Need Office Space For Rent In Chennai? Here’s What You Should Know

 

Working in an office space is no more a straightforward, all-encompassing idea. In today's world, taking an office space on rent might imply a variety of things. Working from an executive suite, renting office space in a downtown business centre, subleasing office space or renting a portion from a coworking organization in your area are just a few of the many alternatives for workspaces.

 

Those in the early stages of a company's development, generally, look for a place small in size, less expensive, in a specific location, and more adaptable than their more established peers. Typically, this means choosing between coworking and finding a low-cost rental scenario, such as subleasing. Let's magnify and observe each of the possibilities to see which is ideal for your company. The sooner you decide, the sooner you get the chance to check out the DLF buildings in your area.

 

Indian Office Space Landscape

 

The workplace landscape is expected to alter substantially in the coming years as India embarks on the Startup India and Digital India themes. The Indian government is promoting entrepreneurship in small and medium-sized firms. As a result of these activities, a new genre of organisations is expected to emerge and workaround in this space. As in the developed world, the buzzwords of entrepreneurship and innovation are likely to spread from organisations to workplaces, with corporations and promoters seeking new and imaginative ways to grow their businesses.

 

Office space is observed to have been a secondary expense of knowledge-based business, after manpower and marketing. Lately, we all have observed this due to the Covid-19 pandemic.

 

Today, businessmen can choose from various alternatives to work out of coworking space, an office on lease or rented office space or their own purchased space.

Let us assist you in determining if you need an office space for lease in Chennai or you want to purchase one. Let’s read further to know which option is the best for you.

 

Owning an Office Space

 

A typical office that is a privately-owned space is used entirely by an organization's personnel. It has its own set of amenities and layout. Individual cubicles or private conference rooms may or may not be available in a traditional office setting. Herein, the owner is responsible for improving the work environment. It doesn't matter if you're looking for an internet connection, a coffee machine, or workplace furniture, as the owner of a traditional office, you must handle every area of the business, making each choice for yourself and your employees.

 

Renting or Leasing an Office Space

 

Any space leased purely for the purpose of an office or other administrative functions is referred to as an office lease.

 

The primary difference between a rent agreement and a lease is the duration of the arrangement. A rental arrangement is normally for a short amount of time (usually 30 days), but a lease agreement is for a longer period of time (commonly 12 months, though 6 and 18-month leases are also common). When a lease term expires, it is frequently renewed on a monthly basis.

 Factors That Will Help You Determine A Good Office Space?

 

1. Location

 

A desirable place today may become an unwelcome space tomorrow. Be certain that the place you select is not part of any commercial project development programme. At the same time, you must ensure that your company is accessible to customers and suppliers via multiple modes of transportation. A poorly connected organisation is more likely to die slowly. Water, electricity, and an Internet connection are all required in the area you choose. You can check the offices in the DLF buildings in Chennai as they are known to be well maintained with great location and all amenities.

 

The primary and the most crucial element to consider when searching for office space in Chennai is the location and mode of transportation. If you want to commute to and from work every morning, keep the distance and time for travel as short as possible. Additionally, you must be aware of the available parking space for your office. You don't want to be stranded every morning seeking a parking spot. If not, you must know how far is the nearest drop zone if you are using public transportation.

 

It's also critical to make sure the office space satisfies all of your clients' needs in case they need to meet with you. The location must be conveniently accessible to all of your stakeholders. In addition, you must check to see if your area is a disaster-prone space or not.

 

1. Amenities

 

It's important to remember that the office space comes with all of the amenities you'll need. Make sure the location you wish to join has all of the resources you'll need to get started quickly before you sign up for a long term arrangement. Make a list of everything you believe you'll need and go over it again before making a selection.

 

Commercial office space serves as both a workplace and a brand ambassador. As a consequence, you must be certain that your amenities are ideal for your requirements. Before you finance your workplace, you should look into things like parking, a lift, a water facility, power, and the internet. These services not only help your business run efficiently but also assist you to determine the property's market worth.

