Our phone calls, face-to-face exchanges, and e-mail led us to hear a lot. Between false truths and true lies, clichés and received ideas, let us decipher together four accepted views on the rent of office space in Connaught place.
# 1 – “I do not understand why a 9m² office costs so much while I pay the same price for my 40m² apartment in the suburbs.”
The real estate housing markets and the real estate business are very different; it is not very easy to navigate. Especially when looking for offices for the first time. Taxation, legal and administrative procedures, fixed costs, etc. are more restrictive for the owner of a workspace. Also, a local business represents a more significant investment. Both regarding furniture (prices are up to 10 times higher than those for home appliances) and Internet providers for example (professional packages are systematically more expensive).
# 2 – “Your offices seem expensive. I saw a local three times cheaper and three times bigger in the agency.”
When looking for offices, you have to pay attention to several points before making an engaging decision. Especially if it’s the first time. Three main factors affect the price of an office: its geographical location; the services offered and the flexibility of the rental contract.
First, it’s easy to understand that a downtown office will cost more than an office in the middle of the countryside.
Then, a local rented naked will obviously be cheaper than an office equipped with furniture, internet connection, meeting room and so on.
Also, the flexible nature of a lease is of vital importance: the rent of a lease workspace with a commitment of 9 years (or lease 3/6/9) will be cheaper than its monthly rental. Just as it is more expensive to rent a hotel room than an apartment.
Finally, the trap to avoid is to rely only on the cost of a rental: a leasing office 3/6/9 may have low rent.
# 3 – “I open my business center, I put workstations in my box, we sell printers.”
Beware of vocabulary errors. If the service contract that binds you with the company(s) you are hosting is not regulated by the law, do not be mistaken: unlike a sharing approach for to reduce its costs, the provision of workspace for profit is a regulated activity.
Indeed, offering a third company to occupy part of your premises does not make you a business center, this status is reserved for companies whose business is the rental of equipped offices and the provision of services additional services (secretarial services, domiciliation, reception and postage of mail, commercial domiciliation, etc.).
If you want to make your office space in India available for professional use and make a profit, you will need to obtain an approval issued by the competent authorities.
# 4 – “The bigger it is, the better … I’m looking for a 100m² office … We’re two …”
When one starts one’s activity, and one looks for one’s first premises, it is easy to disperse.
Indeed, it is often considered the necessary area is taking into account the common areas, the kitchen, the relaxation area, etc. However, in the context of a flexible rental, we reason more in some positions or m² of office.