How expensive are offices?
What are the running costs when renting an office?
Renting office space can be expensive. In this article, we outline the main costs, such as rent, taxes, common charges and furnishing costs.
1. Rent
Rent is one of the biggest costs for office space, varying based on location, size and amenities. Prime city locations, close to transport links and customers, are generally more expensive. It is important to negotiate rental terms well, such as rent, lease duration or the possibility of subletting.
Brussels is the most expensive office location in Belgium, with rents of up to €400/m²/year in the European Leopold Quarter for the newest, most sustainable and best located office spaces. Regional cities are also seeing rising rents, but these are lower than Brussels. Almost all cities have recorded higher rents in the past two years, especially for new, sustainable offices. In Antwerp, rents are €200/m²/year, while Leuven (€195/m²/year) and Mechelen (€185/m²/year) have also reached higher rents. Ghent is somewhat cheaper with the most expensive rents at €175/m²/year.
Older or less well-located buildings are often a lot cheaper in rent.
Almost all cities have recorded higher rents in the past two years, especially for new, sustainable and well-located offices
2. Taxes
Taxes are a significant part of office costs. Property tax is determined by the surcharges of municipalities, provinces and regions, and levied on an estimate of the average annual net rental income. Furthermore, local and regional administrations may also levy taxes on office space or the number of parking spaces.
In Brussels, office taxes are particularly high, up to €80/m²/year in some municipalities. In the Flemish and Walloon municipalities just outside the Brussels-Capital Region, taxes can be 50 to 75% lower.
3. Common charges
Common charges cover the maintenance of the building, and in particular the common areas, such as the reception and lifts. This often includes cleaning, security, technical maintenance, parking management and waste processing. These costs are often passed on to the tenants via the lease. On average, common charges are between €35 and €70/m²/year.
4. Furnishing costs
The costs of furnishing an office space vary based on the design, the quality of the materials and the current condition of the space. In Belgium, furnishing costs are usually between €1,000/m² and €2,500/m². This includes the costs for wall division, furniture, furnishing and decoration, cabling, and the installation of IT and technical equipment.
In short, operating an office comes with significant costs. In addition to the expenses mentioned, businesses must also consider utility, insurance, and technology costs. Professional advice can help control or reduce these costs.
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