5 Things to Consider Before Leasing Office Space

Contributed by Thomas Hernandez, Associate Director, SIOR, CCIM

Whether your company is moving offices or opening its first brick and mortar location, leasing office space can be a stressful task. According to a 2007 study done by Gettysburg Professor Andrew Naber, “one-third of your life is spent at work”. So, it’s safe to say your office has a major impact on your life. We collaborated with our real estate and property management professionals to compile the top five things to consider when renting commercial space.

Know your business needs

An office is more than four walls and a door; it is a representation of your brand and a second home for your employees. When looking for your new office, it is important to consider your employees’ needs. What kind of culture do you want to foster? Open floor plans and shared workspaces are great for collaborative work environments but can be inconvenient if your job requires you to maintain work files and quiet time to focus. Do you want to share common area restrooms with other tenants in the building? How much parking will your employees need? If your business sees a lot of clients, will you require designated parking for them? All of these minute details can play a major factor in the overall productivity of your business.

Know your location

Even the best commercial real estate can be a problem if it’s not in the perfect location. If your business relies on a great deal of foot traffic, you will want to ensure you are located in a high to moderate traffic area with easy access to major roads/interstates. According to BrightLocal.com, “consumers are willing to drive between 12-23 minutes to a local business”. On the other hand, if your business does not require clients to visit your office, an area with less traffic congestion can be nice. However, you still want to consider a location that is convenient for your employees to drive to.

Think about your company’s future

Not only does your commercial space represent your company’s brand, it can have a major impact on future growth. While calculations can never be exact, growth is always the end game and has some underlying factors that will play into selecting your office space lease. Will your growth mean the addition of future employees, resulting in the need for more workspace? Will you need more showroom space? If you have a medical office, do you need to have more patient rooms built? Does your current lease allow for you to expand into adjoining suites if necessary? If all else fails, does your lease allow for early termination or sublet agreements within reasonable terms?

Don’t fixate on rent rate

Tenants often go after a specific location because of the advertised rent rate but fail to factor in other costs that can dramatically alter your monthly payment. When considering financials, it is important to also look at property taxes, utilities, property insurance costs and other key expenses that comes with your commercial real estate property.

Work with a reputable broker

Last, but certainly not least, do not underestimate the importance of using a broker to help you find a commercial real estate space. In addition to sharing their market expertise, they can find off-market spaces, negotiate lease terms, and advise you during tough decision-making processes. A good broker will always have their tenant’s needs in mind and can provide you with a level of service and attention that can lead to your business’ success stories.

At Ciminelli, we know how your office space can make or break your business. Both our property management and leasing teams work hard to ensure we provide you with the greatest service and the best possible outcome for your business.

 

Contact Ciminelli Real Estate Services today to start looking for your next commercial real estate space!