Build Ready Tips.

Tips on Knowing What to Build.

Building a space can be confusing, so getting the basics right is essential.

Building the right office is a complex task and we are here to help simplify it. We recommend building and preparing a space that is at least semi-ready to move in and flexible, which many small spaces are not built for. It is important to focus your efforts and not over think the dollars for your transition. Here are the few things to work through.

Space and Layout

Calculating space is not that complicated, it is not broken down in an easy way to understand. You can visit our calculate page which breaks down what a room or 1,000 square feet can offer. It is easy to estimate using those measurements as standards. If you are building more than a room, layout is key. If you prefer open, find a space that is already an open environment or that is not fully built. If you seek offices, conference rooms, reception, kitchen and restrooms, finding at least a partially built out space is key. 

Broker

We are broker friendly and a commercial real estate broker can be very helpful, just know that if they represent you, they have the space’s interest first. The tenant representative is legally bound to safeguard the tenant’s interests. If you anticipate a complex agreement, having a broker is advantageous. If it is simple, a room to rent or a license agreement, extensive negotiations aren’t as applicable.

Budget

Chances are if you are a small company, you already know your budget. Depending the space, you may need to think of your budget in up to three ways as you move in.

• Move: Most small spaces aren’t a 100% ready to go and even furnished.

  • Technology: these vary on layout of the office, but typically $2-3 but can go to $-7 per square foot

  • Furniture: is often a landlord does not want to make if they don’t have to, but it can move a spacer faster. Costs for new furniture can be between $20-30 per square foot. 

• Monthly: Most small spaces have simple, flexible agreements.

  • There are 3 types of agreements to know that impact your ongoing budget:

    • License: standard for coworking, timeshares and straightforward room rentals. Usually all in and covers use of facilities. Usually short and very flexible, but more per square foot.

    • Direct lease: direct between the tenant and owner and can include taxes and property insurance. Can as low as 1 year or as high as 15 years. Learn more about leases here.

    • Sublease: subtenant and limited flexibility. Usually all in and may not see operating net costs of a space. Usually shorter 2-5 years with some degree of risk.

• Build: Most small spaces you should not need to build, but if you do here is some standard costs.

  • Architecture and engineering: cost per square foot is the driver. Architecture is usually $3-$5 for designs and engineering (plumbing, electrical, etc) is $1 to $1.50 per square foot.

  • Construction: typically around 75% of the budget. Get estimates and compare!

  • Permits: these vary a lot and we encourage a local permit expediter. Typically 2% of the budget.

  • Landlord Fee: if doing construction, not uncommon for them to charge 1% of hard costs to manage the building.

Location

Location, location, location. Two main things to consider are trade and transportation, then the space and floor plan. 

Proposals

Once you found two to three layouts, choose and start your tenant improvements. Many small office spaces are fairly straightforward and tenants have a good degree of negotiation power. You should understand general terms, rent, escalations, expenses, concessions, length of contract, security deposit at a minimum.

Vet the space

If it is more than a room, help prospective tenants overlay office needs onto the space. Take your requirements and see which best accommodates specific needs. Compare rates and terms. 

Attorney

Depending on the complexity an attorney may be needed. They will help govern your rights and responsibilities. This is not a requirement, but for your peace of mind it is best to know if all clauses and terms protect your interests. 

Know your rights:

The most important thing is to know your rights. Don’t sign up for risk, whether the agreement or furniture, know the language and for small spaces flexibility is likely your biggest factor.