Class A, Class B, etc. [was: Re: Co-Working In Los Angeles]
Erica Douglass
> We got our space for 1.10psf, but most places in SF are going for 2-3.00psf.
> I think ours is pretty class a. ;)
Actually, Class A and Class B have definitions:
http://en.wikipedia.org/wiki/Class_A_office_space
This isn't meant to be a judgment call about how nice your space is
(you guys have fixed up that space a lot, and it looks good); it's a
designation mainly used to figure out rent prices. Class C is what you
are in and what Simpli was in previously. You're paying $1.10 triple
net, right? Class C is almost always rented out triple net. The space
Simpli was in until last week was very similar to Citizen Space -- one
big long room with a wooden walled-off office at the end. We rented
for $1.26 NNN and I know the landlord was considering renting it out
for as low as $1 NNN after we left.
For those of you who aren't familiar with office real estate
terminology, the designation "NNN" or "triple net" (usually spelled
NNN and verbally pronounced "triple net") means you are responsible
for all charges. If the toilet or air conditioner breaks (both
examples that actually happened to us when we were in the old space at
52 S. 1st St.), you as the tenant are responsible for fixing them. NNN
is usually used for small office spaces that are class C buildings
without an onsite property manager. The office spaces can look pretty
nice if you take the time to fix them up, but there also isn't
anything except a door (badge entry and doorbell in our case) guarding
you from the street. Class C spaces also typically are big open floor
plans that don't have offices, and the rent price doesn't include
electricity.
We moved to 95 S. Market St., which is a Class B office space. We are
now paying $1.55sq.ft. full-service. The difference: 6 parking spaces
are included. Electricity, heat, and A/C are included in the price.
New carpet, paint and baseboard were included. The bathrooms come
fully stocked and are re-stocked every day. The price includes
janitorial service 5 days a week. If anything breaks, we call the
property manager and they fix it (even light bulbs.) The building has
24x7 physical security and its own parking garage where our guests can
park. Our office space includes 8 distinct office spaces (it's in the
corner of the building), each with windows both to the outside and
inside. Class A office space, which we actually looked at, was running
1.75x what we were paying per square foot. The buildings as a whole
were a lot nicer -- and looked classier -- but we couldn't justify the
price increase.
We will be offering a coworking space as soon as we get high-speed
Internet access in our new office (we're arranging for Internet access
that's a lot faster than DSL) -- there's actually a 2-workstation
office we can set up for it.
> We probably spent about $5000 all in all
> on office furniture/supplies in the end (including a leather sofa, 10 desks,
> 50+ chairs, several bookcases, etc) and had a few things donated.
IKEA is fine for most normal office use (and believe me, I have
nothing against IKEA if you're on a budget...our whole office is full
of it, and we got most of it for pennies on the dollar since we
actually picked an entire office full of furniture up in a bankruptcy
auction for $1500). However, for a true "rentable" space, I'd want
something more durable.
> We are able to offer all of the fax, printer, janitor (no security guard,
> but a secure door), internet access and a really cool space for $350/month
> and that is considered high in SF.
I don't consider that high, actually. I think it's a good deal for the
space you are in. But if you were actually doing this as a business,
you'd want to charge more. Since you only need to fill a few spaces,
and you already have the furniture, and you make enough money from
your business to cover the rent, that's profitable for you...but there
are rentable office concepts that charge twice what you guys do in SF
and are making plenty of profit. There is room for options across the
board.
-Erica
David Doolin
all this up. I am still in my first year of going it
completely on my own, so your information is
timely and relevant at least to me.
[]
Tara Hunt
Sincerely,
Tara
-----------------------
tara 'miss rogue' hunt
agent provocateur
Citizen Agency ( www.citizenagency.com)
blog: www.horsepigcow.com
phone: 415-694-1951
fax: 415-727-5335
David Weekly
full-service (all expenses included) corner office in a complex by the
Tanforan Mall (@ 380 & El Camino in San Bruno). There is an onsite
property manager and the facility is a Class C, but the parking is
near-infinite and there are plenty of good places to eat nearby. :)
When considering a new place to rent out, I'd strongly advise checking
out places similar to San Bruno - ones that are easy to get to and
well-situated but that are not "trendy" like downtown Palo Alto,
Castro St in Mountain View, or South Park in SF. We've been quite
happy here.
Generally speaking, for a one-year lease, anything non-ghetto under
$1.50/sf is an incredible deal. Anything over $2.50/sf and you're
probably a little too glitzy. One place we looked offered us the
*mailroom* (no windows!) for $7/sf. We high-tailed it out of there in
a hurry. Beware "startup parks" and the like - they offer very little
value-add for a wildly huge markup.
-D