Leasing Like A Pro: Understanding Square Feet
Saturday June 2nd, 2018
Posted at 11:00am
There are a number of things you should consider when renting a space. In fact, the list of questions and details you haven’t even thought of asking can quickly become overwhelming. Becoming informed on the ‘fine print’ is an important step in avoiding miscommunication, which inevitably leads to miscommunication. Saving you from all of this confusion will give you the confidence you need to convince everyone that YOU are a PRO.
One of the first things you should understand is how landlords come up with the cost of space. (Warning: here comes the math!)
The square footage (yes, you will finally understand its significance) is a certain amount per square foot of the leased space and can be worked out through a simple equation:
$xx.xx x sq.ft = annual rent amount.
Looks like your math teacher was right, algebra has its place in the world after all. Now let’s plug you in to see how you fit into the equation.
Imagine, you walk into your dream office space and think, “This is it!” You can picture your team sitting around you, brainstorming and firing away at those tasks. This perfect office space is 2200 square feet. You’d like your employees to have enough space, so you estimate about 50-100 sq.ft per person (about the size of a small study room.) Your 15-person team will fit splendidly.
You are informed that a 2200 square foot office space is quoted at $11.50* per square foot. Time for that equation to rear its useful head again. If $xx.xx x sq.ft = Rent, and we plug the numbers in correctly, $11.50 x 2200 = $25,300 annually. If you’d like to budget monthly, just divide the yearly number by 12 to reach our monthly rental amount of $2108.33.
Simple, right? See, math isn’t so scary.
Now you know how your landlord gets this magic number, and how you can make the most of the space you’re leasing.
Though you have a little more lease knowledge, never forget to read the fine print! Be mindful of the fact that GREY AREAS EXIST and each commercial landlord operates differently.Ask your landlord to walk you through the equation if you still don’t understand. Ask for the annual and monthly amounts, and make sure you know where your money is going so that you don’t end up in a financial pickle – they can be pretty sour.
Understand what you sign. Lease smart. Lease safely.
Founded in 1962, Lessor Ltd is a family owned and operated company dedicated to serving the people of Windsor and Essex County. One such member is Christine Davison who uses her more than 20 years of experience in the commercial leasing environment to help businesses thrive.