Cost-Effective Office Space Leasing: How to Maximize Your Budget

Making Smart Decisions with Office Space Leasing

Choosing the right office space can be tricky. Companies need to consider location, layout, and most importantly budget. 

It’s important to assess the employee strength and the approximate square footage required for leasing an office space. 

Suppose, a company consists of 50 workers and each worker requires a desk of 50 square feet, (50 workers x 50 square feet = Total 2500 square feet for an office space). Based on this a budget can be evaluated. 

Such an estimation helps avoid general mistakes and pick a sensible office space.  

The points below encapsulate some of the ways Office leasing companies employ corporate office leasing strategies that ultimately provide clients with smart office leasing solutions. 

Why Leasing Office Space Can Be More Cost-Effective Than Owning

Buying a property may seem like a one-time payment at first glance but there are many hidden costs involved. Property taxes, insurance, utilities, renovations, etc. are necessary for keeping a property intact. 

Office leasing companies offer short-term office leases as an alternative for purchasing. In this, a company needs to only pay for the space and utilities they use for a specific period. 

The workspaces are scalable office spaces that can be moved or adjusted based on the suitability of a business. The lease commitments can be segregated into a day, a week, a month, or even a year, in the form of passes. 

1.Eliminating property maintenance costs

Small businesses prefer flexibility, coworking spaces or other cost-effective office space leases. They are the best options available for reducing overhead costs. 

While leasing, the onus of maintaining the property falls on the landlord. Hence, expenses such as property taxes, insurance will not be borne by the lessees. 

Once the lease term ends, companies can simply move out and look for another office space. 

2. Lower upfront investment

A large sum of money is required to buy a property, it may take years to accumulate this amount. This might affect the budget set aside for operating the business.

In comparison, affordable office space leasing options such as shared workspaces require lower retainer fees. After the retainer fees or deposit, companies need to pay the monthly fees for using the office space. 

These costs are stable and protect a significant amount of the company funds for growth and expansion. 

How to Find Affordable Office Space Leasing Companies

It's suggested that the budget for an office space should be between 5% to 15% of the overall operating budget of a company.

Having such a budget narrows down the options of office space leasing companies, leaving companies to decide the ones that serve the best interest. 

2. Key considerations for pricing

Office space leasing companies provide various ranges in workspace that include both affordable and premium options. The price range for smaller office spaces and large commercial towers are also considered based on the size of a company. 

Companies need to choose options that ensure that they have the best office setup for working and a price that matches their finances. 

2. How to compare leasing options

Each company has a unique requirement, some prefer a stylish yet small workspace, while others prefer large workstations with ample space for equipment. Some focus on branding while others prefer office space closer to amenities. 

Some companies may prefer a combination of all these conditions combined. It's best to weigh the pros and cons by analysing the lease terms, calculate the costs involved, consider flexibility of the company, and much more.

Office space leasing companies hire experts for such occasions to lighten the load on companies and come up with the perfect leasing option. 

Negotiating Better Lease Terms for Cost Savings

It's crucial to conduct self research of the ideal office locations and spaces. This way companies will gain first hand knowledge regarding the current market rates. 

Having market knowledge will give companies an upper hand and help explore alternative options that meet their requirements. 

1. Understanding hidden costs and fees

Office space lease agreements generally break down the charges that are included in office rent. They can be Common Area Maintenance charges, Parking charges, yearly escalations, etc. 

Companies should include these charges and escalations while calculating their budget to gain a broader understanding. This way negotiations can be arranged with the landlord and some of the charges reduced or eliminated. 

2. How to leverage your business size and lease duration for better deals

A small business or a large size corporation can use their capacity as an advantage to negotiate better lease terms. 

Larger corporations can use their branding and goodwill and ask for concessions such as subleasing, or asking for a longer lease period. While small businesses can request a reduction in notice period or an option to extend current lease in case of expansion. 

Leasing Models That Can Save You Money

Leasing an office is a big step for a company due to the high costs involved. Depending on  business cash flow, companies can either choose a flexible lease or traditional lease.

Many small businesses are going for cost-effective office space leases that would leave more room for business financing. 

1. Short-term leases and pay-per-use models

Managed office spaces have a subscription based or a pay-per-use model. Companies need to choose the services such as IT setup, utilities, maintenance and pay for these including the seats occupied. 

It’s also an ideal option for smaller businesses who merely want a virtual office address that handles mails and branding. Teams that want meeting rooms on demand can pay for a day-pass and use that room or seats for a specific time. 

2. Shared office space and coworking options

Shared offices and Coworking spaces have an open office layout with pockets of areas assigned for private workspaces. Companies prefer such shared workspaces to interact with different professionals and entrepreneurs. These spaces are also seen as a business opportunity and help create partnerships and business deals. 

Teams can use these spaces for a fixed monthly fee and also take a membership for their company. Seating options vary from dedicated desks to private cabins. Prices depend on location, market demands, availability, etc. 

Technology and Smart Design to Maximize Your Office Space

Companies prefer to streamline building operations and reduce the manual workload on their employees so they can focus more on core work. Use of technology can help an office space become more efficient.

Artificial Intelligence-powered buildings have become a part of smart building design and control. The integration of biometric sensors and ID card scanners are present in most corporations but these AI assistants take care of security, adjust cooling, lighting, heating, etc. as well. 

1. Space optimization tools

Space usage has been integrated into software platforms, for better monitoring. Hot desking and assigned seating through mobile apps have made it easier for workers to check available seats.  Instead of physically scanning an office space, a software will look out for used and unused spaces through sensors and check the area for reserved seats. This way underused office space can be modified into an area that better serves a business.  

2. Sustainability practices and cost reductions

Many companies prefer sustainable office spaces to maintain a higher standard for business operations and also as part of their ESG policies. Hence, they seek out green certified buildings for their offices. 

In India, Indian Green Building Council ensures that buildings follow the code of conduct by reducing wastage and increasing efficiency. 

Sustainable office spaces are also a sensible option for maintaining a budget. Many companies reuse old furniture and equipment by upcycling them. In fact, Grand view research market insights predict that the use of eco-friendly furniture is expected to increase to more than $80 billion by 2030. 

Conclusion: How to Get the Best Value from Office Space Leasing

Office space leasing companies are always on toes to cover the constant changes happening in the commercial real estate leasing market. They leave no stone unturned to provide the best cost-effective office space leases for companies. 

Companies have become much more knowledgeable and aware of the best strategies that will propel their business towards great heights. This means also being hyper aware of the costs incurred for office space lease agreements. 

The best way to negotiate an optimum lease deal that benefits these companies is to put forth options that align with their office space requirements, finances, and business forecast. 

Get the best value office space for your company through Citadel Propcon. For a consultation with one of our professionals visit www.citadelnetinc.com.