5 Hidden Costs in Commercial Office Space in Naples
You’re proud to be a small business owner, but despite the independence that comes with being your own boss, working from home has its pitfalls. While 52% of all small businesses are home-based, you may be looking to take your business out of your home and into an actual, official office space. That is a huge step for most small businesses; it takes a lot of work to get to a place where that is a financially sound decision.
There is a certain appeal to working out of your home: it’s cheap, it’s cozy, you can stay in your pajamas for most of the day without much judgment and there’s a built-in diner, i.e. your kitchen. That being said, working from home also has plenty of downsides. There is nearly no quiet or privacy when other people are home, especially with kids. You may have to meet with clients in a noisy public setting (how many iced lattes can you drink in one day?) and there can be a mountain of distractions like laundry or your television. Not to mention, it’s just plain lonely sometimes working from home.
If you’re daydreaming about taking your small business out of your home, there are some major cost considerations you must weed through to decide if it’s right for your business and the biggest of those decisions is the type of office space that will work best for you. In particular, if you’re looking into leasing a commercial office space, there are some costs that may not be as noticeable at the forefront.
If you are unsure of whether or not you’re ready to make the leap to a long term lease in commercial space, here are a few hidden costs you may want to consider.
Common Area Maintenance (CAM) Fees
One of the larger fees you will see when leasing a commercial office space is the CAM fee. This covers the maintenance on all common areas of the building such as public restrooms, parking lots, elevators and building security. This fee can either have a fixed cost or can be increased annually. This amount, typically priced per square foot is only included in “Gross” leases, so be sure to ask what type of lease it is before you finish calculating your price per square foot cost.
So, you’re paying your rent and paying for all the common spaces. Guess what else you will be charged for? It is likely that you will also be paying taxes on the commercial property. This amount if pro-rated based on the square footage of the space you lease.
Sometime water, electric, and trash fees will be included in your lease and these fees should also be pro-rated based on the square footage of your office space. In addition to that, you will also have to pay for phone and internet service.
Liability or Property Insurance
Oftentimes the lessee will be required to pay for liability insurance with the lessor named as the additional insured. This insurance covers both the business owner and the landlord in the case of a lawsuit.
Not all office spaces come with furniture included and office furniture is far from cheap. If you have employees, this cost can rack up at a rapid pace. Asking the landlord if any furniture is available or if they have a turnkey office space that includes furniture could bring costs down significantly.
Small business owners typically don’t have a lot of money to be throwing around while they figure out if a commercial office space will work for their business. Knowing the hidden costs upfront can help tremendously when trying to make your decision to move your business out of the home. A coworking space is a great option for those looking to work outside the office, but bundle all the costs together for a monthly fee.