We often
help clients find their perfect office space and know it is one of the most
important challenges any business faces. Not only will rent likely be your
second largest expense after salaries, but your office will also be your second
home and becomes reflective of your company, team, and culture. Your office has
a significant impact on hiring, retaining talent, and keeping employees
engaged. For growing companies, price, location, size, and timing are all
crucial to the search.
The
right time
It’s time to consider an office when you are going
from a team of five or six and plan on at least doubling within the next year. Most
landlords require at least a three-year lease, so you’ll need to have a good
handle on your growth projections, accounting for any setbacks or breakthrough
that may alter these projections
The right size
Generally,
you should be looking for 100-150 square feet per person, and even though
almost every company plans for some growth, a more realistic growth projection
is essential. A start-ups need 2–3 times longer to validate their market than
most founders expect. This means most companies grow more slowly than they
think. Let’s suppose your team has 10 people and the plan is to be at 30 people
in 18 months. You should be looking for 3,000 square foot office space on a
three-year lease.
The
right lease terms
How long
should your lease be? As a growing business with a lot of moving pieces,
signing a multi-year lease can be daunting. Most landlords are looking for a
3-4 year lease, and it can be difficult to find a shorter-term or flexible but
this need not frighten you.
Consider
that the longer the lease term, the more willing the landlord will be to do
additional work to the space. You’ll also be locking in a lease rate now,
saving yourself from extra costs if lease rates climb. All leases should have
sublease clauses allowing you to sublease your space should you outgrow it
faster than anticipated. Shorter leases offer flexibility at a cost but come
with more limited options because landlords are probably not going to pay to
have any work done in a space. A tenant often has less leverage in a short term
lease so it often becomes a deal where you have to take the space “as is.”
The
right price
Tight
budgets are always inevitable, but there are a few things you can do to make
sure to get the best price. First, you should always look into numerous
properties so that you have some leverage when negotiating a deal. Having a
second choice takes some pressure off of negotiating for your first choice. You
also want to account for the total cost of renting a space. Total cost is more
than just rent, often including maintenance, taxes, and other fees. Don’t
forget to budget for utilities, office furniture, and cleaning as well.
Finally, location and amenities will affect the price, so it’s important to analyse
the costs versus the benefits of these factors.
The
right look and feel
It might
seem like a minor factor in the early stages, but a great office space is
critical to hiring great talent. Clients will judge your business by your
offices and employees want a space that is both aesthetically pleasing and
conducive to productive working hours. The look and feel of an office also
extends to your office’s neighbourhood, but not in the ways you might think.
It’s more important to focus on being located in an easily accessible area,
than it is to be located in a cooler part of the city.
Pulling
it all together…
There are
a number of agencies that can help you with all of these starting points,
ourselves including! We can help you get
in at the right time and have a plan that accommodates growth so that you
neither waste space nor outgrow your office. We can help you with a lease that
fits your company strategy and timeline so that you make the best use of your
time in the space. And last but not least, your office must feel right – we can
design a space with the right aesthetics to promote company culture and
working.
If you need our help please get in touch and in the mean time take a look at our handy guides to moving office here
