How to Budget for a New Office Space

A good office space can benefit a company in ways one wouldn’t usually expect. With the right office, you can make a statement and show what kind of company is being run. Don’t think of the office space as just an ordinary place where employees can come to every weekday to work. An office space is a home. A home where productivity is sought and a company’s operations are mostly held. Knowing the importance of an office space, it must be kept in mind to invest well into the office and go beyond ordinary. However, that doesn’t mean you should be spending lavishly on the office, it is important to keep a budget in mind. This budget shouldn’t be too high, nor too low.

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office cubicles

Now when you are budgeting for a new office space, it is important to consider the options you have when renting a space for your company. Take note, there are different types of leases. A common option among companies is to rent the office with another company where both are shouldering the direct lease and splitting the cost. When two companies decide to share an office space where both pay an equal amount, it is called a shared office space. Sharing an office space is actually a great way for your company to be able to save on costs since you will only be paying half wherein the other half of the rent is shouldered by the other company.

Another thing you should look further into are the leases and the rate of the rent that comes with them. It is important to make sure that the lease you are signing is secure and safe for your company. This might not really be said for companies who are subleasing a space from another company.

Now when you sublease, you are just renting a space of the office from the company who is shouldering the direct lease. This isn’t like a shared office space where both split the cost of rent under the direct lease. With a sublease, another company is signing the direct lease and if there is extra space, they can sublease it to another company. The reason this isn’t fully secure is that if the company signing the direct lease is unable to pay rent, you will be forced to move out. This isn’t much of a problem for companies who are more capable and can decide to take over the direct lease. But I take that those companies subleasing are trying to save on costs and won’t be able to take over the lease.

It is also important to think about the rate of rent when you are trying to budget for a new office space. How much do landlords rent out their spaces for offices these days? Usually you will find a space is rented based on its area or per square meter. It is important to survey different spaces and calculate how much the rent is per square meter as you may find big spaces that are cheap and small spaces that may come at a cost.