When looking for an office space for rent for a business, one may encounter many types of real estate, including commercial space and office space. While these two types of properties are usually used interchangeably, there are differences in terms of cost, location, type of businesses they can house, and much more. When it comes to finding the right space for a business, commercial and office spaces are two of the most common types of real estate. While they are often used interchangeably, there are significant differences between the two that should be considered before signing a lease.
Commercial Space and Office Space Definition
Simply put, commercial space is any type of non-residential property that is used to conduct business. These spaces can include warehouses, retail stores, hotels, restaurants, and much more. They can be owned or rented. On the other hand, office space refers to buildings, or office locations used to accommodate business operations, or administrative work. These types of properties may include co-working spaces, traditional office spaces, virtual offices, executive suites, and so on.
Differences between Commercial and Office Space for Rent
One of the significant differences between commercial and an office space for rent is that commercial properties tend to be less pricey than office spaces. Commercial spaces are often found in areas that are not as central or easily accessible compared to office spaces, which are usually found in areas with high foot traffic. Besides that, commercial spaces usually have smaller spaces due to their business operations, while office spaces often occupy larger areas.
Factors that Affect the Cost of Rent for Each Type of Space
All types of factors can influence the price of rent for either commercial or office spaces. The most notable few include location, size, condition, and duration of lease, among others. Renters should take note of these factors before deciding on the property they want to rent. Another factor that affects rent is the number of facilities and quality of the amenities in the property. Office spaces with luxurious amenities may cost higher.
Benefits of Commercial vs Office Space
Benefits that come with renting commercial space include lower rents, more space, and a little flexibility with different business models. Commercial spaces usually have a warehouse or storage space, allowing a business to store its products and equipment without extra costs. An office space for rent, on the other hand, provides the benefit of having a professional business address that adds credibility to the firm. Office space also provides businesses with an environment where employees can focus on their work.
Tips on How to Negotiate Rent for Either Type of Space
Negotiating for rent can be stressful, especially for new renters. It would help best if you came prepared. Understand the location of the property and whether it is in demand. Communication is essential – express your interest in the property, but at the same time, be clear about your budget. Settle for a lower rent amount if it is sustainable and acceptable for your business. Also, have your lawyer or someone with experience with lease contracts to read the contract before signing.
Calculate Return on Investment When Renting a Property
Calculating ROI is an essential concept in any business. First, you will need to calculate the rent of a property in a year. Take the monthly rent and multiply it by 12. Then you should calculate the gross operating income, which is rent multiplied by occupancy. Take away all the expenses from the gross operating income. The amount that remains should be the net operating income. Divide this amount by the total cost of the property, and the resulting percentage should be the return on investment of the property.As we have seen, commercial and office spaces have their differences when it comes to renting. Commercial spaces may be a better option for those who prioritize lower costs and flexibility, while an office space for rent may be best for those seeking professionalism and the right environment for work. Before renting, it’s crucial to consider factors such as cost, location, and amenities, and to negotiate for a reasonable rent amount.
Your Ideal Space
Schwarz Properties is your ultimate partner when it comes to commercial or office space for rent. Our experienced team of real estate experts can provide you with the best advice and service when searching for the perfect property. We understand the importance of finding a space that suits your business needs. Contact us today and let us help you find it for you!