General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 9 years ago, 08/24/2015
What are pros and cons of having a call center as a tenant?
I am considering renting a 500 sq ft in a small office building (1 story, 7000 sq ft) to a call center company.
The rest of the building is occupied by real estate brokers, mortgage brokers and insurance agents.
I am concerned that call center as a tenant will incur more expenses and cause more troubles than I think.
What are pros and cons of having a call center as a tenant?
Here are some I can think of. As they grow (they start with 6 people, but the office can accommodate 20 calling stations):
1. They will take more parking spots, leaving less parking for other tenants.
2. They will use more water and restroom supplies.
3. They are noisier than most other types of businesses, which might be nuisance to other tenants.
4. More power consumed to run computers (electricity + A/C).
5. May incur higher maintenance (cleaning) cost.
Should I charge them more because of the reasons above? How much more?
Is there anything else I should take into consideration before signing a lease agreement?
I have had the experience of renting to call centers both good and bad. The bad are the companies that come into communities and do fundraising calls for groups like Firefighters or Police and they come in, call around, and are gone in less than a year. They will trash the office. They are mainly temp workers with no regard for any other tenants in the building.
The good is a reputable company with a long term lease. An example would be a company that takes calls for large mortgage companies. They do typically have a large parking requirement but find that out going into the deal. Water sewer is basically a non-issue. The employees are part-to-full time but not temps for the most part. The long term tenancy ensures they wont trash the office and if they dont follow the rules there is a manager/owner you can hold accountable.
As far as utility usage (talking about a long-term tenant) they should pay their own utilities as well as cleaning expenses. They should have their own restrooms if possible.
It is totally reasonable to charge a premium for things like excessive parking and an increase on building services. If the company is reputable they should fully understand and agree to a reasonable increase in base rent.
Any more details you can share? Im glad to offer any advice I can @Irina Gav.