Be a boss: Knowing when to lease and when to go month-to-month

The search for the perfect office space is never easy. There are so many things to consider - location, square footage, what services are included, and what services aren’t.

Businesses ready for their own piece of turf are often most concerned with price, but Julian Clark, owner of BOSS Business Centres, suggests they consider what they’re getting for the cost.

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“Directly leasing from a commercial landlord generally ties you into a fixed and long term lease, I don't do fixed terms, I do month to month,” he says, explaining that a direct lease of $1,000 or so a month for three to five years is a huge commitment, especially for businesses that are starting out.

And there isn’t much allowance for growth or change during that time, locking tenants into a space that might not be right for them in a year or two, he adds.

While leasing direct might seem cheaper, that isn’t always the case, Julian says. Direct lease will cost less per square foot per year, but a business centre provides many services that would cost extra.

“You're not just getting an office in a business centre,” Julian explains. “You're getting the common area, which makes up a significant per cent of the total square footage of our space. You're getting a receptionist. You're getting high-speed, managed fibre optic Internet, that would cost you $1,000 a month. So this is tapping into the shared economy.”

Businesses have to consider staffing needs, décor, phone and Internet lines, and more when opening an office, he points out. That’s where business centres can help.

“You're not just renting the square footage in the office that you're renting,” Julian says. “You're getting all this other stuff.” BOSS Business Centres is located at 3292 Production Way in Burnaby. For more on what BOSS can offer prospective tenants, email or go to their website.

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