Key #1:  Prior to looking at potential office spaces, review the budget.  Total occupancy costs for a space should not be greater than 10% of your gross revenue.  Most landlords expect tenants to sign a lease for a term of 3 to 5 years. Landlords are figuring the costs associated with a new tenant occupying space such as fresh coat of paint and new carpeting.  In addition is the potential cost of build out to meet the tenant’s layout, free or abated rent etc.  

Key #2: Determine how much space you need.  Consider the following questions:

How many employees do you have today and how many are you apt to need to support your company’s growth for the term of your lease?

Key #3: Your company’s layout.  The range can be 100-200 square feet per employee.  That is a large range but size depends on many factors: number of private offices, conference room(s), reception area(s), kitchen(s), storage or file space, lunch room, & workstations.  The space requirement could even be less depending on whether employees are working from home, and whether that means shared offices.

Key 4: Consider the types of office space you would like:  a direct lease with a landlord will usually allow the landlord to consider making improvements to the space such as fresh paint & carpet.  More negotiable are such improvements also referred to build out are: adding a kitchen or kitchenette, create offices and a conference room or conversely to remove all or some of these to create more of a bullpen layout.  When adding or subtracting offices and a conference room that involves modifications to the lighting system, the HVAC ductwork distribution, any sprinkler system etc. With a sublease is involved it is more complicated for either landlord or tenant to justify making improvements to the space.   The landlord & tenant would need to grant permission and they may not have any incentive to do so.

Key 5: Location, location, location!!!  It is extremely important to consider your employees when choosing a location.  Afterall, you want to retain your best and brightest!  You should determine where your employees live and the type and length of their commutes.  The proximity to public transportation or major highways will increase your employees' productivity.  They will not arrive road-weary and not be them scrambling for the doors at the end of the day in order to beat traffic.  Additionally, an area with easy access to things such as cleaners, a gym, a mechanic, and even a local favorite coffee shop offer convenience to your employees’ daily routine, and in turn makes them better employees. The availability of child day care, restaurants, hotels, residential areas and other convenience are important factors to consider for the company and its employees.

Diminish the loss of the efficiency of running your company.  When determining what is best for your business, a seasoned, trusted commercial real estate advisor will help ease the burden and amount of time it take for you to make an informed decision.  You have a business to run, making it less efficient to make these decisions without assistance.  An excellent broker will meet with you, the client, understand your wants and needs, and do the market research to determine what is available for lease within your space requirement and budget.  The broker will assist you to reduce or weed out spaces from an initial search that do not fit your personal situation, and present a survey of vacant spaces for you to consider. The broker then arranges for tours of the spaces of interest.  A broker who is representing a client seeking office space will act in your behalf when negotiating the letter of Intent. This letter includes very inportant elements of the lease to be considered and evaluated: rent, move-in date, a Tenant Improvement Allowance, free rent, construction costs, length, and additional terms. The best news is that brokerage fees are paid by landlords and are at no charge to the tenant.  

Our firm is known as being a value-added resource.  We welcome the opportunities to save our clients’ time and money on all of the business terms of a lease.

We also offer advisory services for assistance in assembling the team members that the tenant may require if it does not have such a team to plan for the transition into a new office space.   Such services include introducing prospective tenants to: attorneys’ space planners, general contractors, floor covering installers, painters, movers, and many other associated services. Should you like to learn more, please contact us.