How Do You Make Money Renting Office Spaces?

If you have unused office space, you can easily turn this into an opportunity for financial growth. Whether you have an entire office available or just a small corner, there are plenty of ways to make money off the unused space.

You make money renting office spaces by:

• Accommodating other businesses
• Hosting private events
• Creating a co-working space
• Renting to photographers
• Renting a desk
• Allowing advertising

Keep reading as we explore the different ways you can make money by renting all or part of your office space. We also look at what you need to consider before deciding to rent office space, as well as how you can increase these profits.

Renting the Entire Office Space

Renting out an entire office space is a great solution for established businesses or larger events. If you have a complete office space to rent out you can benefit from the versatility of renting to:

• Pop-up shops
• Businesses that need a space for training/meeting
• Private events
• Individuals (by creating a co-working space)
• Photography studios

Most office spaces are equipped to handle any of these situations with minimal adjustments.

Pop Up Shops

Seasonal or short-term retail stores often seek flexible rental agreements, and they are not always successful in this endeavor. Offering your office space for a limited time can meet their needs while putting the space to good use.

These businesses include:

• Seasonal boutiques
• Weekend markets
• Mobile businesses

Letting someone set up in the space, even if it is just temporary, will keep the location relevant and draw attention from potential renters. You may also have a repeat client that returns regularly, depending on how often they need the space.

Professional Training/Meeting

While many businesses are transitioning to at-home work environments, they still need office space for in person training events and meetings. Instead of keeping their physical location open, it makes more sense to rent a space for these occasions.

Your unused office is often perfect, especially if you already have desks and equipment in place. Businesses and other professional organizations can use the space without worrying about keeping up with overhead costs.

Private Events

Finding a clean, neutral space to host a private event can be difficult, but unused office spaces are easy to dress up for all occasions.

An office space can be rented out for:

• Book clubs
• Birthday parties
• Wedding parties
• Baby showers

The space is sufficient for allowing people to gather and celebrate in public, but it allows for more safety and security than more public locations.

Keep in mind that not every office space can accommodate private events, and you may need to upgrade or renovate the space to reach more customers.

Co-Working Spaces

You can also divide the space into multiple workstations and rent each one out individually. This is an effortless transition if you already have:

• Desks
• Chairs
• Internet access
• Phone lines

You can set the degree of privacy for each of these stations, providing a space for at-home workers to separate their work life from their personal life.

Photography Studios

Office spaces are the ideal location for photographers to set up their studio. They are large enough to accommodate all the lighting and equipment used for photography, and they offer a professional space to meet with clients and models.

This can be a longer rental agreement or a short-term solution for a single shoot, but the neutrality of the office space allows photographers to get creative. The clean, empty canvas shows endless possibilities.

Renting Parts of the Office

If you do not have a complete office to rent out, you can still make money from unused space. Often, renters just need a desk or a room to do their work without being bothered, and that might be all you have to offer.

You can also take advantage of unused space in the office by allowing businesses to advertise there.

Renting Desks and Rooms

With the shift towards at-home working, many employees find ‌it is difficult to separate their personal life from their professional endeavors. Those that do not have a dedicated workspace at home can suffer from distractions and productivity blocks.

Renting out a desk or a room provides a space for at home workers and entrepreneurs to focus without forcing them to enter a major financial agreement. Often, these individuals just need a desk to break up the monotony of their life and separate their responsibilities.

You can even take advantage of resources such as Optix that handle:

• Resource, desk, and room booking
• Integrated invoicing and payments
• Detailed analytics

This is also a great way to manage any co-working spaces you create with a full office spread.

How to start an office space rental business.

Advertising Space

There are two ways you can make money by renting advertising space in your office.

You can allow local businesses to advertise to employees, relying on you to facilitate the ads. These might be flyers around the office or sponsored materials, but they usually work on a smaller scale.

For a more hand-off approach to earning money through advertising, you can allow an advertising agency to manage any free space that you have. This includes aforementioned situations, but also extends to projects as large as allowing billboards on your property.

In most cases, you collect commission from these advertisements. You can also sell or allow access to some ‌customer information to increase the effectiveness of these ads (within legal boundaries).

What to Consider Before Renting Office Space

Before you rent out an office space, you need to consider:

• What the space has to offer
• Any risks associated with renting
• Existing laws and agreements
• What your current costs are

In some cases, renting out the space may be unrealistic or require more effort than you are willing to put forth. In some situations, selling the space can be more beneficial.

Having a clear idea of what to expect from the process will help you make this decision.

What the Space Has to Offer

Different things to inventory include:

• How much space you have to rent
• How long you can rent the space for
• Any amenities you have

These details help you determine what events the space may be suited for and what conditions you need to set in place when renting the space.

Using this information, create a list of potential client demographics. This should also assist in creating a plan for marketing the space and setting expectations for finding renters.

Risks of Renting

There are plenty of risks you assume when renting, including:

• Theft of equipment in the
• Injury that occurs on the property
• Damage to the office space

Check with your existing insurer to make sure you are covered for these situations or to find out what coverage you need to rent your office space. You may also be able to have renters sign a waiver of liability agreement to reduce these risks.

Legalities

If you are currently renting the office space, make sure your lease agreement allows subletting.

Before renting, you also need to check into any rental laws in your area regarding:

• Safety
• Inspections
• Parking regulations
• Tenant rights
• Documents
• Licensing

This differs depending on local laws and the nature of your rental agreements.

Covering Costs

First, determine how much you will spend to keep the space open. This includes rent or mortgages, utilities, and cleaning costs.

Determine how much you will spend on your attempts to rent the office space, including:

• Running ads
• Making repairs
• Conducting reference and background checks

You need to find a way to factor these costs into your asking prices, or you need to create agreement with renters for sharing the costs.

Ways to Make More Renting Office Spaces

You can make more renting office spaces by offering more.

Start by evaluating any available amenities. If you have a mail system in place, you can allow renters to take advantage of it for a small additional fee. They can also rent material that you already have on hand, including:

• Desktops
• Teleconference devices
• Secretary services

If you have the means to upgrade the space, bringing it up to date can attract more renters and allow you to charge more. You do not need to decorate the space, but finding a neutral baseline for decor will make it more attractive to renters.

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Frequently Asked Questions

How much can you make from renting office spaces?

Most commercial office spaces charge anywhere from $5 to $60 per square foot when renting. Co-working spaces often go for $100 to $300 per month. The actual profit depends on underlying costs and the nature of the rental.

Where can you advertise office spaces for rent?

Common places to advertise an office space you have for rent include local marketplaces, newspapers, and Craigslist. You can also look for companies dedicated to managing these situations, such as Optix or WeWork.

Is renting an office space a good opportunity for passive income?

The opportunity for passive income depends on how long you can rent the space out for. Long-term lease agreements give you greater financial security and allow you to be more hands-off, while renting the space for singular events require you to continue marketing the place and trying to find renters.

To learn more on how to plan your own office space rental business click here!

Please note that the contents of this blog are for informational and entertainment purposes only and should not be construed as legal advice. Any action taken based on the information provided in this blog is solely at your own risk. Additionally, all images used in this blog are generated under the CC0 license of Creative Commons, which means they are free to use for any purpose without attribution.