Moody’s/REAL National Office Properties Index which measures annual transactional volume in the commercial real estate asset classes has reported a 4 percent increase in office prices in the second quarter 2009 compared with the first quarter 09.

How much money can I allocate to allocate for retail space for rent? Would it be more sensible to find a suite for lease or a shop for rent? What extras are needed to manage my organization?

The monthly cost of renting an office will vary in cost depending on location and your local market. Renting an equivalent office in our market would cost $1,500-$2,000 per month after paying rent, internet, phone lines, and utilities. If the lease is a triple net lease requiring you to pay property taxes, it can be even more costly. There is a huge demand for small business owners needing to lease a small commercial suite to conduct business or meet customers. Many small businesses can’t afford the overhead cost of leasing a larger office. Many businesses compliment a property management firm. Consider subleasing to a real estate attorney, sales agent who works with an investment group, insurance agent, mortgage broker, or contractor.

Take the time to honestly evaluate your choices and evaluate your personal and professional state of affairs before making a down payment on a piece of retail space for rent for your organization.

If you partner and sublease with a small business owner, consider sharing employee costs. You may be able to cross train a receptionist or assistant to help you and your tenant partner. This can reduce your overhead cost, until your business grows enough to support the cost of a full time employee.

My business has grown, and I now have several employees. Leveraging my office condo helped me manage my overhead and make the transition from a home office to commercial space much easier. I still work at home, but my staff members answer calls, draft leases, and handle all maintenance and accounting, etc. This has provided the best balance for my business. Now, I can actually take a vacation. Before I had an office and a team of resources, it was impossible to take a vacation.

Main-stream, large corporate tenants which plan well and require a long-term, professional approach to lease management will be the first to face a toughening of the rent curve.

The Great Recession has been a blood bath for many tenants and owners with every major indicator in the basement. Of the various bits of improvement in the US economy, Moody’s/REAL National Office Properties Index increase of 4% is a strong leading economic indicator in the health of US commercial real estate and a road map for tenants to plan for a tighter market and increased costs.