 

1. Human Interaction and Networking

 

An essential factor in leasing or renting an office space is the networking opportunities available to its employees. This is not only in terms of interacting with each other but employees from other organisations too. Employees tend to prosper personally as well as professionally in a space where they get to meet new people. The idea is to keep them happy as well as stimulate their brains enough to grasp new information every now and then. This is why it is essential to have a commonplace like a cafeteria or a food court around your office space for relationship building. If you are wanting to find such a space, you can look for a commercial office space for rent in the DLF Cyber City, Chennai.

 

Before you zero down on any space, be certain that you are happy about it. Once you know something is your space, know that it is not far from being yours.

 

1. Good Networks

 

Nothing can progress in today's world without a reliable internet connection. So, how can you expect yourself to run a productive business without a reliable internet connection?

 

You can't, in all honesty!

 

High-speed internet is essential for all businesses, freelancers, and remote workers.  So, before deciding on office space, make sure you're getting good networks in your area and the wifi works too. You need to be sure of the network towers around your office before you decide to zero down on one. Undeniably, DLF Manapakkam in Chennai runs on good networks.

 

1. Overall Cost

 

Any real estate venture involves a large sum of money, which necessitates meticulous planning. You must not begin with your research for the commercial property until you have determined your budget; the budget you have determines the type of property you will be able to purchase. It is crucial for the investor to calculate the amount of money he wants to invest along with other business operations. If you don't have enough money, you could lease the property with a sufficient down payment and pay the mortgage for the rest of the amount.

 

Furniture, electrical connections, equipment and internet connectivity are just a few of the aspects that determine the cost of office space. To be certain that you are getting an excellent deal, you must undertake extensive research. If you do decide to sign a long-term contract, make sure you are aware of all the hidden fees. When it comes to running a business, you want to make sure that your expenses are as low as possible. The last thing you want when starting a business is to have a responsibility hanging over your head at the end of the month. Keeping this factor in mind, you can go for a commercial space for lease.

 

1. Physical Condition

 

What was the use of this space previously and for what purpose was it used? This question will give you a general idea of the property's condition and the amount of work that needs to be done. It also aids in the finalisation of the budget based on the condition and required maintenance. In addition, this will also assist you in determining future resale value.

 

1. Flexibility

 

When looking at commercial properties, don't only consider your short-term needs; look for a place that can accommodate your long-term needs as well. Given that you will almost certainly want to develop your business in the coming years, pick a good property that can be quickly adjusted to meet your future needs.

 

1. The Market Rent

 

This is a more advanced notion in which an investor assesses the property's risk. You should evaluate the rents in the same neighbourhood as your selected location. If the price is higher or lower, you must determine what is causing the discrepancy. For example, if you have office towers in the same area with identical structures and amenities, but one is 10% more expensive, it makes absolutely no sense to go for the more expensive one. You'll merely end up paying more than the market price for an overvalued asset.

 

1. Future Opportunities

 

A business space should meet your needs in case of future development. Furthermore, if your business does not go well, you must be capable enough of selling the property and finding adequate purchasers. So before you come down to your final decision, be sure to know its future prospects. Getting office space for rent in Chennai is a good alternative keeping in mind this factor.

 

Purchase or Lease?

 

Several factors influence your decision to lease or buy a commercial space. While the type of property, its cost and location are the primary considerations, its financial health, the local economy, and future expansion plans should also be considered. For instance, taking an office space on lease is a good alternative for new businesses; however, owning office space is better for established businesses because it requires a long-term commitment to the site along with large capital investment.

 Your biggest financial investment will be determined by whether you want to lease or buy your office space. Each has advantages and disadvantages. Let's take a closer look at them.

 

Leasing an Office Space

 

Pros:

 

If your finances are still in shambles or you don't plan on staying in the same spot for an extended amount of time, renting is the perfect idea for you.

