Yearly Archives: 2022

Factors determine the rental price of an office

Mina Boycheva 03/03/2022

Factors determine the office rental price

Are you looking for office space for rent? Then you probably want to know what is the rental price of the office space that you need. Although the market for office rent in Sofia is large, when a person starts looking for an office, he often cannot find the desired office, or in case he finds it, it turns out that it is much more expensive than the budget he has set.

The cost of office rentals can vary considerably within the city and even within a certain area. Therefore, in order to help you better understand the lease prices of offices for rent, below we have prepared a list of the main factors that determine the rental levels for offices in Sofia.

The rental price for an office depends on several main factors:

– location of the office

– type of building in which it is located

– Features of the office itself

– The floor on which it is located (only in some office buildings)

 

Location of the rental office:

In recent years, several major business districts/clusters have developed in Sofia, which are a preferred location for most companies.

For Class A office buildings, the highest rental levels are for office buildings in downtown Sofia, Tsarigradsko Shosse blvd. and Lozenets in the area next to Paradise Mall. At the last location are some of the newest and most modern class A office buildings in Sofia, built in the last few years. At these locations, the office rental prices are 12 – 16 Euro / sq.m without VAT.

The middle price range includes the offices located in Mladost 4, Todor Alexandrov Blvd., Iztok, Lozenets, outside the Paradise Mall area, as well as the office buildings in the areas around Bulgaria Blvd. Here the rents vary between 8 – 12 Euro / sq.m without VAT, with of course exceptions for the newest class A office buildings, where rents are higher.

There are also class A office buildings, which are located in different and slightly more distant from the center areas, where you can rent an office for less than 8 Euro / sq.m. These are areas such as Druzhba, Sofia Airport, Geo Milev, Student City (Studentski Grad) and others.

 

The type of building is the other factor that determines the amount of rent

Offices in Class A office buildings are usually rented at the highest price levels specific to the area. However, this higher rental price allows for the use of many additional extras/amenities that the building offers. Such extras are the representative common areas in the building with a 24/7 reception, conference halls, designated places for recreation such as a park environment or large panoramic terraces, restaurants, in some cases a commercial area, fitness, underground and outdoor parking and more.

The rents in class B office buildings are lower, and those in mixed-use buildings or in residential buildings are the lowest and in some places can reach 5-6 Euro / sq.m.

 

Features of the office itself and the floor on which the office is located

The rental price of some of the rental offices also depends on their specific characteristics. These can be the layout of the office, the presence / absence of a kitchenette, bathroom in the office, bevels, etc. The features of an office affect the rental price mostly for offices located in mixed-use buildings or in residential buildings.

The floor on which the office is located can also affect the office rental price in some cases, including large class A office buildings. In some of them, the rents for the offices located on the higher floors are 1-3 Euro / sq.m higher than those for the offices on the lower floors. Ground floor offices are also generally offered at lower prices.

 

If you still have doubts about the best choice for you, according to your budget, you can contact us for a free consultation at: 00359 885 908 811; 00359 888 137 222 or e-mail: [email protected]

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6 things to consider when looking to rent an office

Mina Boycheva 03/03/2022

6 things to consider when looking to rent an office

Choosing an ideal office for your business is not an easy task, because there are a lot of factors which you have to take into consideration.

Because of that, a good understanding of the market can significantly cut the time you spend searching for an office.

То help you find an office we made a list with basic factors you have to take into consideration when looking for an office space to rent.

 

 1) Budget 

Determining your budget is the first thing we advise you to do when searching to rent an office so that you don’t lose time and energy in worthless viewings. The office market in Sofia is large and varies in price so your budget is the defining point between which offices might be suitable for you and which are not.

The rental price is determine by factoring the following points:

–             The office location

–             The type of the building where the office is

–             The features of the office

–             The floor on which the office is ( only for part of the office buildings)

More about the factors that determine the rental price of the offices, you can read here Factors determine the rental price of an office

 

2) Location

Location is key when choosing an office space. The office should be easily accessible for both your employees and your customers (if they visit you often).

If your office is difficult to find or in an area with few transportation links, this can negatively affect finding new employees or retaining old ones, as well as your relationship with customers.

Very important for the location of the office is the existence of nearby dining areas, cafeterias, bank branches, parking spaces, public transport stops, etc.

If your company’s employees, as well as your customers, travel mainly by car, then it is better to choose an office with a location that is outside the most popular ones, but will provide you with easy accessibility and parking.

One of the most preferred areas in Sofia are those in the immediate vicinity of the metro, which provides fast movement, regardless of overground traffic. The proximity to the metro is extremely convenient, but it also brings with it higher rental levels for the offices around it.

 

3) Office size

The size of the office is the next thing you need to consider when looking for an office for rent. If your business is growing and you expect the number of your employees to increase, it is good to consider whether to take a slightly larger office that will meet your needs in 6-12 months or choose a larger office building that will be able to to provide you with a larger office for rent when needed. You can read more about how to determine the office space you need and what to consider at How much office space for rent do I need?

 

4) Amenities 

Some of the offices nowadays come with a wide range of additional amenities. Before you start your search, we recommend that you decide what amenities your employees need to have access to. Those can be places for rest, meeting and conference halls, restaurants, fitness, bicycle parking, outdoor green space, etc.

Keep in mind that the more additional extras that are offered in an office building, the higher the rental price of the offices in it will be.

 

5) Term of rental agreements for offices

There is a significant difference in the conditions for renting an office in the different types of buildings. Below we will describe the main differences to help you decide more easily what type of office building would be most suitable for your business depending on your plans and resources.

In class A office buildings, the term of the contracts varies between 3-5 years, and in most cases this period is unbreakable. If you are not ready to commit to such a long-term lease, we recommend that you look for an office in one of the other types of buildings (class B, mixed-use buildings or residential buildings), where the term of contracts varies between 1-3 years and many contracts are often with more flexible terms and conditions.

 

6) Additional costs and fees for renting an office

The Service charge (maintenance fee) as well as the security deposit are an integral part of the rental agreement for each office and are important to consider when determining your budget.

Service charge

In addition to the rent, in office buildings you have to pay a service charge, which is calculated based on the rental area. Usually for class A office buildings it varies between 2 Euro / sq.m – 3.5 Euro / sq.m without VAT, and for class B buildings it is between 0.8 Euro / sq.m – 2 Euro / sq.m without VAT. This fee is different for each building and is paid monthly, together with the rent for the office.

There is also a maintenance fee due for common parts in mixed-use buildings and residential buildings, but it is usually minimal and does not depend on the size of the office.

Deposit for the office rental agreement

In every rental agreement there is a security deposit that has to be paid by the tenant, which serves as a guarantee for the good maintenance of the office premise and the timely payment of the amounts due under the contract.

For Class A office buildings, this security deposit is usually equal to of the sum of 2 or 3 monthly rents plus the subsequent service charge fees. For Class B office and mixed-use buildings, the deposit is the sum for 1-2 months

 

At Sofia Offices we know how important it is to choose the right office space. Our team is available to help you find the perfect place for your business without wasting time in unnecessary surveys and market research. Are you ready to start your search? Contact us by e-mail: [email protected] or call us at 00359 888 137 222; 00359 885 908 811.

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