Please contact See The Space TODAY for the most detailed advice to ensure your company's rights when renting an office!
1. What are the meaning of Gross and Net sizes in office leasing service?
When evaluating or leasing office space, always clarify whether the measurements refer to gross or net size. This understanding helps prevent misunderstandings, ensures fair negotiations, and allows tenants and investors to make informed decisions. By being aware of these differences, you can confidently navigate the commercial real estate market and optimize your office space utilization.
The below shows you clear difinition of the difference of Gross Area and Net area:
| Gross Area: | Net Area: | |
| Definition | Total building or floor area including common spaces | Private, usable office space reserved for tenant |
| Includes | Walls, corridors, elevators, common areas | Tenant designated space only |
| Purpose | Building value, total capacity | Tenant usable workspace, accurated fitouting calculation |
| Measurement | Total area | Interior, usable area |
2. How is the rental area measured?
In standard office buildings of class A, B, C, there are 3 methods of measuring the area as follows
- Measuring the clear area, inside the office;
- Measuring the center of the wall and the surrounding wall of the office;
- Measuring the outer edge of the wall and the surrounding wall of the office.
The method of measuring by clear area is 3 - 5% less than the measurement by the outer edge of the wall ( the construction area).
Pay attention to useless areas
These are dead corners, areas that cannot be used, or offices with not in a good shapes (not rectangular or square), offices with many columns leading to increased useless areas.
Re-measure the office area before signing the lease
The area provided by the buildings is not always accurate, making it neccessary to re-measure the area. While the difference in area may not significantly impact on a monthly basis, over the entire duration of the contract of typically 3 to 5 years, it is a significant number. To ensure accuracy, the leasee can refer to the actual dimensions in the CAD file. In case the leasee is not satisfied, they can request a re-measurement and agree on the area before signing the lease.
| Gross Area: | Net Area: | |
| Features: | The tenant pays a fixed monthly rent on the Gross area. | The tenant pays a fixed monthly rent on the net area. |
| Rents: | The rent looks more attractive | The rent and management fee are higher, as the landlord's already included the operational costs of the public area into the net size calculation |
| Responsibility: | The landlord is responsible for all property operating costs such as taxes, insurance, maintenance, and common expenses. | The landlord is responsible for all property operating costs such as taxes, insurance, maintenance, and common expenses. |
4. Tips when renting an office:
When looking to rent an office and surveying the rental space, you need to note a few things to do before renting an office as follows:
Choose according to your needs
- Clearly identify the needs of the business to choose the appropriate area, including:
- Number of employees, number of private rooms for senior management
- Common areas: reception, number of meeting rooms, pantry area, telephone room, lunch break area
- IT or serving room needs 24/24 air conditioning
- Other needs
- Costs related to area: in addition to the office rental price, you also need to consider other costs related to the area such as maintenance costs, cleaning costs, electricity and water costs, management costs, service costs... to have an overall view. Pay attention to the costs and make the most reasonable decision to rent an office for your business.
- Terms of the lease contract: Before signing an office lease contract, you need to carefully read and understand the terms of the contract to avoid risks arising during use. Terms to note include lease terms, rental price, payment terms, privacy policy, rights and responsibilities of the lessee and the lessor, and contract renewal conditions
- Legal conditions: Before renting an office, you need to carefully check the legal conditions related to the lease such as business license, business registration certificate, to avoid legal disputes and damage to the business.
See The Space is committed to supporting you as follows:
- Determine suitable vacancy
- Organize on-site surveys
- Negotiate the best rental price
- Support signing a lease
- Free 2D support
Contact SEE THE SPACE today to receive an accurate quote and more useful information
- Phone: 0768 999 647
- Email: leasing@seethespace.vn
- Website: seethespace.vn
See The Space always strives to help customers get the best rental price and rental conditions to ensure their rights during the negotiation process with the landlord
