One of the things you need to consider when renting an office is the size. Gross and area Net. If you don't understand these two types of area, you might end up paying more for an office. Let's take a look. Galaxy Office understand the difference between area Gross and area Net in the article below.
How do GROSS area and NET area differ?
Gross area and net area are two concepts commonly used in commercial real estate leasing, especially when leasing office space. They are often used to determine the actual area you will use when leasing an office.
1. What is NET area?
Net area is the actual area you rent for your office to serve your work and profession. Specifically, it is calculated from the walls to the partitions or by floor area (if the business rents the entire floor). Sometimes, this area includes columns, windows, etc., but they do not significantly affect the actual area used by the business.
Net area is typically separated from common areas by glass doors or partitions. In fact, net area does not include common areas such as restrooms, lobbies, hallways, elevators, and staircases. Therefore, businesses do not have to pay rent for these common areas.
In other words, net area is the actual area used by tenants. This calculation method is commonly found in most Grade B and Grade C office buildings.
2. What is GROSS area?
Gross area is a method of calculating the area of leased office space, including the area used by tenants for work, plus the external area for common use, such as elevators, hallways, men's and women's restrooms, reception areas, staircases, and emergency exits. Simply put:
Gross area = Net area + a portion of the common area used jointly.
Gross area = Net area + a portion of the common area used jointly.
The difference between GROSS area and NET area:
The difference between gross and net area will directly affect the final cost you pay when renting an office space. In other words, with the Gross area calculation method, you will have to pay an additional 20-30% for the common area that is not within your office space. Therefore, most businesses prefer the Net area calculation method because it helps them avoid wasting their budget on common areas and public areas that, in reality, many other businesses are also using.
You can calculate the gross area by multiplying the net area by 1.2 or 1.4 (Note that each building will have a different calculation method).
Some businesses rent office space at affordable prices, prompting them to place deposits immediately. However, without careful research, the gross area calculation means that the amount businesses have to pay for the actual area used is no longer cheap.
Businesses should note that before signing a contract, they should thoroughly understand the rental price structure, related taxes and fees such as service fees and overtime fees, payment policies, deposits, as well as after-sales policies that tenants can take advantage of.
Is the office rental price calculated based on GROSS area or NET area?
When renting an office, you need to determine both the GROSS and NET area to fully understand the lease agreement and rental price. The rental price is usually calculated based on the NET area, but the GROSS area will determine the actual space you can use for your business. This is important so that you have a clear understanding of the actual price and how to use your office space.
Galaxy Office – A reputable and professional office consulting and leasing company in Ho Chi Minh City
The above are some insights into the types of office space Tenants need to pay full and detailed attention to the latest information from us – Galaxy Office.
Galaxy Office was born with the mission of bringing customers maximum benefit With minimal resources invested in the office leasing sector in Ho Chi Minh City. With flexibility in our approach and consistently high levels of expertise, we are always committed to delivering the best results for our clients.
We have over 10+ years of experience in the field of consulting, management, and office leasing. And with over 2500+ offices rental listings throughout Ho Chi Minh City, Galaxy Office Ensure that customers have the most suitable options for their actual needs.
If your company is looking to rent office space and wants to experience the best service at the most competitive rates available today, please contact us immediately. Galaxy Office via hotline: 0939.663.882. Our team is always on standby to support and respond to customer needs as quickly as possible. Because we know that every second saved brings another opportunity for businesses in the market.
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Contact information:
- Headquarters: 9th Floor, Diamond Plaza Building, 34 Le Duan Street, Ben Nghe Ward, District 1, Ho Chi Minh City.
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- 0939.663.882
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