Starting a small business can be an exciting and overwhelming experience and especially when it would start by finding a small commercial space for rent.
As a small business owner, you need to think about everything from the product or service you offer to the location of your business.
One of the most important decisions you’ll have to make is where to rent space for your business.
But how much does it cost to rent space for a small business?
In this article, we’ll explore the different factors that affect the cost of renting commercial space and give you an idea of what to expect.
– Understanding the Different Types of Commercial Space
Before we get into the cost of renting commercial space, it’s essential to understand the different types of commercial properties that are available.
The type of property you choose will play a significant role in the overall cost of renting space for your business. Here are the most common types of commercial spaces:
1. Office Spaces
Office spaces are typically the most expensive type of commercial space.
They are designed for businesses that need a professional space to work, meet clients, and hold meetings. Office spaces come in a variety of sizes, from small cubicles to large suites.
The cost of renting an office space will depend on the location, size, and amenities offered.
2. Retail Spaces
Retail spaces are designed for businesses that sell products or services directly to customers.
They can be located in shopping centers, malls, or standalone buildings.
Retail spaces are typically more expensive than office spaces because they are in high-traffic areas. But Locating your business in close places like this is considered like a free local advertising channel.
3. Industrial Spaces
Industrial spaces are designed for businesses that need space for manufacturing, storage, or distribution.
They can be located in industrial parks or standalone buildings. Industrial spaces are typically less expensive than office or retail spaces because they don’t require as many amenities.
– Factors That Affect the Cost of Renting Commercial Space
Now that you understand the different types of commercial spaces let’s explore the factors that affect the cost of renting commercial space.
1. Commercial Space Location
The location of the commercial space is one of the most significant factors that affect the cost of renting.
If you’re looking for space in a busy urban area or a prime location, you can expect to pay a premium price.
On the other hand, if you’re willing to rent in a less busy area or outside the city center, you can expect to pay less.
2. Commercial Space Size
The size of the commercial space is another factor that affects the cost of renting. Generally, the larger the space, the more expensive it will be.
However, the cost per square foot decreases as the size of the space increases.
For example, a 500 square foot space may cost $30 per square foot, while a 1,000 square foot space may only cost $25 per square foot.
The amenities included in the space also affect the cost of renting.
Some common amenities include air conditioning, heating, internet access, security systems, and parking.
The more amenities that are included, the higher the cost will be.
4. Lease Terms
The lease terms of the commercial space can also affect the cost of renting.
Short-term leases are typically more expensive than long-term leases because they offer more flexibility.
However, long-term leases often require a larger upfront investment.
– Average Cost of Renting Commercial Space
So, how much does it cost to rent space for a small business? The cost will depend on the factors we discussed earlier.
Here are some average costs for different types of commercial spaces:
1. Office Spaces
The average cost of renting an office space in the United States is around $2.59 per square foot per month.
However, this price can vary significantly based on location, size, and amenities.
2. Retail Spaces
The average cost of renting a retail space in the United States is around $23.23 per square foot per month.
However, as mentioned earlier, the cost can vary significantly based on location, size, and amenities.
3. Industrial Spaces
The average cost of renting an industrial space in the United States is around $6.40 per square foot per month.
Again, this price can vary depending on the location, size, and amenities offered.
– Tips for Finding Affordable Commercial Space
Finding affordable space can be challenging, especially if you’re starting a new business.
Here are some tips to help you find affordable commercial space:
1. Consider sharing space
Sharing space with another business can help you save money on rent. Look for businesses that complement yours and share space to reduce your costs.
2. Negotiate the lease terms
Don’t be afraid to negotiate the lease terms. Ask for a lower monthly rent or a longer lease term to reduce your overall costs.
3. Look for hidden costs
Be aware of any hidden costs associated with the commercial space, such as maintenance fees or taxes or the need for decartion and even ambient lighting by day.
These costs can add up quickly and significantly increase your overall costs.
4. Consider a less desirable location
Renting a commercial space in a less desirable location can save you a significant amount of money. Look for areas that are up-and-coming or have potential for growth.
Renting a place for business is a significant expense, but it’s a necessary one.
Understanding the different types of commercial spaces and the factors that affect the cost can help you make an informed decision.
Remember to consider the location, size, amenities, and lease terms when looking for your business commercial space.
With a little research and negotiation, you can find an affordable commercial space that meets your business’s needs.