A lot of people have called in to the LCI Realty office to ask what seems like a very simple question that actually has a really complex answer— how much does it cost to rent commercial space? The answer to that question that we always give is it depends. Starting a new business, or choosing to move your home based business into a commercial space, or even moving your small business into a bigger space can be both exciting and stressful. Any good steward of a business is going to want to know how much it will cost for them to get a quality space and the team at LCI Realty gets that. However, there are just so many factors that need to be considered when figuring out the cost to rent commercial space, including lease type, length, square footage and more. In almost every case, it’s easier just to get in contact with a tenant representative team, but there are some basic considerations you can make so you have an idea of the cost to rent commercial space when you do talk to a representative.
The Basic Math
The basic calculation method for finding the cost to rent commercial space is fairly straightforward as long as you are armed with the right knowledge. Let’s say that rent is set at $XX.XX per square foot of the space you’re hoping to lease. To determine a basic rental price for the year, you have to multiply the square footage against the cost per square foot to determine an annual estimate
XX square feet × $XX per square foot = Annual Cost
To determine what that will cost you per month, divide the number by 12:
Annual Cost ÷ 12 = Monthly Cost
That should give you a basic idea of what you could expect as a cost to rent commercial space. However, that’s not all that you are going to have to pay and you should be aware of that before you continue.
So the basic math is fairly easy to understand, but there are a number of things that affect your total costs that are both up front in the lease and some remain hidden in the language of the lease. Here are some things to consider that might affect your cost:
- Lease Type – Not every lease type is made equal and each type will affect the cost to rent commercial space, so you need to know what lease type you would be getting into.
- Lease Length – The length of your lease will also affect your estimated cost to rent commercial space because if you have a longer lease and bring in a lot of business, you might get to pay less, but not in every case.
- Tenant Improvement Allowances – These allowances are amounts in dollars negotiated in the lease that the landlord is willing to offer for the tenant to make improvements and it can drastically affect the overall cost to rent commercial space.
These and a number of other considerations could drastically affect your overall leasing costs, so if you want a full scope, your best choice would be to hire a tenant representative.
Working With A Tenant Representative
A Tenant Representative will make sure that you get the best space for your dollar and the most optimal lease for your business. The LCI Realty team has helped all kinds of different businesses to find the right space, determine the factors that will affect their cost to rent commercial space, and helped the finalization process to go smoothly until the landlord hands over the keys. Are you ready to find your new space? Contact the LCI Realty team now at 480-531-8919.