It is important to determine the true cost of a space for a couple of reasons. First, you need to be certain that your budget will cover the rent and other expenses for a space. Second, if you are deciding between a few different spaces, knowing the true cost each space can help you better compare those spaces. Here are a few more tips to help you determine what the landlord is really asking you to pay:
3. Consider the layout of the space. It is important to take into account not only the size of the space, but its configuration. Sometimes spaces may have awkward angles, narrow corridors, or interrupted work spaces. This is much less useful than well designed work areas or hallways that can accommodate bookshelves or places to put office equipment. You might actually get a better deal with a space that is $20 per square foot than $18 per square foot if the more expensive space has a layout that allows you to use it more efficiently, resulting in you needing less space.
4. Find out if you will have to pay for extras. If you do not know much about commercial leasing, you may be surprised to find how different it is than residential leasing. In a residential lease, you might pay one lump sum that covers operating expenses, but in a commercial rental situation, you might need to pay for some of those charges separately.
5. See if the landlord wants a percentage of your profits. Especially in a retail space, sometimes landlords demand a share of your profits in addition to rent, or in a mall situation you might be asked to pay what is called “percentage rent.”
Being aware of these rental cost issues can help you be a sharper negotiator.