When setting out to rent office space, one thing that jumps out from classified ads is the dollars per square foot pricing. In order to budget for the office space and compare properties, it's helpful to translate the price per square foot into the rate for a year and break it down to a monthly rent. Some brokers and real estate agencies offer calculators that simplify coming up with the figures you need.
Check the square footage for the office space. This information is available on the advertisement or the listing from a real estate agency. It should be on the rental agreement if it's a space that you already rent.
Multiply the number of square feet by the base rate. The base rate is the cost per square foot. For example, 1,000 square feet at £16 per square foot comes to £16,250 for the first year.
Divide the annual rent by 12 to determine the monthly office rent. For example, the £16,250 annual rent breaks down to £1,354.10 per month.
Calculate subsequent year's rent by multiplying the original base rent by the percentage of the increase. For example, if the second year's rent increases by 3 per cent, calculate the new base rent by multiplying the original base rent by 3 per cent.
Things you need
- Calculator, optional
- Online office rent calculator, optional