Is your new business starting to outgrow that spare bedroom in your apartment? Or do you have an existing office space that is getting too small for your growing team?
Then it’s time to start your search for new office space. Although it’s a lot of work, it’s an exciting time, as you have the opportunity to take many factors into consideration, finding the perfect space, so that your team can be more comfortable and more productive than ever before.
But if you aren’t confident in your commercial real estate skills, you’ll want to read our rental guide down below, which will help you decide what your business needs, and how to find the perfect commercial office space to meet those needs.
Consult Your Business Plan
Before you do anything, you want to take some time to reflect and revisit your business plan. This is the document you created before even starting your business.
It outlines the path your business is set to take in order to grow and become a sustainable venture. What does it have to say about office space?
Is your goal to have the cheapest rental unit possible, so that you can save money on overhead, and either pass those savings down to your customers or increase your bottom line?
If so, consider this business advice: your employees are the lifeblood of your business. Your business cannot operate without them.
One of your main goals as a business owner is to make your employees love working for you so that they never quit. Having to re-hire new people all the time wastes time and money.
Investing in your team might mean renting a better, more expensive office space if it’s a nicer building, that’s more comfortable, and has the amenities they need to be happy and productive at work.
Now, set up a budget, knowing that a better building is an investment in employee happiness and productivity. While you might be spending more on rent, your business is poised for growth with happier, more effective employees.
What Do You Need?
Next up, determine what you need, and what your employees want in a new building. If you have a large team, you might need to get a traditional office space that isn’t shared with other businesses.
But for smaller teams, you may be able to get shared office with other small businesses and independent contractors. While you’ll generally have your own corner of the building, many of the common areas, like the kitchen and bathrooms, are shared.
There are a few benefits to this setup. For one, shared space means shared rent. So you can work in a higher quality space without having to shell out too much money.
Plus, you and your team have the opportunity to interact, and even collaborate with other professionals to provide business tips. Having other people to chat with, outside your company, may provide fresh insight into your ideas and projects, and can help provide new solutions to your business problems and goals.
This setup can also make the work environment more fun and feel more modern, which can boost morale each day.
Understand Building Classes
If you are looking for your own office space for rent, consider the different rental classes and which one best suits your business goals.
Class A buildings are of the highest quality. These are the types of buildings that are brand new or freshly remodeled, and located in the best parts of town. That means they are usually downtown or in trending neighborhoods, near lots of other great businesses and restaurants.
If you are in a big city, that means your employees can likely walk to work, or take public transportation, which they might appreciate.
Class B buildings are the next level. They won’t be perfectly updated, and might even be a little bit outdated. They can generally be used without much work. But if you want to really make these spaces comfortable, some renovation will be required.
Class C buildings are those that definitely need some remodeling to make them productive, comfortable workspaces. They might be in less desirable neighborhoods, such as industrial areas, away from other places of interest.
Here’s some rental advice: if you plan on staying for a long time, consider a cheaper building that needs some remodeling. While you might have to spend money upfront, the money you save on rent each month over the next few years could be worth it.
Plus, you get to customize the building to suit your specific needs.
Finding Office Space
Once you know what you are looking for, you can actually go out and tour some properties. The easiest way to do this is to work with a commercial real estate broker.
They will have connections with all of the main commercial real estate companies in town, who each manage their own property listings. The broker will be able to create a list of buildings that meet your specifications far faster than you could on your own.
If you’d prefer not to work with a broker, you may need to research CRE companies in your town and contact each one individually to see what buildings they have available.
And of course, you can drive around town, particularly in your preferred areas. Many larger buildings may already be occupied but might have extra office space available for rent.
You’ll need to look for signs outside the property that advertise this.
Once you’ve found some options, you’ll want to go and tour the grounds. When you find a property you like, plan to negotiate the lease agreement. These are complex documents, and you should have an attorney work with you on the negotiation process.
You may be able to negotiate the price, the length of the rent-free period while you remodel and furnish the building, and who is responsible for maintenance and upkeep.
Onwards and Upwards
Hopefully, this commercial rental guide has given you some ideas to help you plan and find your new commercial office space. Moving into a new space is exciting, though daunting.
But once you get settled in, it marks a new chapter for your company. It’s a new opportunity to grow and move forward.
Looking for more business tips like this? Head over to our blog today to keep reading.