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Looking for Office Space in Philadelphia?

Find Office Space in Philadelphia

Locating commercial real estate available and choosing an office space that best fits your company’s needs can be an important and daunting task. A major expenditure of this type should not be rushed, and making a final decision takes comprehensive research and patience. You may choose to search for properties on your own, either in person or using the internet, or you can partner with a company like GM Holdings, LLC to help you through the process of finding your perfect office space in Philadelphia.

Determining Your Needs

Businesses each have their own unique needs to maximize productivity, which their office space will need to accommodate. The first step to buying or leasing a new office space is figuring out exactly what your company needs most. Not every company can utilize a space like the Sterling Paper Factory on Castor Ave, a massive 200,000 sq ft renovation project, but some larger companies may require significant square footage like this to conduct regular operations. Create a checklist of “must-have” features for your ideal office space, such as your budget, estimated square foot per employee, optimal location, accessibility to target customers, and workplace features like kitchens, conference rooms, loading docks, or green spaces. Remember to account for the future growth of your company when determining how much space you require to make sure that you don’t need to relocate as your business expands. If you find a place that satisfies all requirements but needs one or more of these workplace features, GM Holdings will work with you to develop custom build-outs to make the property your own.

Conducting the Search

Patience is the key to finding the best office space for you. The current commercial real estate industry is growing in Philadelphia, as a major tax abatement aims to stimulate and expand the office space market. Prices will be competitive, so leasers have the power to be selective. Ensure that you are looking at properties in multiple areas at multiple price points to develop an idea of which spaces will best fit your company’s needs. For example, if your company was looking for a 3,000 sq ft office, you would be inundated with options online and from real estate brokers. You could choose a custom-built space in a new office complex on Fox Street in Northeast Philly, as it offers competitive features and location. However, you could determine that an established updated warehouse of similar size in Northwest Philadelphia would best meet the needs you outlined, prioritizing price and proximity to I-95. Comparative research and a solid understanding of both what you need and what you can afford will lead you to the prime location for your new office. 

Choosing an Office Space

Before you can make your final decision, you’ll need to review and negotiate your lease. First, understand the three types of leases for commercial office spaces: Full Service, Net, and Modified Gross. 

  1. Under a full-service lease, the landlord is responsible for all expenses associated with the property, including taxes, insurance, maintenance, and any other services required for upkeep. 
  2. Net leases occur at three levels, dubbed net, double net, and triple net (NNN) respectively. Net leases require tenants to pay for property taxes in addition to monthly rent, while double net leases include both taxes and insurance. Triple net leases leave tenants responsible for tax, insurance, and maintenance, but often feature a lower rent charge to account for expected costs, evident in properties like this. This type of lease allows for the greatest tenant autonomy over the property. 
  3. Modified gross leases add a portion of monthly property tax, insurance, and maintenance costs to the tenant’s rent at a fixed rate, dividing the financial responsibility between the owner and tenants with no risk of hidden expenses or changing rates.

Once the type of lease is determined and monthly expenses are reviewed, you must negotiate the base rent, length of the lease, terms of use, reasons for termination, and future changes to the contract. By discussing and reviewing specifics about these items in your lease contract, you ensure clarity moving forward. 

Regardless of how you find it, new office space is a major investment for any business. It is sure to take time and effort to locate and negotiate a property perfect for your organization, and if you choose to enlist the help of a real estate management company like GM Holdings, LLC, we can ensure that we’ll be with you every step of the way to make sure you get the best deal on your dream office. 

Posted by: gmhm on November 25, 2019
Posted in: Uncategorized