Traditional corporate leases account for a major part of any organization’s overheads. But it’s not just the monthly cost businesses – especially growing ones – need to worry about. Getting your space set up and built out to suit your organizational needs can be a significant expense and one that can see new or small businesses quickly burning through their startup capital.
Here’s what to know about commercial construction build-out costs – and why leasing a move-in-ready coworking space can be a great way to keep that all-important cash in your pocket.
Build-Out Costs Can Cost a Pretty Penny
The cost of a commercial build-out can vary significantly depending on the state of the space, the age of the building, and your needs as a tenant. An old building might need an all-new telecommunications infrastructure to be workable for a tech startup. Depending on the building’s existing design, you might need to tear down walls, install new ones, or add special-purpose rooms like kitchens or meeting spaces. Lighting, signage, decor, HVAC, infrastructure, parking, and accessibility updates are all extras. Those costs typically land at about $65 per square foot for a standard build-out, with higher prices in high-demand areas or with high-end finishes (and raw material prices climbing day by day). And let’s face it – if you’re going to be wooing top-caliber clients, you need to put your best foot forward.
And while landlords will often step in to help cover capital improvements for a long-term tenant, those costs are absorbed into your lease. Depending on the terms of that lease, you may face escalation costs or even significant break-lease costs if you need to move before your lease officially ends.
A Commercial Build-Out Takes Time
A traditional lease with a build-out means that your building can be outfitted according to your specifications, but this comes with its own problems, namely time. Designing a space, pulling the appropriate permits, and sourcing the required materials can take upwards of a year – or more, depending on the scope and location of your building. Heritage areas or those in high-traffic hubs face additional restrictions and requirements around what can be approved and how the build-out can be completed.
And with contractors facing record-high demands and supply chains globally in disarray, it’s hard to land on an accurate timeline for your move-in date. The best rule of thumb? To assume everything will take longer than you hope. This can have a significant impact on your ability to plan, leaving your staff and clients in limbo until you finally get that green light.
Coworking Delivers Ready-Made Office Spaces
A traditional commercial build-out gives your organization control over your office space. But that control comes at a significant cost – and with a potentially highly variable timeline. Finding the right location, planning your build-out, getting approval from your landlord and the city, and finally completing the build-out itself can require resources that smaller businesses don’t necessarily have in spades.
In contrast, a coworking space such as District Offices takes the guesswork – and expense – out of office build-outs. Our spaces are strategically located in key areas in D.C., are appointed with high-quality fixtures, feature state-of-the-art telephony, and infrastructure, and come with all the added extras you need right off the bat. You can pick the type and amount of space you need, get your name on the door, and settle in to enjoy our top-notch facilities and amenities in days – not years. Plus, our flexible, on-demand working arrangements mean that you don’t have to worry about huge break-lease costs should you need to switch up locations or working arrangements in the future.
If you’re looking to slash your overheads and simplify your working arrangements, get in touch with the team at District Offices. We’ll get you set up and working in style asap – and help you keep your bottom line looking flush.