Office Space question?

Question

How much is the average cost for a 1500ft to 2000ft squarefoot office space

Answer 1

Where in the world?

Call up commercial real estate brokers in your area and ask. Alternatively, look at their Web sites; there might be some information there...

Answer 2

I'd recommend going to loopnet.com and getting their free subscription and just search in the area you're looking for comparables, or call a few agents. Alternatively, if you want to post additional information, I can give you some good numbers. It varies a lot based on the class (i.e. are you talking dentist office, financial planners office in a single-story building in the suburbs, class A office in Manhattan, or class B in Detroit), and location relative to a city (i.e. CBD-Central Business District, Urban, Suburban, etc.). Its generally quoted in $dollars per square foot, so you might get $10psf (a very low-end number for a suburband office in a 500,000 = 1 million population city), which translates to $20,000 per year for a 2000 square foot space. Commercial leases can be as short as 1 year, but most professional operations are looking for 5 and 10 year commitments. You can ask for improvements many times - for example, you might want a new divider wall and furniture that costs $20,000; you can ask the owner to provide that for you, and you can reimburse them with your monthly payment interest free. In this example, you have a 10-year lease, $10 psf on 2,000 sf, and $20,000 in tenant improvements, so your monthly payment might be $1,833 ([$20,000/10 years/12 months per year ] + [$10*2,000 sf / 12 months].

Answer 3

Look in the local paper prices differ from one area to another. Call a leasing company.