How To Rent An Office

What is an office for lease?

Office for lease is a type of real estate rental for office use and is usually located inside buildings or office buildings. These buildings are built by investors who are private real estate corporations or state-owned enterprises and are used to rent to companies/enterprises as offices, representative offices or headquarters.…

In an office building, there will be many different businesses to rent, with a very diverse area, from 20m2 to thousands of square meters.

What is an office building?

Office buildings as mentioned above are buildings built for the purpose of leasing as offices, designed and equipped according to many different standards, for example, Grade A and Grade B offices will have more facilities, good location or beautiful design than Grade C office and cheap office. Each such office building will have a different number of offices for lease, divided to suit the size of each business.

Popular types of office for lease

Office building

This model is often applied to high-rise buildings / office buildings with a large scale, from 1000m2 or more. Office buildings are divided into 4 different standards including: Grade A, Grade B, Grade C and low cost.

Grade A office building:

Also known as luxury buildings, located in prime locations, frontage “golden land” of the city. As a Grade A building, the office for rent here is also certain. Certainly equipped with facilities, meeting international standards, designed by a team of quality contractors, reputable investors and professional management units… Currently, this type of office is lacking supply, the rental price can be up to 80 USD/m2.

Grade B office building:

Compared to Grade A, Grade B office buildings for lease can still be located in central locations but at a more moderate price. This is the preferred type of office and has more supply than Grade A.

Grade C office building:

Grade C office buildings ranked in order will stand above cheap offices and rank after Grade A and Grade B offices, so the evaluation standard is somewhat lower. However, Grade C offices are very suitable for newly established businesses that want to save costs. Besides, Grade C offices are often located in areas farther from the center but also have a diverse number, easy for tenants to choose.

Cheap office building:

Having the cheapest rental fee in all office standards is cheap office. Basically, the form of cheap office rental will help business owners save maximum costs while still ensuring a suitable working location. In particular, this is the office standard that is very popular with start-ups and small businesses.

Advantages of renting offices inside buildings

In general, with this type of traditional office rental, businesses will receive more benefits than other types of offices such as:

  • Suitable for brand promotion for businesses, a place to welcome customers and partners in a formal and professional manner.
  • There are full facilities, reception, lounge, … bring the best experience for businesses renting offices.
  • Enterprises can decorate their own office furniture at will to increase brand consistency.

Disadvantages of renting an office in a building

The cost of the premises is high, in addition to paying VAT, maintenance costs, parking, overtime fees, etc., business owners must consider choosing a suitable location, area, etc. with financial capacity and number of employees in the company.

Types of offices – Office buildings are the most popular office rental model

Office apartment – ​​Officetel

Officetel is one of the types office for rent was born in Vietnam in recent years. This term is a combination of Office and Hotel. This is an apartment with the function of both living and office, with an area of ​​​​30m2 – 50m2 or more.

Office apartments are suitable for small companies, the number of employees is limited from 4 to 10 people. Besides, Officetel are also allowed to act as representative offices of foreign companies that want to set up their headquarters in Vietnam.

Advantage Officetel’s main office compared to other types of offices is located in a well-planned apartment complex with full internal and external utilities, synchronous infrastructure, and civilized residents. Officetel is also cheaper than office buildings, has a separate entrance and elevator lobby, etc. However, according to the current law, apartment projects built for the purpose of living cannot be leased as offices.

Only mixed-use apartments with integrated offices, commercial centers, etc. have Officetel. Therefore, if you want to rent an office apartment, you need to carefully consider the law.

A whole house/ Shophouse as an office

Some businesses want offices to be located on quiet internal roads, in alleys that are easily accessible by car. Therefore, the form of renting a whole house to make an office or a commercial townhouse is the most suitable choice.

