Step by step
What steps are involved in renting an office?
- 1
Define your needs
1–3 days
Size, neighborhood, layout, must-haves. The clearer you are here, the faster everything moves.
- 2
Explore the market
1–2 weeks
Browse office listings on platforms like Tandem. The best inventory moves quickly. To make sure you don't miss out, set up a call with Tandem.
- 3
Tour offices
1–4 weeks
Typically 4–8 spaces in a first round to calibrate, then 3–4 shortlisted spaces with your decision-maker present.
- 4
Make an offer
1–2 weeks
A non-binding Letter of Intent (LOI) goes to the landlord. 2–3 rounds of back-and-forth on price, term, and improvements. If everyone is aligned, a lease gets drafted.
- 5
Sign & move in
1–2 weeks
Lawyers review the lease on both sides. You sign, pay first month + security deposit, and get keys. Tandem can help coordinate your office set up logistics.
Start earlier than you think.
Most teams underestimate the timeline. Even "taking a space as-is" takes 4–8 weeks from starting the search to move-in. If the landlord is building out the space for you, add more time.
Sizing your office
How do I know what size office I need?
Rules of thumb
- Engineering-heavy teams: Can work with slightly less — 120–140 sq ft per person — since they need fewer client-facing areas and conference rooms.
- Sales or client-facing teams: Budget 150–175 sq ft per person. Larger conference rooms and a dedicated board room for bigger meetings add to the footprint, along with nicer finishes throughout.
- Meeting room ratio: A good starting point: 1 meeting room per 6–8 people. If you expect to host clients, plan on a board room or larger meeting room — ideally with glass walls.
- Size for 12 months out: Use where you expect headcount to be in 12 months — not today. Switching offices early is expensive and disruptive. Most landlords price based on the space, not occupancy — you're paying for the square footage either way.
1,500 sq ft
Estimating 10 people in 12 months
- $5,625
- est. monthly (low)
- $12,500
- est. monthly (high)
- 2
- meeting rooms
- Based on 1 room per 6–8 people
Estimates vary based on geography and quality of space. Illustrative ranges. Actual pricing varies by neighborhood and building.
Understanding pricing
How is office space priced?
Price per square foot — how to read it
Landlords quote rent as a dollar amount per square foot per year. To convert to monthly cost: multiply sq ft × annual rate, then divide by 12.
1,500 × $72 = $108,000/year
$108,000 ÷ 12 = $9,000/month base rent
Typical price per square foot
New York City
$45–$100
per sq ft / year
San Francisco
$35–$90
per sq ft / year
Boston
$35–$80
per sq ft / year
Note: These are estimates which vary by neighborhood and building quality.
The three lease structures
Example: a 1,500 sq ft office at $72/sq ft/year ($9,000/mo base rent). Building operating expenses are often around $5/sq ft/year ($625/mo) — who pays depends on the lease type.
| Lease type | Description | What you pay on top of base rent |
|---|---|---|
| Modified gross | Landlord and tenant split operating costs. Year one is a flat rate; after that you pay your pro-rata share of OpEx increases above the base year. | Pro-rata OpEx increases above base year (from year two) |
| Industrial gross | Rent covers property taxes, insurance, and CAM. You pay utilities and janitorial separately. | Electricity, gas, water, and janitorial |
| Full service | One all-in rent — operating expenses, utilities, and building services included. | Nothing — all operating costs are included in base rent |
Always understand what type of lease you're signing
Generally you should know whether you're signing an industrial gross, modified gross, or full service lease — each structure affects what you'll actually pay month to month.
Lease length
How long are office leases?
Typical lease lengths
| Term length | How common | What to expect |
|---|---|---|
| 1–2 years | Less common | Fewer options available. Landlords are less interested in short terms — they want predictable cash flow, and lenders often require longer commitments. Most spaces are as-is, with little or no landlord work. Offices tend to be less polished. |
| 3–5 years | Market standardMost inventory here | The most common lease length. Widest selection of spaces and the best negotiating leverage. Landlords are willing to invest in buildouts, tenant improvements, and concessions. |
| 5+ years | Somewhat common | Unlocks maximum TI, free rent, and landlord concessions — but 3–5 years remains the standard for most deals. |
Listed terms are asking positions
A space listed at a 3-year minimum doesn't mean 3 years is the floor — it's where the landlord starts. Most landlords have flexibility depending on the tenant, the market, and how long the space has been vacant. Don't filter spaces out because of listed terms. Tour them and negotiate.
Building quality
What does building class mean?
| Class | Description |
|---|---|
| Class A | Trophy buildings in premium locations — doormen, amenity floors, high-end finishes. Built or renovated recently. Highest rents. |
| Class B | Well-maintained, functional buildings in good locations. Professional management without the trophy price tag. |
| Class C | Older, no-frills buildings with minimal amenities and basic finishes. Most flexible on terms and lowest cost. |
Most teams don't think about building class during their search. However, if you want a top-of-the-line office, you're likely looking at a Class A building. Class A buildings demand longer lease terms — typically 3–5+ years — given their premium nature. World Trade Center in New York, for example, requires seven.
