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Financial analysis

What are the financial aspects of office leasing?

There are several ways to compare the financial aspects of office leasing, including:

  • Gross effective rent per square foot
  • Gross stated rent per square foot
  • Gross and net rent per square foot
  • Total occupancy cost per employee

Further detail on these measurements is provided in the Frequently Asked Questions section.

Look beyond the square foot rate offered. Some office space is highly efficient, enabling you to accommodate your employees in less space. For example, you may require 5,000 square feet to accommodate your staff in one building while another may be able to house them comfortably in 4,000 square feet. In this instance, it does not make sense to compare the two options based on  their rate per square foot. It is more effective to use a cost per employee lease analysis model.

Lease conditions such as “make good” requirements can also impact the attractiveness of a particular option.

Download the full Office Leasing Guide

Office Leasing Guide

This step-by-step office leasing guide has been assembled to reflect Colliers International's knowledge of the leasing process....