The advantages of renting a whole house as an office compared to other types of offices can be mentioned as:

  • As a ground-floor house, it is convenient for moving, not crowded, waiting for the elevator.
  • The area is larger than the office in the building, suitable for businesses with a large number of employees.
  • The departments are clearly divided – according to each room of a house, there is a living and living area.
  • The price is lower than the office in the building.
  • Company signboard, registered business address.
  • Can repair and renovate the interior at will (need to agree with the lessor in advance).
  • Operate according to the time that the business wants, without being dependent on the shared office building.

Shared office / Coworking space – Coworking Space

Co-working Space is a shared office model that has exploded in popularity in recent years. As one of the most popular office types, this office creates a co-working space for everyone, from many different companies. Normally, Co-working Space will be equipped with shared utilities such as fax machines, printers, etc., for a fee or free of charge depending on the rental package.

Usually new companies, only 1-3 people or individuals just starting out will love this type of office rental.

Shared office or Coworking Space is suitable for:

  • Freelancers.
  • Small and Medium Enterprises (SMEs) or startups.
  • Large companies and corporations.
  • Despite the great advantage of helping businesses save operating costs as well as flexibly move, the common management model.
  • However, the Coworking Space office also exists a great risk when there is no private space, it is easy to reveal business secrets and have information stolen through the network. Therefore, you also need to consider carefully when you want to choose to rent a Coworking Space office.

A virtual office

Virtual office is a form of representative office leasing in which transaction information will be transferred to the head office. Virtual office allows users to own facilities like a real office such as: reception, business registration address, telephone, fax number, reception room, etc.

This type of office is suitable for newly established businesses that do not have a lot of costs in renting an office or companies with few people working from home, or companies with workplaces in unregistered places for an office. More specifically, this type of office is integrated in office buildings and has a team to operate and solve arising problems. That’s why virtual offices become familiar to newly formed companies or project groups.

Office rental experience

Location

An ideal office often has to converge factors such as cleanliness, adequate lighting, beautiful landscape and convenient streets for traffic. The office building needs to have a location suitable to the nature of the company’s business activities, in order to create effective advertising and brand development.

Note

For example, the office of a company specializing in fashion, shopping, entertainment … should choose a crowded area with many residents. On the contrary, if the company is inclined towards education, culture, fine arts, etc., it should choose an area with wide streets, quiet residential areas, many landscapes such as rivers and lakes, green campus…

In addition, according to feng shui, the office location should avoid the front / back of the market, the garbage dump, stagnant water ponds … Because these areas are easy to generate unclean gas, making it difficult for the company to succeed in reputation. reputation and business performance.

Acreage

Renting an office not only satisfies the needs of the company’s scale and direction at the moment, but also needs to consider the development trend and scale of expansion in the future. Therefore, it is advisable to find an office space that meets the requirements of working space for the company for at least the next 2 years. Normally, renting an officetel or an apartment to work is only suitable for small companies, startups and few members. As for companies with a size of about 20 people or more, they should choose to rent offices in buildings.

Financial considerations

Not only office rental, for renting a whole house, renting shops, rooms or any other type of real estate, the monthly rental price is not all, there are many other costs. These costs serve essential needs, from the most basic level, so sometimes businesses pay little attention. However, if these revenues are unreasonable and prolonged, it will affect the business’s finances significantly.

Therefore, do not ignore even an expense that you think is “not worth it”. Other expenses that businesses need to pay attention to:

  • Service charge
  • Electricity bill for air conditioning, electricity consumption at the office
  • Parking fee for cars and motorbikes
  • Overtime cost
  • Tax

In addition, if the contract is negotiated in a foreign currency, the enterprise must pay an additional cost of exchange rate difference each month, this amount is not much per month, but calculated for 1 year, it is also an amount of interest.

NOTE

Expenses to prepare to rent an office include: 2 months deposit, 1 month rent (if paid monthly), transportation money from the old office, money to buy more necessary items for the new office and interior design and construction fee (if necessary to redesign the interior).

