What the rent of office spaces is made up of
The most important factor of the rental rate of a office space is its location. In addition to the location and number of square metres, companies must pay for various services, power and property maintenance services.
The prices per square metre of office spaces mostly depend on the location and the average rental rate in the area. Premises located in growth centres with good public transport connections are in high demand and, as a result, their rents are higher.
The tenant of the office space is not only leasing square metres. The rent always includes a comprehensive selection of services such as power supply and property maintenance. The maintenance expenses of the office space comprise the costs of these services, and the majority of them are included in the total rent paid by the customer.
Maintenance expenses typically comprise approximately 20–35% of the rent. In the Helsinki metropolitan area, such expenses are higher than in other regions of Finland. The property maintenance costs of office spaces have increased significantly in recent years, but there have been no considerable changes in rental rates. Rents have increased only in the Helsinki city centre.
Control the expenses of an office space with energy-efficient solutions
The majority of maintenance costs of office spaces is made up of the property tax and heating and electricity costs. The first two are usually included in the rent. Tenants pay the electricity costs according to the actual consumption on their premises.
Advanced technological solutions and increased awareness of climate change have made property owners to invest more in the sustainability of their properties. At Sponda, we are always looking to improve the energy efficiency and to reduce the carbon footprint of our properties. Naturally, this results in lower electricity and heating costs and savings created to the tenant.
At Sponda, we also monitor how our properties use energy and develop our operations accordingly. For example, we have started using more efficient and intelligent heating, ventilation and electricity solutions to conserve energy and the environment. The lighting systems of several of our properties are sensor-based and automatically adjusted according to the amount of daylight.
Centralising additional services pays off when leasing office spaces
The maintenance costs of office spaces include the property maintenance and cleaning services of common areas, which are included in the rent. Other property services, such as lobby services, are usually invoiced separately. In addition, office spaces may contain shared conference rooms with an hourly rate.
Tenants typically pay for the cleaning services of their leased premises according to their desired level of quality. Potential renovation costs are agreed on a case-by-case basis.
The costs of a potential renovation and any related interior design costs can be added to the rent, but the tenant may also pay them separately, if desired.
What benefits does a major partner offer?
- Extensive range of services and experience – easy to find suitable premises
- Smooth leasing process
- Energy efficient properties with lower rents
- Comprehensive services – the property owner is also responsible for customer accounts
- Option of investing in alterations wanted by the tenant
- Competitive additional services
- Free expert advice
- Relocation during the growth phase is easy
Example of the formation of rent
Average monthly gross rents in the office space market EUR per m²
Fourth quarter 2019
Higher gross rents in the Helsinki metropolitan area office premises market EUR per m² per month
Fourth quarter 2019
The general market prices are approximate. Actual prices are determined by a number of factors, such as the exact address (the price of an office space may significantly vary even on the same street depending on factors such as customer volumes), floor, the building’s year of construction and the quality level of the premises.
Annual changes to the property maintenance cost index in percentages by quarter year
Property maintenance costs increased by 1.4% last year. (Index number 100 in 2015).
Highest increase in electricity supply costs, 4.1%. Repair, waste management and administrative expenses increased by 2.1%, 1.6% and 1.8%, respectively. Water supply and sewage costs increased by 1.1% and heating costs increased by 0.6%.
Experts behind this article include Sponda Plc’s Account Managers and Regional Managers.