One of the greatest benefits of renting or leasing office space is that you often have the freedom to choose any office that suits your business needs. But, how do you know you’re getting a good deal on the property you’re renting, and not overpaying? At the Johnson Foundation of Florida, we rent out many office spaces to our tenants, so we are experts in this area. As more and more business owners set up offices in the Tampa area, it is helpful to know what they should expect to pay for the lease of their office space. Identifying this information will help you to generate the best return for your business as you balance the needs of your office against your budget.
How Is Rent Price Calculated?
Identifying the expected price for rent is often a matter of determining the overall value of the property itself and then doing a simple mathematical calculation to determine an appropriate rental price. For example, it is generally considered typical to rent out a space at approximately 0.8%-1.1% of the total value of the property. Once you have identified this information, then you can decide what price to pay the rent on when considering that figure.
As an example, if a piece of real estate property is deemed to be worth $200,000, then you would expect to pay between $1,600-$2,200 for the rent. It is a price that will allow you to recoup the cost of the entire property in about 100 months. The same holds true for office space rentals. Landowners want to recover the price of the rental over a period of time, and that period of time usually falls around around the 100-month mark.
How Much Is Office Space to Rent?
There are many factors that go into the exact rental price of office space for certain companies, and it isn’t always as easy as just calculating 1% of the value of the property. That is a good starting point, but other factors need to be looked at as well. For example, it is necessary to consider the following:
- The age of the building.
- The location of the building relative to other amenities and resources.
- The total number of other tenants in the building.
- Your maximum potential budget for renting the property
Prospective renters will need to consider their needs in these areas to determine what their ideal office space will cost. In this way, they can help to ensure that their business enjoys the benefits of their choices without the worry that it is costing too much. It is a delicate balance to try to find the exact right price combination and find the perfect office space to rent. Striking that perfect balance will certainly take some exploring, but it is possible to pull this off with a little patience and dedication to the project.
And of course, the Johnson Foundation of Florida is here to help prospective tenants in their search. With our years of expertise in this area, we can help you to find the perfect space for your needs from the hundreds that we manage in some of Tampa’s most popular areas, and to give you the confidence to know you got a good deal on your office rent.