Utilities of the building / area around the office for rent

Local amenities:

The electrical system is safe, ensuring sufficient power supply, is the current number of bulbs sufficient to provide light for your business, or do you need to install more electricity for the water purifier, kitchen area or more working area?

In addition is the air conditioning system available? Is it a separate type of air conditioner or ceiling air conditioner? With shophouses or private houses, you want to divide the working rooms, is the number of air conditioners enough?

Next is the camera system, you need to consider adding or if available, ask the landlord to log in and use.

Parking area also needs to be considered, some central buildings have very tight parking spaces, often overcrowded and staff have to wait a long time for motobikes to enter and exit.

Out-of-town facilities

Consider whether the surrounding environment is clean and hygienic, not near rivers and lakes with bad odors, not near garbage dumps or narrow, poor quality access roads. Find out if the road to the office is flooded during the rainy season or at high tide…

In addition, the lessee also needs to pay attention to the rules and working hours of the lessor. If the business rents a villa or a private house, this problem is completely comfortable. However, if it is a rental building that is only allowed to work during office hours from Monday to Saturday, when the company has overtime or works on Sunday, it is necessary to discuss clearly with the building manager.

Key takeaways

To assess the “full” value of the office you want to rent, businesses need to pay attention to the following factors:

  • Traffic around the area, entrance to the building where the office is located.
  • Architectural image of the outside of the building
  • Office design, architectural form, spatial layout of the area inside the building.
  • Number and composition of tenants in the same building.
  • Reception service in the lobby
  • Utilities system

Employees are one of the most important factors

Renting an office is just based on the will of the business owner?

Are not! An ideal office is to create a comfortable, suitable workplace for employees. The experience of renting an office shows that caring for employees is an important foundation for having the ideal workplace for all. They are the ones who directly create revenue, profit and even the value and image of the business. The way businesses treat will determine the performance and commitment of employees – an important factor for sustainable development.

Note

  • Is the distance from the office to the employee’s residence too far? Is transportation convenient enough in case of bad weather?
  • Does the workspace create mental comfort for employees? Issues such as noise, privacy are guaranteed? Is the interior comfortable enough for both work and rest?
  • Does the connection between departments facilitate the exchange of work? Is the area and location of each room suitable for the working style of each department?
  • How is the food and entertainment for employees, in terms of both quality and price, and the distance of access?

This requires businesses to have an overview of both the office and the surrounding area. These seemingly small details when combined create a solid foundation.

Sign an office lease contract

When signing an office lease contract, it is necessary to carefully consider terms such as the deposit amount, the rental rate, whether the rent will increase periodically, if so, to what extent, the responsibility for repairing equipment such as: Air conditioner, which side does the glass door belong to, how long does the lease term last, what is the compensation if either party terminates the office lease contract ahead of time…

You should have enough time to review the lease contract before making a deposit. Deposit is a legal institution when it comes to ensuring contracts for the parties, but it is also a place with many potential risks. Do not rush to put money down when other legal issues are not guaranteed. This haste can leave tenants in a weaker position to negotiate and negotiate terms and prices. It is best to ask the building investor to draft a contract and negotiate all costs, when the agreement is complete, proceed with the deposit.

Cooperative design and construction units are available

The refurbishment and redecoration of the office is something that must be done after renting an office, even if it is only a small change. Having a cooperation unit available helps businesses save time and costs even, they can give advice in the process of choosing an office, better support tenants.

NOTE

Normally, buildings have a free 30-day rental policy for tenants to complete the interior but still charge a service fee.

Frequently asked questions

Where to find office for rent?

After having a list of necessary criteria to find a new office, you need to look at reputable websites, specializing in leasing offices, premises or villas. Then work with many realtors and visit homes to find the right place. Do not be afraid to work with a broker, because finding an office to rent is not easy for you to find on your own.

How long is the tenancy agreement?

How long you rent the house for, that depends on your company. However, landlords typically rent out their homes for 3, 5, or 10 years. Of course, the rental price will be updated every year depending on the terms of the agreement between the two parties.

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