The Hidden Expenses Of Managing An Office

It is a significant milestone to sign a lease for a new office. You may have found the perfect space for your company. On the other hand, you might be expanding in new areas or opening regional offices. Either way, it causes us to celebrate.

Here's a list of things to look at if you don't know where to begin.

Security Deposit

A commercial lease requires an upfront payment, just like when you rent an apartment. A commercial lease also needs one. It is similar to the first and last month's rents plus the security deposit you would pay for a residential property. For younger companies with less credit history, landlords might request more than three months' rent.

Building Costs

Once you have signed the lease for your office space, it's time to make it your own. This means that you can customize the space to suit different employees' needs. For example, an engineering team may have a different layout than a sales team. You'll also want to incorporate design elements that reflect your company culture and brand, such as your signage in reception or brand colors in shared spaces. You will need to manage contractors, architects, engineers, engineers, and other vendors in order to achieve this.

The average cost of an office buildout in New York is $161.05 to $247.67, depending on the layout. A typical buildout in Phoenix costs between $166.18 and $143.56 per square foot. A full buildout can take six to twelve months, depending on how large the space is and how much customization you choose. Also, consider the extra cost of having your employees relocated during this time.

Office Management And Maintenance

You may feel that your work is complete once you have built your space. However, someone must maintain it. Your space must be safe, clean, and functional to keep your employees motivated and inspired.

PayScale estimates that the average salary for an office manager in the United States is $47,000. The average IT director's salary was $115,000. The average mail clerk income is $34,000 annually. A custodian is approximately $27,000 annually. Are you looking for a security guard for $31,000 per year?

This is a total of approximately $250,000 per year. That doesn't include benefits, supplies, or infrastructure (such as Wi-Fi and software, phones, and coffee) that each employee needs to do their job. This could increase the annual cost to $350,000. This number could be much higher depending on where you live.

Scaling Up Or Down

You know that change is constant, whether you are the CEO of a unicorn company or a senior leader at a Fortune 500 firm for 30 years. Businesses must adapt to keep up with technology's rapid evolution.

Reorganizations are inevitable. The growth and shrinking of teams will result in them merging. Companies will move into new markets and open new offices. Commercial leases do not account for this. Commercial office space leased in the United States can last for ten years or more. You'll be responsible for any changes you make to your office space, including paying large penalties if you break the lease or dealing with the hassle of managing tenants and sub-leasing.

Even one of these costs can have a huge impact on your company's finances and cash flow.