The parties
Who are the parties in an office lease?
| Party | Side | Their incentive |
|---|---|---|
| Landlord | Landlord | Maximize rent and secure a reliable long-term tenant. |
| Landlord broker | Landlord | Same goal as the landlord — paid on commission when the space leases. |
| Tenant | Tenant | Best space at the lowest rent and most favorable terms. |
| Tenant rep broker | Tenant | Same goal as the tenant — free to you; paid by the landlord when the lease signs. |
The negotiation
What can you negotiate in an office lease?
Base rent
Always negotiable. The listed price is where the landlord starts, not where they need to end.
Term length
Listed minimums are asking positions. Landlords often have flexibility depending on the tenant and market.
Tenant improvements
Paint, carpet, layout changes, and build-outs can be covered by the landlord — especially on longer leases.
There are a bunch of other items you can negotiate too — furnishings, renewal options, and a whole host of other terms. If you're interested in negotiating a more complex lease, talk with someone at Tandem.
Work with Tandem
How does Tandem help you lease office space?
See the full market
Most great spaces never hit public listing sites. Tandem pulls inventory from broker networks and off-market relationships — so you are not browsing an incomplete picture.
Move faster
From first call to signed lease, most teams on Tandem get there in under 60 days. We coordinate tours, follow-ups, and negotiation so the process keeps moving.
Free expert support
Tandem is a licensed tenant rep brokerage. There is no cost to you — landlords pay when your lease signs. You get a dedicated team through search, tours, and signing.
Reference
What do office leasing terms mean?
| Term | Definition |
|---|---|
| Base year | In a modified gross lease, the year whose operating expense level is "included" in your rent. You pay any increases above that year's baseline. |
| CAM (Common Area Maintenance) | Your pro-rata share of costs to maintain shared building areas — lobbies, hallways, elevators, HVAC, landscaping. Often included in industrial gross and full service leases; passed through in modified gross. |
| Estoppel certificate | A document you may be asked to sign confirming the current status of your lease — that it's in force, rent is current, no disputes. Usually required if the building is being sold or refinanced. |
| Free rent | Months at the start of a lease where you don't pay rent (but typically still occupy the space). Common on longer leases in buildings with vacancy. |
| Full service | A lease where one quoted rent covers everything — operating expenses, utilities, and building services. The simplest structure to budget against. |
| Good Guy Guarantee | A personal guarantee that expires once you vacate the space and are current on rent. Limits your personal exposure — you can hand back the keys and walk away cleanly. Typically only found in New York City. |
| Holdover | When a tenant stays past their lease expiration without signing a new lease. Usually triggers a penalty rate (125–150% of normal rent) month-to-month. |
| Industrial gross | Rent is largely inclusive of building operating costs, but you typically pay electricity, gas, water, and janitorial separately. |
| Usable square feet | The actual interior space within your suite — where desks, meeting rooms, and your team work. |
| Rentable square feet | Usable square feet plus your pro-rata share of common areas (lobbies, hallways, elevators). You're billed on rentable — which is usually 10–20% larger than usable. |
| Load factor (loss factor) | The ratio of common area allocated to your suite. A 15% load factor means a 1,000 sq ft usable space is billed as 1,150 sq ft rentable. |
| LOI (Letter of Intent) | A non-binding document outlining proposed lease terms — rent, term, TI, move-in date. Submitted by your broker to the landlord as the opening offer. Not a lease. |
| Modified gross | The lease defines which operating costs each party covers. Year one is usually a flat rate (base year); in later years you pay a pro-rata share of OpEx increases above that baseline. |
| Operating expenses (OpEx) | The costs of running a building — taxes, insurance, utilities, maintenance — allocated between landlord and tenant depending on lease type. |
| Price per square foot (PSF) | Annual rent divided by the space's square footage. A $72 PSF space = $72 × sq ft / 12 months to get monthly cost. |
| Right of first refusal (ROFR) | The right to match an outside offer on adjacent space before the landlord leases it to someone else. Useful if you anticipate needing to expand. |
| Stepped rent | Rent that increases incrementally each year. E.g., $9,000/mo in Year 1, $9,270 in Year 2 (+3%). A way to make a deal pencil out for both sides. |
| Sublease | Renting from an existing tenant rather than directly from the landlord. Often shorter terms and furnished. Can be a good bridge option but requires landlord consent. |
| Tenant rep broker | A broker who represents the tenant (you), not the landlord. Free for tenants — paid by the landlord when the lease signs. Their job is to get you the best deal. |
| TI (Tenant Improvements) | Changes made to the space before you move in — painting, flooring, adding meeting rooms, reconfiguring layout. Negotiated in the lease; often paid by the landlord on longer terms. |
You don't have to figure this out alone
Start your search with Tandem
Free for tenants. Local experts in NYC, SF, and Boston. From first search to signed lease — usually under 60 days.