There are 2 main types of offices most businesses are looking for:
In 2020, this option is slowly fading away. The only reason a new small business should have a traditional office space is if the business offers services or specialized processes that will require a stationary space. While a traditional office might provide cost savings, small businesses (especially start-ups) need more flexible solutions.
In an executive suite, a landlord provides you and your business a private mailbox, receptionists, shared furniture equipment and office supplies, video conferencing equipment, conference rooms, and other support services. Your business will pay very little for maintenance, telephone/internet and office supplies.
There are 3 main terms you need to know to understand how small office rent is calculated: USF, CAF, and RSF.
USABLE SQUARE FOOTAGE
The calculated square footage of your office space is known as Usable Square Footage or (USF) which includes the actual office space, desk space, stations and any other area you’ll be working in.
COMMON AREA FACTOR
The Common Area Factor or (CAF) is a percentage of shared space within a multi-tenant building you will need to pay for in addition to your usable square footage cost. Common areas shared among building tenants include restrooms, lobbies, mechanical, storage rooms, break rooms and hallways, for example.
RENTABLE SQUARE FOOTAGE
Small office rent is often calculated yearly and then divided into monthly increments. The cost for Rentable Square Footage (RSF) is calculated, and this total is the amount of rent paid by you. In a nutshell, RSF is the total of the usable square footage and the portion of common areas you are responsible for. Exceptions to this rule are executive suites which are not necessarily based on square footage but are usually priced on a per month basis.
Here are a few of the criteria that you should consider when you are trying to size the office of your dream company.
DOES YOUR OFFICE SERVE AS A MEETING PLACE, OR IS IT JUST A PLACE TO WORK?
Depending on the nature of your business and the clients that you have, you may want your office to be a hosting venue as well as a place of productive workflow. This fundamental difference in how you view your small office will dictate the spacing arrangements that incorporate into your layout. Make sure you have a clear understanding of what the office will be to you and to your client base before you make any final decisions.
CAN YOU SECURE THE ENTIRETY OF THE OFFICE SPACE?
The first step here is to take a full assessment of the security measures that you have. You must then take a full assessment of the security measures of the building that you will be moving into. This is why a tour as well as a proper demonstration of the security techniques that the building has available is absolutely necessary for each and every building that you are considering.
SOME THINGS TO CONSIDER
Does the type of service or product that you offer require that you remain in close proximity to your target audience, or can it delivered from any geographical location? It is also important to determine how the location and its amenities will benefit employee morale.
CONSIDER SPACE REQUIREMENTS
While geographical location is immensely important, having the necessary space to accommodate the efficient business processes associated with the company is also extremely important.
ACCESS TO THE EXPRESSWAY
The easier a person’s morning commute, the more they will be in the right frame of mind throughout the day.
It’s always important to ask the right questions before making a huge commitment. Here are the top 4 questions to ask when touring an office space:
1. HOW LONG HAS THIS SPACE BEEN AN OFFICE FOR RENT?
A quality Houston office space usually does not stay on the market for more than six months. If you are touring a place that has been on the market for an inordinate period of time, then it is time to start looking for the reason behind that! Knowing this information should most definitely color your impression of the entire tour.
2. IS THERE A GUARANTEE OF PRICING/RENT CONTROL?
Your small office rent should stay the same and be locked in writing for the totality of your agreement. You should not tolerate any raise in your rent during a tenure, and you must ask the landlord if he or she is willing to put this in writing for you before you commit to anything beyond six months at a time.
3. HAS THERE BEEN A RECENT INSPECTION DONE OF THE BUILDING?
You will need to see if the building that you are looking at is up to code. You should check for compliance in all offices, not just in yours. Ask for the paperwork to ensure that the building is up to code.
4. WHO ELSE IS HOUSED IN THIS BUILDING?
Remember that you are sharing a building with others most likely. If this is the case, then the other tenants in the building will certainly affect you.
Having a property manager who is attentive and responsive can really make a difference in your work experience. A great property manager is someone who is “EPIC”:
- Easy to Reach
- Customer Service Oriented