6 Things to Consider Before Choosing Office Space to Rent

Choosing the right office space for your company is tough because your decisions can have a positive or negative impact on your business.  For example the wrong office location could cause you to lose employees or clients.  Additionally you not only need to think about your current needs but also your future office space needs.

Knowing that most landlords pressure you to sign 3-5 year office leases it's important that you carefully evaluate your current and future office space and business needs before signing a lease.

Does the office building have additional space that I can expand into?

Unfortunately you can't just think about your current office space needs.  In a hot market where vacancy rates are quickly decreasing companies need to plan for future space needs also.  If you think you will need more space sooner than later consider getting a right of first refusal (ROFR) or a right of first offer (ROFO) that will give you first dibs on space that comes available.

Will my employees like this office location?

Don't risk losing good employees!  When contemplating an office move let your employees give their two cents and find out how far they are willing to drive.  If it is convenient for them they are more likely to stay.

Will the new office space be easy and convenient for clients to find and drive to?

Is the office building easily found?  Will your clients drive longer to use your services?  If you don't know ask.  Let them know that you are considering moving into a new office and ask them if they would drive the extra mile to use your services.

Is the office building the right image for you?

Do you think your clients would question how much you are charging them if you leased space from the most expensive class A office building?  Do you need to be in a nice building to help with recruiting and retaining good employees?  Would your clients think you are not successful if you were not in a nice building?  These are the types of questions you need to ask yourself as you pick your new office space.

What all is included and not included in my monthly office rent?

Landlords quote office rental rates in different ways.  Some quote $21 sf full service while others may quote $11 + $10nnn, which is the same as quoting $21 sf.  I would suggest you always ask.  “Mr. Landlord what is and is not included in your quoted rental rate?”  Find out who is paying for electric, janitorial, maintenance, hvac charges, tenant improvements, etc..

How many parking spaces am I allowed to use?

Most buldings have parking ratios that you must adhere to so it's important that you find this out. Otherwise if you exceed your allotted parking amount you will be in default of your lease.  Does the building offer parking for visitors?  What is the cost for parking (if any)?

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