Office Leasing Guide You Should Know

Finding an office to rent is one of the important steps in running a business. However, in the process of finding an office to rent, businesses often encounter mistakes that make renting an office not as effective as desired. Here are a few things Office Leasing Guide should remember to limit unfortunate mistakes that can happen and rent office space more effectively.

Don’t just pay attention to office rental prices in the Office Leasing Guide

Many businesses and tenants in the process of looking for an office leasing guide only pay attention to the office rental price. Compare high and low prices but do not know that the rental price is actually only a part of the total cost that customers have to pay. pay to operate a workspace. So stop choosing a building based on unit price comparison. Please summarize all types of costs below:

• Rent cost
• Service charge
• Air conditioner electricity bill
• Electricity consumption in the office
• Parking fees for cars and motorbikes
• Overtime costs (if the business regularly works overtime)
• Tax

Only when synthesizing and estimating the total costs can you most accurately evaluate office rental prices. And choose the building that best suits your business’s finances.

Read more: Professional Office Building Management Service

Don’t rush to deposit a reservation if you haven’t negotiated the contract yet

A typical office lease negotiation process will include two steps:

Step 1: Sign the rental invitation letter and transfer a deposit equivalent to 1 month of office rent

Step 2: Sign the office lease contract and forward a deposit equivalent to the next 2 months’ rent.

However, the reality is that most buildings do not stipulate all issues related to the costs customers need to pay in the rental invitation letter. So tenants are easily confused and miscalculate the total cost. So ask the building owner to send you a draft contract and negotiate all costs and terms before making a deposit. Because if they have made a reservation deposit without negotiating, tenants are likely to be in a weaker position in future negotiations and contract negotiations.

Consider other offers instead of just paying attention to rental price – Office Leasing Guide

Not every building can easily reduce office rent, and it is even more impossible to reduce prices deeply compared to the present. Because this also affects the rights of customers who have rented offices in the building. But instead of just focusing on negotiating the rental price, you can switch to negotiating other cost items because after all. The total cost the customer must pay includes all costs in the contract. You can consider a few incentives such as:

Calculating overtime costs is most beneficial for the business

Depending on each building, there are different ways to calculate overtime costs. There are 3 main ways to calculate overtime fees today:

• Calculated by office: For example 300,000 VND/office/hour
• By office rental area: Example 0.02 USD/m2/hour * Rental area
• Based on equipment used: For example, 10 USD/unit/hour, usually one unit (FCU – Fan Coil Unit) cools an area of 40 – 70 m2 depending on the type of equipment.
• Normally, calculating based on office rental area will be more economical than using equipment. But for many buildings, customers who do not use central air conditioning will be free to work overtime. Therefore, your business should base on your need to work more or less to negotiate the most beneficial fee method for you.

If in case the building charges overtime based on the air conditioner used and cannot negotiate a lower cost. The business can install additional local air conditioners (if technical conditions allow) to overtime costs can be reduced.

Read more: Office Rental Cost by Grade in HCMC

Negotiate overtime fees based on area

If the office building charges overtime based on the area, that is, $/m2/h, your business can take advantage of the rented area to negotiate. For example, with a large office rental area, you can get incentives to reduce working costs. overtime. Or if the building is calculated based on the entire office area, you can negotiate a lower fee, for example 300,000 VND/office/hour. You can negotiate down to about 200,000 VND/floor/hour. Usually, with large office tenants and long contract terms, building owners will give priority to them, making negotiations easier.

Apply for additional overtime fee incentives in the Office Leasing Guide

In fact, many buildings do not have a specific overtime rate and are often based on the tenant’s agreement with the building owner. This is an advantage for office tenants to comfortably negotiate the most favorable terms for themselves and don’t forget to ask for additional incentives. And often, the courts will also create the best conditions for businesses to benefit both sides. Businesses that regularly work overtime can consider and negotiate the time to calculate office hours.

Information you need to find out to “securely” win

Negotiating office rental is one of the most important steps to ensure businesses can rent office space most effectively and cost-effectively. However, when negotiating with the building owner, if you want to achieve the desired results. Businesses also need to understand some information to have the best mindset in the negotiation.

Advantages and disadvantages of office buildings for rent – Office Leasing Guide

First of all, your business needs to clearly understand the advantages and disadvantages of office buildings for rent. Because this is important information to ensure businesses can gain a good advantage in negotiations. To get this information analyzing the pros and cons, of course the support of an office rental brokerage unit is extremely important. Please ask the rental consultant to synthesize building information, evaluate and give pluses and minuses for easy negotiation. And based on the limitations to negotiate with the building owner the most beneficial terms for the business.

There is more or less vacant space in the building

Knowing how much empty space there is in the building is also a beneficial factor for you in negotiating office rentals. For buildings with a lot of vacant space, the building owner will often give more incentives to businesses. Because they want to speed up the office rental process and optimize business. Therefore, businesses will easily negotiate and easily convince the building to get the most favorable terms for themselves.

Has the premises the business wants to rent been vacant for a long time?

With premises that have been empty for a long time, building owners will often want to promote negotiations and office leasing to achieve the best results. Because the premises are empty for a long time, it also means that the building owner’s revenue is affected. Therefore, customers will have an advantage in negotiations. In contrast to newly vacant premises. Businesses can choose according to the building’s psychology and tap into the psychology of wanting to rent it out quickly to exploit the business.

Movement rate of office tenants and reasons

Is the mobility rate of office tenants high or low? And what are the reasons for moving offices? Usually a building has additional vacant space, unless it is a new building put into operation, then most of the time there will be a few new units moving to new offices. If a building has a high rate of tenants terminating contracts. The building owner often tends to stimulate demand and offer more incentives to tenants.

Rent and other costs of buildings in the same area

Of course, it is indispensable to summarize the rental fees of buildings in the same area to create an advantage when negotiating. If the building has a higher price than the average price in the area, you can use that to negotiate a lower price.

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In conclusion, above is the information about Office Leasing Guide that you need to synthesize when negotiating to rent an office to have the most advantage in the negotiation.