From office rent to utilities and IT maintenance, there are a lot of ongoing costs for businesses, and it can be a challenge keeping those costs under control. Hence, companies need to cut costs. Here are a few ways businesses can cut costs during the earliest stages of finding office space.
Tailor a Space to your Needs
When looking to lease an office space, you may need to work with a space planner even before beginning your search to identify the ideal size and layout for your company's needs. This is because one 10,000-square foot space is not necessarily the same as another 10,000-square foot space due to varying layouts. Also, different common areas can greatly affect a space’s usability.
Many suppliers are willing to give discounts as well as other forms of cost-saving options when you negotiate with them. Hence, you must review your suppliers and switch to those who are willing to give you price guarantees to get a foot in the door of your business.
Downsize Your Space
As companies are adjusting to the economic effects of the pandemic, moving to a smaller office or relocating to a new area could be a useful option to consider when cutting costs. In case your lease is expiring soon, you may want to evaluate the amount of space you are using and check if you may need to find a smaller office space or relocate to a cost-friendly environment. If you like the current space you are in, you can also renegotiate your current lease to take less space.
Consider the Entire Concession Package
While it is important to consider the monthly rental rate when deciding on an office location, it is tremendously important to consider the entire concession package. For example, issues such as rent abatements, build-out allowances, or relocation allowances can easily become a large business expense.
Take Advantage of Negotiations
You can create a sense of competition between potential landlords when negotiating a new lease or re-negotiating an old one. If you want to have an advantage in negotiations, you make it clear that you are looking at multiple spaces. This will help you in getting the best price for your next office space. Your landlord may be willing to reduce the rental rate or provide you with a generous rent abatement or free rent period if you're willing to extend the term of the agreement.
Go Eco Friendly
Another way to cut costs is by becoming more eco-friendly. You can easily reduce the cost of running your office by encouraging your staff to switch their computers off fully at the end of each day, turn off lights or switch to motion sensor lighting.
Work with a Tenant Rep
If you want to cut costs when leasing an office space, you can’t rely on in-house services (such as an architect) offered by a Landlord. You have to work with a team that is on your side. Tenant rep brokers work for you and ensure your objectives are met by negotiating terms that are cost-effective and favorable for you. They get paid by the landlord once you sign a lease, so their services are free, while having only your interests in mind.
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