Many business owners get to a point where the original office space they leased no longer fits their purposes or size. In that case, it is important to get a new space.
However, it is equally important to maintain profitability margins by ensuring that you do not buy more space than what you need. How do you figure that out?
Your rentable area
Business News Daily takes a look at property leases for small businesses and how to calculate within them. First, you need to know about the general prices of the buildings in your area and how much square footage tends to sell for. For example, commercial space in Beantown usually sells for around $24 per square foot.
Next, figure out exactly how much space you need in order to properly conduct your business. This is your rentable area, in terms of commercial real estate. Consider the room that you need for inventory, employees, equipment and any other unique business assets.
The useable spaces
Take a look at useable spaces as well. Many buildings have spaces that you can use, but which do not solely belong to you. This includes things like courtyards, elevators, stairways and lobbies. You need to pay for these areas even if you do not have exclusive use rights.
The load factor for spaces often gets published by the landlord, so this is something to remember and consider when renting a space. Understanding the differences between rentable and useable square footage can make picking a place to rent an even easier task.
