Choosing office space can be very challenging because your decision will have so many consequences on your business. For example, the wrong location could cost you your employees or clients. Furthermore, you have to base your choice on your company’s future needs, not just your current situation. Here are some questions you can ask to make sure you rent the right office space.
Is there room for my company to grow if I rent the right office space?
When looking for office space, don’t limit your search to your immediate needs. Take into consideration that your company is likely to grow over time and you’ll eventually need additional space. Keep this in mind before you rent the right office space. When negotiating a lease you have a few options. Add extra empty space to your lease for future needs. In case you can’t afford extra space to give you room to grow, try to negotiate a shorter lease. Additionally, you can add a clause to your lease that gives you the first right of negotiation. So if any adjacent space becomes vacant you’ll be the first one the landlord will offer it to.
Is it the new office in the right location for your key employees?
Before you rent the right office space, consider where your key employees live. Think about whether the new space is convenient for them and will they handle the relocation with ease. A long, expensive commute may make them look for employment elsewhere. A good option, in this case, is to ask your staff for their opinion. Let your key staff weigh in on the decision and choose to rent the right office space together. This way you don’t risk losing them. Additionally, they will feel more appreciated and are likely to perform even better.
Before you rent the right office space, think whether the location is convenient for clients
You also want to rent the right office space that’s accessible to your clients. Transportation costs continue to rise and people may not be as willing to travel to do business with you. Perhaps you’ll leave an urban location for a cheaper space in the suburbs. In this case, consider whether the lower expenses will make up for the possible loss of clients. Also, think about whether those clients are worth losing over cheaper rent. Even though we live in the age of video conferencing and Skype, it’s important that face-to-face meetings be manageable.
Does this office send the right signal?
Think about the signal you want to send with your new location. Your office space will be much more than a collection of cubicles and offices. It will also be a sign to others of how well are you doing. However, this is a fine line to walk on. If you spend too much on luxurious office space, the client may start to wonder if they are paying too much for their service. On the other hand, if you don’t spend enough it might have the opposite effect. People will wonder about the financial health of your company.
Are there hidden costs I’m not considering?
Don’t rent the right office space without calculating the full cost. Rent, utilities, and the construction costs are the usual expenses. However, there are other costs that may not be obvious because there can be hidden expenses. Consider hiring a professional broker to help you understand your total price. You have to look at the costs associated with the move. Also, hiring movers to help you out when moving offices should be added to the final price. Additionally, take into consideration whether you’ll have to do some remodeling in the new space. Perhaps you’ll need some new furniture. Even restoration of the old space can be an additional expense.
What is the parking situation?
Another important thing to consider is the amount of parking available at your new location. Also, think about the potential cost to employees and clients. If parking options are tight, is there another place where employees can park. Additionally, find out if you can reserve some of the more convenient spaces for clients Negotiating special employee rates and validating clients’ parking tickets are always good ideas. However, they need to fit into your budget. Also, if it’s too costly for your employees to park, they might leave the company for more suitable conditions.
Would I consider sharing an office?
Sharing space with another company can save you some money and rent the right office space for a lesser amount. Additionally, you’ll save some more on common areas like kitchens and bathrooms. If you are having doubts about sharing office space contact the moving company. They could provide you with some helpful tips on this topic. Furthermore, to make day-to-day business easier, it’s ideal to share with complementary businesses. For example, an architect might share a space with a builder or a PR firm with a Web designer. To avoid any unpleasant situations, there should be a formal agreement between tenants, even if it’s month to month. Also, if it is a good fit for both of you, make sure the lease on the space you’re sharing is up to date.
What happens if I sell my company during the course of the lease?
If you are looking to sell your company, make sure the lease is clear about your responsibility. Furthermore, many leases force the original owner to have liability in the future should the new tenant not perform. There’s nothing worse than selling your company only to find out that the new owner hasn’t paid the rent. In this case, you might be the one the landlord comes after for unpaid rent.
How secure are my lease and rental rate?
The last thing you want is to rent the right office space and be faced with difficulties at the end of your lease. For example, the landlord is renting the space to someone else or increasing the rent way up. To avoid this, add a clause to the initial lease that gives you the option to renew. Rental rates are usually negotiated at the time of renewal since the real estate market is always changing. Every year, rental rates are bound to rise. However, you can try to cap any rent increase to no more than 5 percent in the original agreement.