Home | Business

What to Consider When Renting an Office Space

Sep 18, 2018

Renting an office space can be exciting, complex and daunting. There are many things to consider when choosing an office space including the lease terms, location, space required, needs of the business and future growth plans. It is crucial to take the time to find an office rental space that will support your team and allow your business to thrive. There are many different workplace options when it comes to choosing a space for your business, it just takes a bit of time and research to determine the best solution for your needs. Use the following criteria for things that you should consider and look for when renting an office space.

Decide if you truly require an office

Renting an office space is a big expense. Not only is there the cost of rent to consider, there are also many other expenses including furniture, telephone and internet, computers, security deposits and any possible improvements that the space requires. Depending on the nature of your business, you may be able to work just as effectively in a different type of work environment. Many companies now allow people to work from home offices in which they can utilize telecommunications software to collaborate and report to work such as Skype or Slack.

Virtual office spaces are another good option because you can schedule to use the office only when you need it. A virtual office offers all the amenities that your own office would including teleconferencing abilities, IT support, conference rooms and more. A virtual office allows you to easily utilize the office space when you need it by renting by the hour or day, without forcing you to commit to a lease. This allows for you to save time and expenses. Temporary office spaces are another good option to investigate if you are unsure if renting an office would be right for you. A temporary office space allows you to rent a furnished and functional space without having to sign a long-term lease. Temporary office spaces are a good short-term solution for your business if you are trying to decide if really do require an office space, or if you only require an office space for a short period of time.

Location is key

If you decide that you do require a dedicated office space, you are going to need to find one in the right location. The location that you choose needs to be within commuting distance for your employees and have ample parking for them. You will also want to look for an office that is on a public transportation route. The amenities surrounding the office building such as shops and restaurants should also be considered. The area that you choose for your office should also be in an area that you can recruit talent from. If you are a customer-facing business, you will want to make sure that your office will be appealing and in a prime location for them to visit.

Keep your budget in mind

It is very important to ensure that you create a budget and stick with it. Don’t choose an office that is going to eat up your company’s profit or force you to go in debt. You should take your time and crunch all the numbers to come up with a budget that will allow your company to be profitable and grow. In addition to expenses such as rent, you will also need to consider the cost of furniture, utilities, parking, renovations, supplies and other office business expenses. You will want to allocate funds for decorating and creating a space that is comfortable and conducive for working. You will also want to make sure that you can proudly show off your office to potential investors, customers and employees by creating the right atmosphere and style.

Work with an expert

Looking for an office that meets all your needs and wants can be overwhelming. You may want to work with a commercial real estate agent or broker that can help direct you towards the right office rental spaces. An expert can help you to find a suitable property in the location that you are looking for that meets your budget.  A commercial real estate agent or broker can also look for unique office spaces that can be renovated or transformed which can allow for your business to grow.

Examine the lease

You will need to take your time to find the right lease which may depend on the office space, the landlord and the market. There are many different types of lease agreements including full service, triple net, modified gross and percentage. You need to read the ins and the outs of the lease because do not want to be surprised after you sign one. Make sure that you consider the length of the lease, what is included, and what you can customize. You need to feel confident that the office rental space is going to service and benefit your business. You should have provisions in place for an early exit. Things change, and you may no longer require the office rental space before the lease is up, so you should be aware of any fees and penalties you may face.