the different types and what questions to ask yourself when searching for space.   

The same rule that applies in commercial real estate also is true with residential real estate and that is, location is vital.  The location will determine the price you can afford and the type of property available.  Generally, the closer to the city the less space will be available.  The closer in you are, the more the price will be per square foot. The CBD or Central Business District will have the most expensive space and the quality of the building will for the most part be a Class A property. This means a first class property with plenty of amenities such as security, garage parking, café, gym, etc. will be onsite. These buildings are also the best built properties in the best locations that have excellent property management and quality tenants.  If having a strong attractive presence for your clients is necessary, then this may be the type of property you want. However, be prepared to pay a premium for space in these properties. Also, you will be required to pay expenses on top of your monthly rental amount. The expenses include taxes, insurance, and common area maintenance.  This is known as a triple net lease or NNN.   

Class B properties can be a really good value. These may have been Class A buildings years ago and it more than likely has strong property management along with a good tenant mix. Some of these properties have gross leases in place, which means the expenses are included in the rental price. They are generally much cheaper than their Class A counterparts. Some really good opportunities can be found with Class B buildings.   

Class C properties are usually older and in need of renovation. These property types are not in as desirable areas as the other two property types mentioned. They will also be much cheaper and will have gross leases in place.   

There will be several questions you will need to ask regarding your business, such as: 

How many employees do you have? 

How much can you afford per month for your space? Next to payroll, leasing costs will be your biggest expense each month. 

Will customers or clients be visiting frequently? 

Will you need several individual offices or a large open area for a call center or cubicles? 

Parking can be a big issue if your company has a large amount of employees.  Different properties have different parking ratios but 3/1000 is a good target. That is, 3 employees per 1,000sf of office space. Also, if do you have a call center the employees may need availability to public transportation. So being on the bus line may be necessary.  

How much square feet will be needed? The general rule of thumb is one person per 250sf.  This is a little generous and can probably be tailored down to one per 175sf. It all depends on the type of business you have. 

As you can see, there are many things to consider when searching for office space for your company. With a little research and answers to these initial questions you will save a huge amount of time and resources and be in much better shape than just blindly looking for space for your company.   

In the next posting I will discuss what is needed in acquiring industrial space.  

10 Comments to What Is Needed For Your Next Office Space?:

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Sal Rastegar on Wednesday, May 09, 2012 8:37 AM
Are rents going up for commercial space around Jollyville area? I'm interested in renting for a 10 crew company.
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Mitch on Wednesday, May 09, 2012 10:35 AM
Sal, Thank you for your question. Rents are slowly going up, particularly in high demand areas like Jollyville/Arboretum. But there are deals to be made. I can show you how to save a lot of money and get a great deal.

call center solutions on Friday, September 21, 2012 12:50 AM
Must agree with you! I am looking for a wonderful space for my new office. And I wanted to know that communication is the key to get clients. So, the call center is very important and necessary in the modern age.
Reply to comment
Mitch on Friday, September 21, 2012 1:08 AM
Thanks for your post. Yes, call centers have very particular needs. We can speak in more detail tomorrow about your needs, timeframe, etc.

Cheap Virtual Office london on Thursday, April 18, 2013 1:12 AM
Hi! your view point is extremely convincing on the related issue of office space. I like the accurate facts and details provided in the post. Very well written.
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Virtual Office London on Thursday, April 18, 2013 10:25 PM
Wow! I am really impressed by the way you detailed out everything regarding the next office space. It is really going to help me a lot. Thanks for sharing your thoughts so clearly.
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Office space for rent on Thursday, March 13, 2014 6:20 AM
I found this post to be enlightening and helpful. I found the rule of thumb (toward the bottom) to be very interesting.
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