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It's also an important offset against the cost of moving. Obviously norms in different places will vary. We have not moved a lot as a business, but when we ha
by bruce511 3y ago
It's also an important offset against the cost of moving.
Obviously norms in different places will vary.
We have not moved a lot as a business, but when we have it's been -expensive-. Leaving aside the cost of actual movers (reasonably low) it costs money to prepare a new office for us.
Granted, we place a premium on employee comfort, so we spend a bit on kitchens etc, but also networking, furniture, the offices themselves and so on.
Then there's down-time for the move itself (packing, moving, unpacking.)
And "rent overlap". Once construction starts we're effectively renting 2 offices, the old one and the new one. In cases where serious work was done this can span 2 to 3 months.
So we've always negotiated "rent free" starter months. This mitigates (some of) the extra expenses incurred. In some cases this translates as discounts for the first year or whatever.
- wrs 3y agoSpeaking of construction, another thing that might be surprising is the “tenant improvement allowance”. If your lease is long enough (at least 5-7 years), it’s often expected that the landlord will pay to hire an architect, rip out whatever interior the previous tenant had, and build out the interior to your specs. (Up to some limit, which is the “allowance”). But again, that isn’t counted as a rent discount. In the other direction, there’s the whole area of “net” rent (and “triple-net” rent), and the bizarre calculation for shared spaces that makes “square foot” a semi-imaginary unit.