The most important question before renting an office should be: How much does the office cost? It seems simple, but many factors are often overlooked. Even though the base rent makes up the lion's share, it is only one component of many. There are also additional costs such as utilities, VAT, insurance, office equipment, moving, cleaning, electricity, telephone, and internet, etc. Below, we will discuss the individual cost items in more detail.
The most important factor is the basic rent. This is the amount paid to the landlord for the use of the space. The basic rent is based on the local market rate, which in Cologne is currently an average rent of €17/m². Accordingly, the basic rent varies depending on the location, size, and quality of the space. In suburban areas, the rent can be around €10/m², but in the city center it can quickly exceed €30/m². Features such as elevators, kitchenettes, air conditioning, cabling, glass walls, and high-quality flooring often increase the price.
The second most important factor is the additional costs. These include heating costs, water consumption, cleaning costs, garbage disposal, property tax, building insurance, and maintenance costs. They account for up to 20% of the total rental costs. Therefore, money can be saved here by acting consciously. This is particularly important in light of the current rise in energy prices. In addition to ancillary costs, tenants usually pay separately for the electricity they use for lighting, cooling, etc. Currently, the average ancillary costs excluding electricity in Cologne are around €3.50/m².
A frequently overlooked cost factor is value added tax. This 19% tax is payable on almost all commercial properties, but is often not taken into account in the initial calculation. This is important for companies that are not entitled to deduct input tax. These include doctors, banks, insurance companies, associations, training companies, etc.
Furthermore, telephone and internet services must be set up. In addition to the ancillary costs, this also incurs monthly fees.
Furniture is crucial to the feel-good factor of your new office space. If you are unable to take over or bring with you a complete set of furnishings, this can be a costly expense. It is advisable to plan the layout in advance. When furnishing the space, the costs for acoustics should not be neglected and should be planned for from the outset.
A deposit is always required. As a rule, you can expect to pay three months' net rent, although there are exceptions.
Last but not least, depending on the location of the property, you should rent parking spaces at the new location. This seemingly small amount should not be overlooked either. Parking space prices in downtown Cologne can vary between €100 and €250 per space.
With the help of this overview, you should now be able to keep track of all the cost factors involved in finding an office. If you have any further questions about the costs of an office, please do not hesitate to contact us.
