Please don't take my stapler
We are looking for office space for a new business that the little lady and I have started. There are three choices, but nothing really sounds like a great deal. I would like to know from people that have done more commercial leases than myself what looks like the best deal:
a) Street level office/retail area with large window frontage on a street downtown. This is an early 1900s building that has been renovated. The landlord gives no infill allowance, but new floor restoration/coverings are required, a wall to section off from other spaces is required (and not provided by landlord) and paint/other infill is required. $13.5/ft/mo NNN
b) A nice corner office space on the 2nd or 3rd floor of a renovated 1900s building. The space needs new flooring and paint, but is in relatively good shape. Overlooks the city square and an upscale outdoor restaurant. This is a gross lease with utils, internet, trash and other costs included. Very little chance of any infill allowance. $15/ft/yr
c) A space in a renovated early 1900s 7 story dept store that will have upscale penthouses, offices and restraints. This used to be one of the nicest buildings in the city until the 80s when the store closed and the building sat vacant. The building won't be ready for infill for another year from now, but the landlord is offering $35/ft infill, $3/ft move in and 6 months free lease if we sign a lease before oct. The bad thing is that the building was supposed to be done last spring and now they say next summer, so who knows. $13/ft/mo NNN
All of the properties are within 1-2 blocks of each other and the office sizes are relatively the same. I hate the idea of investing in upgrading somebody else's property for the privilege of leasing from them. I want to know what other people think. I highly value people's opinion on here, so please let me know any thoughts (even if you think it is obvious).
Wow....I don't much like any of those deals if you are located in Springfield, MO!
I think your phrase "there are hundreds of 4x4 shops on and off-line" is a very valuable thing to consider in making this decision!
How much business will be done "online", and how much "offline"?, and do the offline numbers really add up for this type of business?.
Personally I would make the business 99%+ "online", and work out of a very affordable place (large home with external workshop/office buildings maybe?).
Just my 2 cents from the facts given in your post and a look at your homepage :)
I already have a office/warehouse for the site in my profile. I do agree that would be way too high of rent district for that business. I'm talking about a new (totally unrelated) business.
I haven't found any nice office space for under $10/ft in the city, if you know any around here, please let me know. I believe those quoted rates include CAM.
[edited by: iJeep at 4:52 am (utc) on Sep. 1, 2006]
That's better than here in the east.
My basic rule of thumb in these matters is make the best deal that you can that requires the least amount of time afterwards. Time is money; you don't want to have to housekeep the new office, you want to focus on the business that makes money. Saving money is not as important as making money. You are not in the office biz.
That looks to be a or b to me, most likely b. You'll have to spend a little upfront to set up, but then it's done and you can get back to work.
Watch out for the lady here--she will likely want to spend money on plants, nicer carpeting, etc. Again, don't spend a lot of time talking about it. Get back to the biz. If she wants to do that, let her do it alone and after hours. Don't try to talk her out of it--you can't and it will take up time and fray nerves. Smile and get to work. Plants are nice, anyway.
Thanks for the advice on staying focused. I really think that helps eliminate c from the running.
|Watch out for the lady here--she will likely want to spend money on plants, nicer carpeting, etc. Again, don't spend a lot of time talking about it. Get back to the biz. If she wants to do that, let her do it alone and after hours. Don't try to talk her out of it--you can't and it will take up time and fray nerves. Smile and get to work. Plants are nice, anyway. |
-- LOL -- very true.