Are you a business owner searching for the ideal office space? Look no further, because we’ve got you covered! Finding the perfect workspace can be a daunting task, but with a little guidance, it doesn’t have to be.
Office space is more than just a place to work; it’s a reflection of your company’s culture and values. It’s where you and your employees will spend the majority of your time, so it’s essential to make the right choice.
In this blog post, we will provide you with a definitive step-by-step guide with tips and tricks along the way. You will be able to filter out your choices that suit your requirement the way it is supposed to for your business.
So, whether you’re a startup or an established company, join us as we explore the world of commercial office space and find the perfect fit for your business.
Step 1: What Do You Need?
When embarking on the search for office space, it’s essential to have a clear understanding of your company’s unique requirements. While obvious considerations like headcount and budget are crucial, it’s also essential to factor in elements such as available parking, proximity to public transportation, and potential for expansion.
As the corporate landscape continues to evolve, shared coworking spaces have emerged as the preferred choice for businesses seeking agility, especially during times of economic uncertainty. With a flexible workspace, companies can react swiftly to changing needs, simplify costs, and empower their workforce to operate seamlessly across cities and even continents.
Although a traditional office lease may offer long-term cost benefits, tenants can find themselves locked into multiyear contracts, unable to adjust to evolving business needs. Moreover, an expiring lease could bring with it the unwelcome surprise of a sudden rent hike.
If a shared office space isn’t the right fit for your company, you’ll need to familiarize yourself with the different types and categories of commercial real estate, also known as building classes. Ultimately, the key to securing the ideal office space is to remain flexible, adaptive, and agile in response to evolving business needs.
Step 2: Identify and Choose the Right Building Class
As a savvy commercial property seeker, you may have heard of the three grades that categorize buildings based on their quality, location, and age. But let’s break it down for those who may not be in the know.
- First up is the prestigious Class A.
Think of it as the gold standard of commercial real estate. These are the cream of the crop, newly constructed or recently renovated buildings located in the most coveted areas of the city. With all the bells and whistles, Class A properties naturally command top dollar in rent.
- Next, we have Class B.
These buildings may not be as shiny and new as their Class A counterparts, but they are still well-maintained and have great potential for renovation. They may require a few updates, but don’t let that deter you from checking them out.
- Last but not least, we have Class C.
These properties are typically older and in need of some TLC. They may be located in less desirable areas, but they present an excellent option if you’re on the hunt for cheap office space.
Now, it’s important to note that the property’s grade isn’t the be-all and end-all. Other factors such as investor risk come into play. So, don’t dismiss a building solely based on its grade. If it meets your needs and budget, take a tour and see for yourself. Who knows, you might just find a hidden gem that others have overlooked.
Step 3: Check Your Pocket
If you’re looking to lease a space for your business, it’s important to have a clear understanding of your rental budget. One helpful tool is to research the average rental costs per square foot in your local area. This provides a quick snapshot that lets you compare different-sized buildings across various locations.
Once you have an idea of the average cost per square foot, you can determine your estimated rental costs by multiplying that figure by the square footage your business requires. As a general rule, each employee will require around 150 square feet of space, with an additional 30 per cent allowance for shared spaces. As companies continue to prioritize social distancing, this figure may increase.
In addition to rental costs, it’s essential to budget for utility charges and any fees associated with maintaining common areas of the building, such as elevators, entrances, and lobbies. This common area maintenance (CAM) fees are typically calculated based on square footage and can make up a significant portion of the total lease cost, sometimes as much as a third.
By taking all of these factors into account, you can get a better sense of the size of your rental budget and make an informed decision about the right space for your business. As they say, knowledge is power – and when it comes to leasing commercial real estate, a little knowledge can go a long way!
Step 4: Take a Tour
Now comes the exciting part: visiting them. But before you step foot inside, make sure you’re fully prepared to maximize your tour experience.
First things first, schedule a tour with the listing agent and do your homework on the building’s history, amenities, and advertised features. This way, you can ensure that everything lives up to your expectations once you arrive.
While touring the building, keep in mind that not only does the condition of the office matter, but so does the surrounding area. After all, your employees will be spending a lot of time in the neighbourhood, and it will also impact the impression made on visiting clients. Take note of factors such as ease of access, nearby public transportation, building security, and promised features like that breathtaking skyline view.
Don’t forget to inquire about the building’s utilities, including electricity, heating and cooling, and water. Additionally, pay special attention to the condition of elevators and common areas as they can indicate the quality of upkeep and any potential hidden costs.
Remember, finding the perfect office space can be a daunting task, but with a little preparation and a dash of wit, you’ll be well on your way to finding the ideal space for your business needs.
Step 5: Working on the Lease Agreement
It’s important to keep in mind that the process is a bit more complex than leasing a residential property. In fact, you may want to consider enlisting the help of a broker to help you navigate some of the trickier aspects of negotiation.
One key factor to keep in mind is the division of operational costs between the tenant and the landlord. Unlike residential leases, commercial lease agreements can be structured in a variety of ways. Some leases require a simple, flat monthly rent, while others may be based on a percentage of the tenant’s sales income.
It’s crucial to familiarize yourself with the different types of commercial real estate leases you may encounter. This will help ensure that you fully understand the details and budget accordingly. Additionally, most commercial leases pass on at least some of the costs to the tenant, so it’s important to be prepared for these expenses.
Whether you’re working with a broker or handling negotiations yourself, understanding the details of commercial lease agreements is a crucial step in securing the right office space for your business. So, be sure to take the time to familiarize yourself with the different types of leases and budget accordingly.
In conclusion, finding the perfect office space for your business can be a daunting task, but with the right approach, it can also be an exciting one. By considering factors such as location, amenities, and budget, you can narrow down your options and find the ideal space that meets your business’s unique needs.
Remember, office space is more than just a physical location – it’s the foundation for your business’s success. So, take your time, do your research, and don’t settle for anything less than the perfect space for your business.
At the end of the day, commercial office space is a place where you and your team will spend a significant amount of time, so it’s essential to choose one that inspires productivity, collaboration, and creativity. With these tips and a little bit of luck, you’ll find the perfect office space for your business in no time. Happy hunting!