Monday, January 26, 2009

Office Rental Hidden Costs

Dear Kuester –

I am thinking of renting an office space and would like your advice on what issues to be aware of beyond price per square foot and additional hidden fees.

Kenny T.

Dear Kenny –

You are wise to be cautious when renting an office. Be sure that, in your calculations, you have figured in the “hidden costs” you mention such as service charges, heating, air conditioning, lighting, furniture, insurance, and so forth. Once you’ve add in all incremental charges, does it still fit comfortably into your budget?

Another issue to consider is whether the space will serve you over the long term. It may look perfect now, but is it able to accommodate your plans for growth? If you add employees a year or two from now, will it still meet your needs or will a move be required?

Do the premises match your business’ “brand?” Is the building and its occupants consistent with the image you’d like your business to portray? Check what type of neighbors you’ll have and whether their businesses may interfere with “quiet enjoyment” of your space.

Talk to neighboring tenants. Is the building well-maintained? How is it managed, and by whom? Do the managing agents or owners respond quickly if there’s a problem? Are there ongoing issues that haven’t been addressed? What sort of regulations (such as hours of service for a freight elevator) might pose a problem for your business?

Balance location convenience against cost. Many business owners select offices that are remotely located to cut on costs, but discover it’s a false savings. It may be harder to get and keep employees and clients. It can add additional transportation costs for banking, mailing and picking up supplies. Are the amenities nearby adequate to serve your business’ needs (restaurants to which you can take clients, hotels in which they can stay).

Depending on your business, there are many considerations to take into account when renting or leasing office space.

We have been involved in renting, leasing and selling real estate for over 30 years and we’d be happy to offer our expertise to make sure your rental office meets your current and future needs. Please give us a call at 803.802.0004 for an appointment.

Best regards,
Property Manager
Kuester Property Management

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