Factors Affecting Office Prices That Businesses Should Know
Before deciding to rent an office, tenants must consider all the costs of office leasing (office prices) to find a suitable office for rent. One of the decisive costs is the price of office space.
Factors affecting office prices that businesses should know
The attractiveness of the location is the most important factor affecting office prices. High-class facilities, located in the central area of the city, attract many interested tenants. Therefore, these prime locations are always leading the trend with the highest rents.
Similarly, locations that offer fewer amenities, less accessibility to transport are less attractive and have lower office prices.
2. Building size
Size is the second-factor determining office prices. Famous office buildings with massive architecture often have a large difference in office prices compared to 2-3 story small-scale offices.
3. Service quality
After choosing an office for lease and a suitable location, the quality of service is one of the factors that determine the customer’s choice to sign a contract and stay for a long time.
In fact, Grade A office buildings and Grade B office buildings will have higher service fees than other low- and medium-priced office buildings. However, besides the high cost of professionalism, the management team and enthusiastic service staff ensure that it is worth the money the business spends.
4. Rented area for office prices
Online advertising office price is the rent calculated by square meter. This cost will be calculated on a monthly or yearly basis. For example An office with an area of 100m2, the official price is $ 12/m2, the monthly rent will be 100m2 x $12 = $120. In addition, you will pay an additional 10% tax to the state. Therefore, the monthly rent payable will be $120 x 1.1 = $132, a year $132 x 12 = $1584.
Office rent is the cost of paying rent to use the office as a place of business. This cost will be separate from other additional fees such as service fee, cleaning fee, tax.
In the Ho Chi Minh City market, rental prices in the next few years will tend to increase. Due to the shortage of office supply for lease in the context of more and more established Star-up businesses.
The highest office price is in Grade A buildings, the average cost is from 40-65S/m2. Followed by Grade B office with 30-45$, C office at 20-35$ and cheap from 12-25$. Depending on the area, the price of office space according to office classification will also change, the further away from the center, the lower the office price.
6. Agreement, lease term in the contract
In practice, rent is finalized through negotiation. Actual rental rates and incentives will depend on market supply and demand, vacancy rate, and rental duration in the contract.
Incentives, in addition to being applied on the total rent of the contract, may include rental exemption period, rental discount, management fee exemption, overtime fee, etc.
7. How to know the office prices you rent is too expensive or not?
Many factors can affect office prices, To choose a suitable place, you need to carefully consider whether the location has too high office prices or not.
Take enough time to research the contract and negotiate terms that are beneficial to your business.
Compare office prices in similar locations that you are interested in, making a summary of the advantages between buildings. Consider office prices and advantages and then decide to rent to spend a worthy cost.
Find an office leasing agent for advice on the state of the market and be provided with the latest official price list of other options. Understanding the market will help you determine the closest office price to reality.
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