The current real estate market in the Phoenix Arizona Valley is making it more difficult for businesses to find an affordable office space to rent that will provide them everything they might need. More businesses are turning to the idea of building their own space. This way each given business can create the space that will truly work for their business. Gone are the days trying to create a space work for you with you can create the space that will be exactly what you want.
When breaking down the costs of an office space build verses renting, look at the following numbers. Office space can go from $8/sqft/year all the way up to $20 plus. There are times when you can find something that will work for you, but for most businesses you are having to do a large tenant improvement in order to get the space to work for your business. Tenant improvements can average around $35 per square foot. This has to get paid. So this either comes out of the tenant up front or it comes out of the tenant by raising their rent and or doing a longer term lease. A standard lease will be anywhere from 3-5 years for a space.