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Technology Centers Blog

How much does it actually cost to rent a small office?

5/24/2021

6 Comments

 
Rent a small office
For a small business, the cost of an office space may be one of your biggest operating expenses. Offices can come with hefty price tags, so it's important to understand what type of office your business needs and how to compare pricing. While on the hunt, there are many factors to consider when answering the question: How much does it actually cost to rent a small office?

The right type of office for your business

Office spaces for lease come in different building classes, sizes, and structures. A simple, "office for rent" search isn’t likely to be specific enough. The office space that a ten-person manufacturing company needs is not the same space that a two-person accounting firm needs. Consider the following office types:

  • Creative office space: Also known as open-plan office spaces, this office type has an emphasis on collaboration and style. Creative office spaces tend to have industrial accents like high ceilings, open floor plans and wood and concrete accents. In space is good for startups, tech companies and creative agencies. 
 
  • Coworking space: Coworking spaces tend to have more flexible terms such as month-to-month or even daily rentals. These spaces are good for small businesses that need flexible options but desire amenities such as conference rooms, kitchens, game rooms and appliances. These spaces can tend to run a higher price tag because of the short-term commitment and increased amenities.
 
  • Executive Suites: When you walk into an office building and see suites A-E on a single floor, it’s likely you’re looking at executive office suites. These offices are often full service and pre-wired with connections for phone and internet. These offices have all amenities such as a shared break room and conference room(s). Executive suites tend to include shared reception and security.
 
  • Shared office space: A shared arrangement tends to be for businesses that have more space than they need. A company will lease a portion of their space out to another company. This type of office can allow for companies to network like a coworking space but they are likely to have a bit more control over the office space.
 
  • Class A-C office: Building classes are used to signal building amenities, location, rent costs and architecture. There are traditionally four categories: Trophy, Class A, Class B, and Class C. 
 
  • Traditional office space: Most traditional office spaces require at least a one-year lease. These spaces are fit for financial services, hedge funds, and law firms. These offices tend to have quiet, private spaces for detail oriented and confidential work. 
 
  • Flex space: Flex space is a term commonly used to describe flex space such as commercial or industrial buildings that offer multi-purpose space. This is typically a mix of manufacturing, warehouse and office space.

See Also: Coworking vs Private Office Space (which option is best?)


Look closely at pricing structures

It's not likely that all of the space that you find will have the same pricing structure. Upon your search you may see the following labels for pricing:

  • Square footage
  • All inclusive (utilities and furnishings included)
  • Flat rate plus utilities
  • month-to-month 
  • Annual contract
office rental pricing
As the renter, if you want to compare all of your options against each other you're going to have to find a way to convert pricing labels onto the same level.

For example, you may see one office advertising a 400 square foot office at $3 a square foot. At first glance you will assume this office costs $1,200 a month which is a steal. Unfortunately, this pricing fails to include the cost of internet, conference room hours, utilities and janitorial services. Internet alone could cost an additional $150-200 per month and often requires a year-long contract.

Another office you see may be a 300 square foot office for $2,200 all in. Initially it will feel like a no-brainer to pick the office that is $1,000 cheaper, but when you include additional utilities and costs, the $1,200 office could end up costing you more.

To compare the different prices against each other you are going to need to ask the right questions and gather data.

The right questions to ask

Here are the questions you need to ask to make sure you are considering all of the costs:

  1. What is included in the rent price?
  2. Are utilities, internet, parking, janitorial services, phone lines, office supplies, printers and scanners included in the price?
  3. What is not included in the rent price?
  4. What additional charges could I incur? (Such as conference room charges)
  5. Who is financially responsible for maintenance, upgrades and repairs to the space?
  6. Is renter's insurance covered in the cost of the lease? Am I responsible for covering it?
  7. Will rent increase over the term of the lease?
  8. What amenities and services are available and what are the additional costs for them?
  9. Is there parking available? Is there an additional cost for this?
  10. Is all of the space marketed in the office actually usable square footage?
  11. What lease terms are available and are they flexible?
  12. What are the options to renew at the end of the lease?
  13. Can the office be sublet out?
  14. What deposits are required to close on this space?

If you are looking for all-inclusive, private office space. Technology Centers has offices available for rent in Encinitas and Oceanside, California. These offices include office furnishings, utilities, janitorial services, 6 hours of conference room time per month, and WiFi.

CHECK OUT TECH CENTERS

If you're looking to rent office space, click below to browse our private office and coworking spaces available to small businesses in San Diego County.
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ENCINITAS LOCATION
6 Comments
Mia Evans link
6/1/2022 10:30:45 pm

I like that you suggested comparing various executive office spaces for rent, especially regarding their price to find the one you prefer. I think that is an important aspect to ensure that you don't go over your budget. It would definitely make or break your company if you do not handle your finances well.

Reply
Millie Hue link
12/19/2022 10:09:15 pm

Thanks for helping me understand that traditional office spaces would have a one-year lease contract most of the time. I guess a business owner has to consider what office rental property to get based on their budget. It will prevent them from being short and also keep them from being in a place that is not beneficial for them.

Reply
Premisin link
12/27/2022 05:36:37 am


Looking for <a href="https://www.premisin.com" >Flexible Coworking Space On Rent Coworking Office</a> Premisin provide office space, meeting room, virtual office on rent with high speed WIFI, parking area, cafe in prime location in Raipur Book Your Space Now...

Reply
Office Leasing link
3/29/2023 10:26:46 pm

Great tips I got answers for the question in my mind with the FAQ you've given below, thank you for the insight.

Reply
Victoria Addington link
4/30/2023 01:28:33 am

It is good to know that open-plan office spaces allow collaboration and style. My friend is looking for office space for rent. I should advise him to choose an office that is ideal for their daily tasks.

Reply
GFE Escorts Oxnard Shores link
6/9/2025 04:03:52 am

It’s important to carefully consider different office types and their associated costs.

Reply



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