“After you have identified a commercial property to let, you have to assess its true cost. Unlike what most people think, the true cost of a property rental is not always in the monthly rent. To begin, the rent for commercial property may be calculated in unconventional ways and is affected by many factors. Moreover, there are other expenses, which in the real sense are not rent, but are paid on a regular basis like rent. There is also a positive side though. For example, you can get free rent and Internet for the first month or two.
Below are some tips that will help you determine the true cost of the property:
1. Size
Commercial property to let is usually advertised in square feet. For example, a letting agency can advertise “3,000 square feet in a new buildingâ€. This does not necessarily mean that you have to occupy the whole 3,000 square feet. Landlords who are targeting established businesses will usually have a minimum square feet area than must be occupied. The rent for commercial office space is calculated based on the price per square foot. Find out how the landlord has calculated the size of the space you are letting. Some may start measuring from outside the wall and as a result, you will end up paying for space that you do not use.
2. Common areas
In some buildings, the tenants share some common areas. For example, they may be sharing the parking lot, lobbies, elevator shafts, bathrooms and hallways. When all these areas are added up together, they form a considerably large chunk of space. Do not assume that you will be using the facilities for free. The charges for using the areas may be incorporated in your rent. If you will not be using some of these areas, find out whether the landlord can consider deducting their costs from your rent.
3. Layout
The shape or layout of the office space you get will determine whether you are getting your money’s worth. When letting commercial property, it is not always about going for the cheapest space. For example, you will be better of paying £20 per square foot for a space that is well laid out than £18 for an irregular space that has awkward angles. You will be able to efficiently use the former space than the cheaper latter.
4. Extras
In commercial space letting, rent does not necessarily mean the fixed monthly payment like in a house or apartment. Apart from the rent, you may have to pay real estate taxes, maintenance fees, building insurance and other fees. All these costs are considered by the landlord when setting the rent of the space. In some situations, you may be required to pay some or all of these additional charges separately from your rent.
The cost of commercial property rent is calculated slightly differently from that of houses or apartments. Knowing some of the factors that determine the cost of commercial property to let will enable you know how much you can save by forfeiting them.”