If you are a small business owner who is looking to rent office space for your company in Cyprus, then read on. Your office space is of utmost importance, it will not only be the first impression for clients, but where your employees will spend their working day, so choose wisely! This article will cover what to budget for, how much space you will need, and how to negotiate the terms of your lease for your required office space.
1. Estimate Your Budget
Here are the primary factors to consider when estimating your rental budget:
Average monthly lease payment based on location
If the city you are looking at has many vacant office spaces for leasing, your potential for negotiating a cheaper rental is much higher. For example, Limassol has many newly built offices without having a specific financial district; however in Nicosia, office space in their downtown business area is scarce due to popularity, you should be prepared to pay more. Generally speaking, Limassol is more of an affluent area with higher rental prices, so do your research on which city to choose.
Length of your lease term
Generally speaking, the longer you need your lease term to be, the more negotiating power you have. This often means you can offer a reduced price on collective lease payments and other fees. However, if you are only looking for a one year lease agreement, you have very little bargaining power and may have to pay whatever is asked.
Building style: interior & external
If you are not renting the entire floor of a building, then whether you have an interior office (with no windows) or exterior office (with windows) will significantly affect the price. Where there is an interior office space option, it will be on average 20% cheaper than an exterior space in the same building. When renting an exterior space the quality of the view will also play a factor; although thanks to Cyprus’ vast coastline, a sea view is common from most high rise offices based in Larnaca or Limassol.
Common Area Maintenance charges
In most cases, there will be additional charges on top of your monthly rental payments. In the office space industry, you will see these being referred to as Common Area Maintenance Charges (also known as CAM).
CAM charges are designed to maintain the costs of the mutual areas of the building such as the entrance, lift, hallways etc. These will include:
- General building maintenance: cleaning, window washing, lift repairs etc.
- Property insurance may be applicable: ask the Landlord for quotation.
- Utilities: common water, electricity, heating, annual sewerage fees etc.
2. Calculate How Much Space You Require
Knowing how much space you will require can help narrow down your search for office space in Cyprus.
If you are planning on expanding your business in the short-term, thereby hiring new employees who will use this space, do not forget to factor this consideration into your potential space needs. Similarly, if you plan to downsize or hire in other locations, do not get a huge office space for obvious cost-saving reasons.
3. Shortlist 3 Quality Office Space Options
You do not want to limit yourself to one option from the get go. Alternatively, find 3 strong options that would be suitable for your company. This way you can compare them in terms of cost and what are getting for your money, in order to determine the best option financially.
The best way to find suitable properties is by hiring a local agent.
There is no substitute for local expertise; this is why Agents are still the most popular option for locating and renting office space in Cyprus. In fact, one mistake of commercial property leasing is trying to do it on your own. Hire an Agent; they have invaluable knowledge and connections that would take new Business Owners years to obtain.
A local agent will have years of in-depth knowledge of areas in Cyprus, and may even have previous experience with the landlord of the building you are trying to secure.
Contact Eltoma Property, we can provide you with an experienced Cyprus local agent.
4. Selecting The Office Space That Will be Best For Your Company
Once you have found and shortlisted a number of different options, you will go with your agent to visit each location to see what the space actually looks like. Definitely attend with key-decision makers in the company who will give you an honest, objective second opinion.
The 3 key considerations when selecting your office space are undoubtedly cost, size, and location.
- Where are the majority of your employees living? Will it be a long commute for them?
- Public transportation & parking: Is the office close to any bus routes? In Cyprus many people drive, so consider if the office is close to major motorways. Is there adequate parking within reasonable walking distance?
- Refreshments are a daily part of office life. Are there coffee shops, cafes and supermarkets within walking distance? This is also important for future client meetings, not just your employees’ daily comfort.
- Other businesses in building: are the companies you will be sharing a building with reputable? Perhaps if they have an identical line of business, this may cause a conflict of interest to arise, or even a potential partnership! Something to consider nonetheless.
5. Negotiate the Terms of Your Lease
Use a commercial office space experienced Lawyer wherever possible. Rental agreements are full of legal and technical jargon that you are going to want expert help in evaluating. Read the rental terms/contract carefully. It is important that you read through the rental agreement carefully. If there are parts you do not understand, pass them to your Agent or Lawyer for an explanation.
Are you looking to rent an office space in Cyprus? Contact us, we have Cyprus based Real Estate Agents that can give you sound, local advice.