Businesses want to find the highest quality office space that fits their budget but few companies know the main factors that drive the cost of space. The three basic factors that affect the cost of office space are location, lease structure/negotiation and the layout.
It is vital to understand these three components and how they interact in order to get the most value out of your office space. When tenants find themselves trapped in office space where they are overpaying for or under-utilizing, it is because they failed to adequately address one of these factors.
The first component is location which drives costs for both labor and leasing which the Landlord will strive to maximize compared to what the current market conditions will bear. These costs can vary significantly both among market areas and the situations of particular business owners. We provide clients with a comprehensive evaluation of individual cities and communities to uncover hidden opportunities, define costs and reveal value that is often overlooked.
Leasing is the second factor because it requires an understanding of current market conditions in order to negotiate favorable financial terms that compliment the objectives of your company. Great deals are not just sitting there for you to find. They are structured through an effective negotiation strategy. In San Diego, landlords are offering more flexible lease terms and aggressive concessions to attract dependable tenants. To take full advantage of these favorable market conditions and create leverage in lease negotiations we advise using an experienced tenant representative.
The third component for cost effective space is layout. Maintaining cost control over the design and construction process will be a major contributor in keeping occupancy costs down. A lot of companies today are increasing their focus on space utilization with the objective of doing more with less. Securing the right amount of office space through efficient design, space standards and construction management can produce significant cost savings.
All three components interact in different ways and its in the best interest of any business to use a tenant rep to help them navigate throughout the commercial leasing process.