So if I'm looking for 3,000 sqft then it will cost...

60000/month?
60000/year?

What does the lease typically include (utilities, security)?

Sorry if this is an idiotic question that should be painfully obvious but help me out.

 

No, don't be - I've never known the answer to this, either. I'm looking forward to learning the answer.

 

You'll get lots of help on this because of the heavy Houston money. Two types of leases. Triple Net also known as NNN is cheaper than full service. In Houston $20 equals about $1.66 per square foot per month. That's much higher than Oregon but you have much more commerce there. So you need to ask if its NNN or full service.

 

Reason I'm asking is I'm renting office space from a family member. It's served it's purpose and I think it's time for me to move on.

FWIW...I'm reading this article.

http://www.entrepreneur.com/Your_Bus...289729,00.html

 

yeah, multiply($20 sq.ft) by the square footage you need then divide by 12 for your effective monthly rent. Triple net leases hold you responsible for your share of taxes, insurance and maintenance.

 

That's what my brain was surmising. Arena Towers looks like a decent building. Also there are some along Katy Frwy that will work.

 

If you look at Arena Towers ask if you can see the Penthouse. Original owner/builder had a real 70's bachelor pad (complete with mirrored ceilings, swimming pool) put on top. It was still intact when I saw it maybe 9 years ago.

 

You might want to consider working w/a good commercial real estate agent who can guide you through the morass of office space leasing. The landlord will pay the commission & you'll likely save some grief, money, time & leg work. I don't know your area & I don't profess to be a real estate expert, but you've got many issues to deal with, e.g., architectural & build out allowances, common area expenses, renewal terms, parking, the nitty gritty of the lease language, etc.

 

Agree with Dan, I have done it both ways and am currently looking at OS here in SoCal. Believe it not looking at $2.50-3.00. In my experience it is best to avoid triple net so as to avoid nasty surprises that you have little say in like for instance replacing the bldg AC system, or major increase in property taxes. Look at it this way over time prices tend to rise so it is best to lock in at today's rate especially in a renter' market. Even in a long term lease landlord will customarily ask for an annual CPI increase in the rent.

 

The Silicon Valley is especially hard hit right now with the demise of the Dot Coms, and the tough times in the chip industry. I just leased 2800 sq ft on a sub lease for a buddy in a Class A building in Mountain View. It is fully serviced with furniture, phone system, PCs, and a few printers. We got it for $1.50 sq ft.

It does appear that this market is starting to turn around. With leases this cheap, a lot of small companies are starting up and the market for less than 5000 sq ft is growing rapidly. There are however MANY offices buildings still vacant and probably will be for some time.

 

Thanks to you all. I'm going to take Dan's advice and work with a broker.