How Do I Calculate Rent for a Shared Office Space?
If you’ve found office space to rent that’s in the perfect location but is too big and too expensive for your business, you still may be able to lease the space by finding another business owner to share the space. Depending on the location of the office space and the amenities of the property, sharing a lease for one space is cheaper than renting two separate spaces that total the same size. Before you enter into a lease for the space, you and the other business owner should determine how the rent will be shared. The most common method is by square footage.
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Instructions
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Visit the space with the other business owner and determine which rooms of the office space will be used independently by each business and which rooms will be shared, such as restrooms and break rooms.
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2
Measure the width and length of all the rooms, hallways and closets in the office space and multiply the width times the length of the individual spaces to determine the square footage of the space.
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3
Add all the square footage together to get the total usable square footage for the office space.
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4
Create a list for each business owner detailing the individual rooms they plan to use and the total square footage for those rooms.
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Add common rooms to each business owner’s list with an appropriate division of the square footage based on projected usage. For example, each owner will probably use a hallway and restroom equally, so allocate half the square footage of those areas to each owner.
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Total each business owner’s personal square footage.
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Divide each business owner’s personal square footage by the total usable square footage calculated in Step 3. The result of the calculation is the percentage of space each business owner will utilize in the leased office.
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Multiply the total monthly rent amount by each owner’s percentage of use to get a proportionate share of rent for each owner based on the individual use of the office space by that owner.
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References
- “Negotiating Commercial Real Estate Leases”; Martin I. Zankel; 2000
Resources
- Photo Credit Creatas/Creatas/Getty Images