 

●     Because there is no downpayment, there is no initial investment. When you buy any space, you must cast aside a significant amount as a downpayment (often 10% to 30%). When you go for rent or lease, however, you simply need to put down a small deposit (often one month's rent) and a tiny brokerage fee in case you use the services of a broker. This permits you to invest your money toward more vital projects or company expansion.

 

●     There are procedures to deduct the amount invested from tax payments when you take a commercial space for lease.

 

●     All repair and maintenance expenses are the landlord's responsibility. However, it is contingent on how you work around the terms of the lease. A landlord may offer to pay for the office space's repairs and maintenance, depending on the circumstances. You'll be in charge of keeping a clean environment and maintaining all of the appropriate appliances. However, be certain that your contract specifies who is liable for what.

 

●     Leasing provides a possibility to rent a high-end space for a lower price. Buying a commercial property in a desirable location, however,  might be expensive.

 Cons:

 

●     When you sign a lease, you have less flexibility. You've agreed to stay in a location for the duration specified in the contract. That implies that if the cost of rent in your region falls abruptly, you would find yourself paying more than the market rates.

 

●     In case of a sudden change of plans, it becomes a challenge to move abruptly. In an emergency situation, the lease can turn out to be a hindrance in moving ahead. However, subletting is permitted by some landlords, which can help make your lease a little flexible. This, however, is subjective to your situation.

 

●     Breaking a lease might result in the loss of a deposit or possibly being responsible for the remainder of the rent. Check the lease agreements to see what the clauses are for early termination of the deed before you go ahead with office space for lease in Chennai.

 

Buying an Office Space

 

Pros:

 

If your condition is relevant to the following points, then you should consider buying the property.

 

●     In case you wish to restore or overhaul the property, you can do it as and when you want. This may become a hindrance when you are on a lease because for each and every small decision you want to make, you need to rely on the landlord’s permission. Ownership, thus, makes things easier.

 

●     A lease is more likely to save you money in the short term, however, purchasing a space certainly will save you money in the long run. This is because the landlord will try to strike a profitable deal off of your property in addition to preserving it.

 

●     For certain retail businesses, location is crucial, and you don't want to lose it due to an increase in rent. As a business owner, you can’t risk losing your space because your landlord wishes to utilise it for another purpose. However, this shall not be a cause of concern to you if you own the property.

 

●     In case your prospective office is in a location where land values are rising, you must consider purchasing the space so that you can strike a profitable deal from it in case you ever decide to resell it. In such a scenario, taking a commercial office space for rent won’t be such a good call. Also, for purchase purposes, you need great knowledge of the real estate business as you must forecast the next trend beforehand.

 

Cons:

 

https://www.shutterstock.com/image-illustration/shopping-cart-office-chair-3d-rendering-1897535098

●     You shall be responsible for all repairs and damages as the property owner. You would be responsible for all additional costs including, but not limited to, upkeep and property insurance, the interiors, furniture and structural faults.

 

●     Leasing or taking space on rent involves a limited amount of investment, buying space in all manner requires a significant amount of capital investment right at the start. In addition, you will also have to bear the cost of the initial down payment, costing about 20-30% of the cost of the property. This may not be your initial agenda before the business thrives.

 

●     It is also necessary to conduct a space analysis. You need to purchase an office large enough to accommodate your future team (yet to join in case of expansion). This is because you shall outgrow the space and must be in need of a bigger office, more due to which you'll have to either sell your current office or put it on lease. Either of the options is likely to consume your time and money.

 

In the end, whether to lease or purchase an office space is a matter of personal preference. While purchasing the property makes more sense if your company is big in size and manpower, and you also want to maximise your tax deductions. Whereas, leasing comes as a great alternative if you have a small business and require flexibility and cost-cutting, having a potential for growth. However, it’s time we reiterate the fact that if you want to take a commercial office space for rent or purchase it, it is entirely a matter of your personal choice.