You know you need a new office, but you're not sure how to go about selecting the right space. Whether you're downsizing or expanding, it's important to figure out what you may require before looking at possible sites.
Here are 10 suggestions to get the process going:
Anticipate the future.
Moving is expensive. You don't want to do it frequently. Commercial real estate experts recommend that small employers should review their business plans at least every other year to try to anticipate building needs. Do your best to reasonably account for your company's future prospects for growth and find a location that can accommodate them.
Make a list of your requirements.
Include the number of private offices, conference rooms, as well as kitchen and storage areas and open space for administrative areas. Determine whether you prefer restrooms inside the office or shared with other businesses, and how many parking spaces are necessary. Be sure to consider whether price is more important than amenities, such as a window in every office.
Quantify how much you're willing to pay for the new space.
Establish a budget that will allow you to move to an appropriate location without pushing you into bankruptcy. Many small employers can't afford Class A building space, but you may not need it. Older Class B buildings may be readily available at considerably lower rents.
Get professional help.
In addition to perusing the want ads, call the local board of realtors and ask for specialists in commercial office rentals. Ask businesses who work in areas that seem suitable to make recommendations.
Location, location, location.
Consider the outside as well as the inside of the space. Try to ascertain whether the exterior of the building fits the bill as well the interior. In choosing the right geographical area, don't just look at the architecture and design, but also think about convenience for employees, accessibility for clients, traffic congestion and security and safety.
Don't be shy about details.
When comparing sites, ask about such things as services within the building, electrical capacity, room for expansion, and absence of hazardous materials. Also, ascertain what other kinds of businesses are in the building.
Don't just look at utilities.
Inspect them. Make sure the electrical system can provide your business with all the power it requires. See whether you may need special wiring, especially for Internet access. Ascertain the efficiency of heating and cooling systems And last, but not least, make sure the restrooms are up to the task.
Check for handicapped access.
Many businesses are now required to accommodate the special needs of the disabled. If you're moving into an old building whose bathrooms and entrance ways were constructed before such statutes took effect, you could be looking at an astonishingly expensive and lengthy remodeling process to get up to code. Do some research on the front end so you won't get smacked with a big renovation bill on the back end.
Get to the bottom line in lease negotiations.
Ask whether parking is included in the rent. Find out how your rentable area will be measured, and what will happen if larger tenants in the building need your space for expansion. Be sure to pin down what's important to you besides the rent, and what's stipulated in the lease, in terms of landlord performance. Who pays for building repairs, and supplies and repairs in your office. If utilities aren't included in the rent, exactly how will they be determined? How are after-hours utilities handled? Is heating or air conditioning adjusted uncomfortably after 5 p.m.?
Because business leases typically run between three and 10 years, the length of the lease and its value have direct bearing on what a landlord is willing to do for the new tenant, such as knocking down walls or redecorating. Client credibility is crucial, so be prepared to undergo scrutiny of your financial history.
Have an escape plan.
Before signing on the dotted line, be sure to determine the lease commitments regarding subleasing or termination. Beware of the word "reasonable." If it appears in the document, make sure it is defined.
