Offices for Rent Building Costs
Office for rent is a “hot” field recently. The number of businesses increased rapidly, leading to a “fever” to find office space. But many investors wonder what the cost of building an office for rent includes. Is it too expensive?
Why should you invest in the office for rent building segment?
If you follow the latest statistics on the number of startups in Vietnam, you know that there are more and more startups. On the way to development, every company also needs an office to work, receive partners, and legalize business papers… So the demand for office rentals by companies also increases.
Enterprises in Vietnam are very diverse: large, medium, and small enterprises. The finances of each business segment are different. Large businesses require a high-end office for rent. Small businesses just need a comfortable place and a good location. Investors, whether large or small, when building an office, have their client files. There is no need to worry that the investment capital is low, and the construction is completed without tenants.
Vietnam is aiming to become a leading startup hub in Southeast Asia. The entrepreneurial spirit is high, family members have many conditions to start a business. Therefore, investors taking shortcuts, building office for rent buildings from now on is the right move.
If you calculate well, and spend some capital to build, after putting the project into operation, it only takes the first time to recover the capital. After that, the investor will have a source of money “flowing into his pocket”. ” every month.
Summary of construction costs for office for rent
The construction of any project involves many different items. For the construction schedule to be shortened, to ensure the quality of the work, and attract customers, investors need to know a few fixed amounts below. Avoid putting all your budget into one account. Or stir-fried any copper. Thus, the continuous construction will not finish the work.
Cost of renting or buying premises
This is a rather large initial cost that investors need to consider carefully before making money. There are two cases, to have construction land, one is to rent long-term, and the other is to buy private land. You can choose to purchase “gold” land located in the inner city to build office for rent, where there are convenient roads. To save more, you can choose the land near the center. When choosing, consider choosing:
- The land is densely populated, not too remote, and the address is clear
- There are good facilities outside the area: schools, public offices, markets…
- Stay away from cemeteries, hospitals, and landfills… – places with bad feng shui.
- Don’t be greedy for cheap land. Invest in a good piece of land. Architecture, interior… you can change it easily if you want. But completely changing the location is a complex story.
Cost of applying for a building permit
The application for a project construction permit has many different items, for example:
- Application for a construction permit.
- 2 sets of approved technical design drawings according to the provisions of law.
- Certificate of land use right by the law on land.
- A declaration of personal capacity and experience (according to the form) is enclosed with the construction practice certificate.
- Investment approval decisions of the project.
- Report on appraisal results for works according to regulations requiring design appraisal (applicable to construction permits for renovation and repair).
- The commitment of the investor to ensure the safety of the work and neighboring works for the construction works with basements.
- The investment decision for the work must make the construction investment project.
- The above documents do not all investors have the capacity or personnel to perform. Some papers must be outsourced, even hiring a packaging company. In addition, when conducting transactions with public authorities, you will incur some other costs.
Cost of hiring a design and construction unit in office for rent building cost
To have a floor plan, easy to design and construct, you need to hire a design and construction unit. This is also a pretty big expense. It would help if you asked the units to see the capacity profile to choose the most suitable unit. Should choose reputable units with a lot of experience in the field of design and construction for peace of mind during the process, reducing repair time because it is not desired.
Cost of completing infrastructure facilities
The most popular office rental model today is the package office model. Therefore, after construction, you need to spend a lot of money to complete the infrastructure. This is the cost of building an office for rent that is “worth the money”. Compared to renting raw space, now, businesses prefer to rent a packaged office.
These are offices with A-Z package investment in lighting, air-conditioning, ceiling fans, ceilings, floors, etc. In addition, in terms of general infrastructure, you need to invest in high-speed elevator systems. altitude, fire protection system, parking lot…
Many people ignore this cost in the construction and operation plan of the office building. If the office building is good and beautiful, but the investor does not attach importance to marketing, it isn’t easy to be full of tenants as soon as it opens for sale.
There are many communication channels for you to “pour money” into promoting office rental news such as TikTok online channels, forums, websites, Facebook groups, fan pages … or offline channels to paste leaflets, advertise billboards on the street or screens of apartment buildings, offices…
You can read the previous article here: The Role of The Office Management Unit for Lease