A Miami startup’s office lease needs a cash-commitment stress test
Compare base rent, occupancy costs, deposits and seat use when choosing between an office lease and flexible workspace.
Key Takeaways
- •A hypothetical 2,500-square-foot lease at $65 per square foot annually costs $162,500 a year in base rent.
- •Ten flexible-workspace seats at an assumed $650 per month cost $78,000 annually if retained for a full year.
- •Florida’s commercial-rent sales tax repeal applies to qualifying occupancy periods beginning October 1, 2025; separately taxable services need their own review.
An attractive monthly quote can obscure deposits, fit-out costs, operating expenses and contractual obligations. Compare written offers with the same assumptions before treating either workspace model as cheaper.
Compare like-for-like costs
- Ten flex seats: Assumption: $650 per seat monthly; Monthly base cost: $6,500; Annual base cost: $78,000
- 2,200-square-foot office: Assumption: $50 per square foot annually; Monthly base cost: $9,167 rounded; Annual base cost: $110,000
- 2,500-square-foot office: Assumption: $65 per square foot annually; Monthly base cost: $13,542 rounded; Annual base cost: $162,500
These are hypothetical inputs, not verified Brickell or Wynwood market averages or available offers. Obtain current operator and landlord quotes before using them in a decision.
Ask whether the conventional lease is full-service gross, modified gross or triple net. Add the tenant’s actual share of operating expenses, parking, internet, cleaning, furniture, deposits and improvements. For a flex agreement, check minimum term, renewal, cancellation, deposits and fees for meeting rooms or additional users.
Stress-test occupancy and runway
The difference between the first and third examples is $84,500 annually before other costs. Three years of base rent at $162,500 equals $487,500, or 32.5% of a hypothetical $1.5 million funding round.
That comparison does not mean all three years are payable immediately or that the flex option has no contractual liability. Payment timing and exit rights depend on the agreement.
Model current staffing, slower hiring and a smaller office footprint. Choose the agreement whose total cost and obligations the business can support across those scenarios.
Tax source: Florida Department of Revenue, commercial-rent repeal notice. The repeal does not eliminate every tax that might apply to parking or other separately supplied services.
