How to Save Money with Your Office Space
Renting office space for your small business is a solid investment, but it doesn’t have to be one that breaks your budget every month. A few savvy strategies can help you save money with your office space.
Take Advantage of Economic Realities
Companies seem to be continuously downsizing, rightsizing or closing up shop altogether, leaving plenty of empty office space. Even those who are not necessarily downsizing may be moving to another location with time still left on their lease. Take advantage by seeking out subletting opportunities, which can often snag you discounts of 25 percent or higher.
Let Yourself be Wooed
Certain cities or communities try to woo new businesses to the area with incentives. Others have economic-development zones where the city offers low-interest loans, tax abatements and other perks that can pay off handsomely. These often pull the attention of young business owners or Millenials looking for a deal.
Seek out other businesses that offer services that compliment yours, like a graphics firm to go with your website design studio. Then share the space and split the rent. You can still have your own smaller suite of offices, but you’ll cut costs dramatically by sharing a common lobby, the kitchen area, office machines, a receptionist, and perhaps even administrative personnel. Smaller office spaces or shared spaces can provide significant cost savings.
If you happen to provide services the building owner or leaser needs, you can offer a discount exchange for the use of a company’s extra office space. One computer repair and service company proposed a 5 percent discount on services in return for office space, a deal written into the maintenance contract. For the 18 months the contract was in place, the computer company ended up paying all of $125 per month for rent.
Negotiate the Optimal Lease
A few additional tips can help you make the best deal on any lease you may be signing. These include:
- Getting representation, with both an agent and a lawyer
- Measuring the square footage yourself
- Putting a cap on rent increases, with a fixed percentage on annual increases
- Getting a cancellation clause and an option to sublease
- Ensuring you have the option to renew
Prime office space is one that’s continuously within your means, and these tips can help ensure that happens, year after year.