Strategy 4: Traditional Office Space

If your branch, area or regional office is to house eight or more persons and your presence in the market is relatively stable, this may the time to consider 'permanent space'.

After you have been quoted a rental rate, you will need to add the cost of operating expenses, taxes and utilities as well as the cost of any 'tenant improvements' needed to customize the space to your requirements.

When comparing rents, beware of the difference between 'rentable' and 'usable' rates. If you are looking at 2,000 square feet and you are being quoted $19 per square foot, you might suppose that the annual rent would be $38,000.

But in most cases this usable area is multiplied by a 'building' factor so as to take into account elevator shafts, common hallways, restrooms, etc. A 16% building factor will increase your rent to $44,080!

Lease terms range typically from 5 to 10 years. Some flexibility may be achieved by requesting a shorter term lease, but not without some additional cost.

Some additional items for your budget will be:

• Secretary/receptionist
• Copier and fax machine
• PC's and printers
• Telephone and voice mail systems
• Furniture
• Coffee maker, microwave and refrigerator