Monthly Expenses for a Triple-Net Office Space Lease in Overland Park

If you’re looking to lease a commercial office space, one of the first things you have to do is plan your budget. In order to do this, it is helpful to know what your monthly expenses will be in an office space. Having an idea of the different fees and costs associated with a space can help you narrow down your options as you search. Here are a few things to consider, as outlined in the article “How to Find & Lease Retail Space.”

One aspect of your monthly costs is the different factors that contribute to your rental rate:

  • Location. Location has a major impact on the monthly rental rate of the space. One aspect of location is how close you are to central hubs of activity. An area that has higher customer traffic means higher rent, both in big cities or in smaller towns. Another aspect of location is the surrounding businesses. If there is a large anchor tenant on your property, you might have to pay more. Also, if you have a prime space near the parking area or facing a main street, You will probably have to pay more then if your space is less visible.
  • Quality of the Space. Another obvious factor is the quality of the space. A place that is move-in ready will be more expensive than a space that you will need to renovate or remodel, but be sure to factor in the cost of improvements and what the landlord will contribute to these costs.
  • Vacancies. A property that has multiple vacancies will probably offer cheaper rates then one with less available space. However, they’re in mind that if it’s a new property it might still be expensive even if it currently has multiple vacancies.
  • Length of Lease Term. If you’re looking for a longer lease, you are more likely to get a better deal on your rental rate. A long lease means more bargaining power, which means that you can try to ask for a reduction of your lease payment or or other costs. On the other hand, a very short lease, such as one year term, means that you have almost no negotiating leverage.

Factors that influence rent are not the only things that you need to consider when planning your monthly budget. Often there are a lot of other costs associated with your lease. These costs will depend on the type of lease that you have. Here are a few monthly expenses you should expect if you have a triple net lease, one common type of lease:

  • Utilities. As with any property, don’t forget to take into consideration utilities, including water, electricity, heat, sewage services, internet services, and any others. You can check with your landlord to see if they have estimates for these monthly fees, but if not you can always call the providers of these services to get a quote.
  • Maintenance. This is something that you should definitely discuss with your landlord upfront to make sure you know who is responsible for what elements of maintenance. You will most likely want to factor in heating and cooling systems repairs, lawn care services, snow removal and any other common issues you expect to encounter. You will also want to consider whether you have common area maintenance costs–fees to take care of spaces that you share with other tenants.
  • Taxes. In a triple net lease, you will be responsible for paying a portion of the property taxes. You should be about to get this information in advance either in the listing or from your broker.
  • Insurance. You will also have to pay a portion of the property insurance, and you can also get a quote for this from either the landlord, your broker, or a local insurance company.

Aside from the factors that affect your rent and your monthly costs, there is one more expense to factor into your budget as you look for space:

  • Broker’s Fee. Don’t forget to plan for a broker’s fee if you plan to work with the broker. There are a few different ways that brokers calculate their rates. Often they charge between 7 and 10% of the total cost of the lease. Another system would be charging you per square foot, which might also depend on the length of the lease term.

If you’re starting the process of looking for a commercial office space to lease, it is important to try to plan your budget before you even start looking. If you have a good idea of your monthly costs as well as what a broker’s fee will be, you can start to look at properties that are in your price range, rather than wasting your time and energy looking into spaces that you will not be able to afford.

If you would like to learn more about office lease rates in Kansas City, give us a call at 913-685-4100. We can also tell you more about our affordable office space in Kansas City, and you can even set up a tour!

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