Renting Office Space? 3 Tips to Save You Money
August 7, 2017
Are you looking for new office space for your growing business? There are many things to consider when looking for somewhere suitable, not least;
Who will be our workday ‘neighbours’?
Will it present the right image to our clients?
How soon can I get out if it’s not suitable?
Is it easily accessible?
And of course – How much will it cost?
Here to give you 3 simple tips to navigate this area sensibly and to keep your Finance Director happy is K-Club Associate and Chartered Surveyor Martyn Markland of the Tenant Advisory Group.
1. Search the whole market for office space
There are currently over 600 office suites available to rent in Manchester City Centre, most of which are offered to let by the landlords. However, of these suites, around 80 are available through the existing tenant by either a sub-lease or a lease assignment and importantly the terms that can be secured on ‘tenant space’ are usually far more attractive than those available on ‘landlord space’.
The challenge for tenants looking for new space is that landlords and their agents don’t really want you to know about ‘tenant space’ as it competes with their offering and results in lower rents being achieved. From a tenant’s perspective however, ‘tenant space’ can represent outstanding value for money as this is often already fitted out and available on highly flexible terms. In some extreme cases, fully fitted ‘tenant space’ can still be secured rent free for the duration of the sub-lease.
2. Stay calm and carry on
Despite the hype about Manchester’s office market, there are still plenty of opportunities available. Don’t panic! Ensure you go through a methodical selection and shortlisting process. By doing so you will encourage competition between vendors seeking your business as a tenant – not the other way around. This should pay dividends when it comes to the incentives and the lease terms you are able to negotiate.
3. Measure the office space floor area
You would be amazed how often the floor area that is quoted by a landlord is an over-estimate! In my experience, it always pays to have this fundamental detail checked by a qualified surveyor before you agree the annual rental figure. In any terms that are agreed, make sure the floor area is calculated on a Net Internal Area (NIA) basis in accordance with the Royal Institution of Chartered Surveyors Code of Measurement Practice (2007) 6th edition. Avoid at all cost any reference to the International Property Measurement Standards or ‘IPMS 3 – Office’ as these always result in a higher measurement which would of course, favour the landlord not you!
So, there you have it! If you are looking to move into new premises then do bear in mind the points that Martyn has raised and we’ll have our fingers crossed that the process goes smoothly for you, as well as saving you some money.