Small Tenant Tips
How Much Space Does Your Company Need?
It is tempting to “think big” when you are renting your first office space, but be careful in realizing how much space you will actually need. Many say there should be around 200 square feet per employee, but if needed, you can make do with less. If there are only 1-3 employees, you have the option of leasing a fully equipped office suite. The office suite is a great situation for a small company due to the ease of “Plug and Play” and the convenience of existing office supplies. Another option is to sublet a room or two from an existing business. In this situation, you can share internet, phone and utility costs.
How Much Are You Willing to Spend on Rent?
All of the buildings will list their price per square foot in monthly or yearly terms. For example, for monthly, it can be $2.73/square foot which would come out to $32.76/square foot per year. Research each market and find the current asking rates for class A, B and C buildings in order to evaluate how much you will have to spend on rent, what type of class building you want to be in and which market would best suit your financial needs.
What About Tenant Improvements (TI’s)?
Some office spaces may be suited perfectly for your business and you can lease it on an “As is” basis, while others may need some improvements such as adding/taking down a wall or even adding a private office. Don’t be intimidated by spaces that need improvements because they can be taken care of by the landlord before you move. Although if you are a small tenant and have a short lease term, the landlord will most likely not see the financial advantage of improving the space. Offering new paint and carpet is common but not mandatory.
What is the Cost For These Tenant Improvements?
The landlord may cover the cost, but only if he/she sees the financial advantage in doing so. If you are a small tenant paying a low rent, most likely the landlord will not do any improvements to the space. In that case the tenant may choose to pay for improvements or the Landlord may offer an allowance for these improvements.
