What To Consider When Renting Your First Office Space
Renting your first office space can be a very exciting experience and a massive turning point for your business. You can’t wait to start visiting different options, picking the best-suited one, planning your office space decor, and welcoming your clients in. But settling for any office space just because it meets your fancy can be an expensive mistake. You need to take the time to consider factors that will help your business thrive, support your working team, and give you the peace of mind you need to grow your business. So, do you want to rent an office space for the first time? Then, here are a few things you should consider.
1. Clear and straightforward lease terms
Before you rent an office space, it’s important to consider the lease terms, preferably with the help of property lawyers. You need to look for a lease with flexible terms that will align easily with your business’ growth strategies.
There are a few things you should look for in ideal office lease terms. The terms must be clearly stated and easy to understand. Also, every important provision must be mentioned. For example, factors like rent increment, payment of utilities, and maintenance and repair work responsibilities should be spelt out. The last thing you want is your landlord kicking you out for no apparent reason or springing up a surprise rent increment when you least expect it.
2. Make sure you’re financially stable to commit to an office space
Renting office space can be very expensive. The amount you end up paying for the rent is only part of the expenses. Depending on the nature of your lease terms, you may have to deal with other expenses such as paying monthly utilities, regular repairs, office decor and setup expenses, moving costs, insurance, daily commute to the office, etc.
You need to measure all these expenses against your expected monthly revenue. If you’re considering renting an office space for the first time, you’re probably a small or young business. That means you should be looking for more ways to grow your revenue. You may want to reconsider renting if you think your rental expenses will eat too much into your business revenue. Also, if you’ll have to seek financial assistance to rent, then you need to be sure that you can commit to paying off that debt and running your business at the same time.
3. Location is more important than you may think
While the modern age of doing business allows you to reach your clients from almost any location, that doesn’t mean your office location is no longer an important consideration. Depending on the nature of your business, you need to choose a location that benefits your clients and your workers.
For your clients, your location should make you easy to reach, especially if your customers need to visit your premises to enjoy your services. You’ll want an office close enough to potential clients to attract them. You also want to make it easier for your workers to commute to and from work by picking a convenient location. The longer they travel to work, the more time they’ll take to get to work, which will also affect productivity.
4. Consider the amenities you want near your office
As mentioned earlier, the office location is something you need to consider. And when picking a good location, it’s important to consider the amenities you need near your office. For example, you and your working staff may appreciate an office location that is close to coffee shops or restaurants you can use during breaks. And if your business requires you to visit banks or certain meeting places often, then it’s best to pick an office close enough to them.
Aside from the essential nearby amenities, you might also want to find out what other essentials your business will enjoy when renting that office space. For example, will you enjoy fibre intranet? What about libraries and restrooms? Will you have access to natural light, fresh breeze and open, green space? Is there an established mail delivery service? Are there conference rooms you can use?
5. Consider working with an expert
If you already have too much on your plate as a business owner, you probably don’t want to waste time searching for an office. The processes involved in finding the right office, working out the lease terms, etc., can be very demanding and time-consuming. Suppose time is a luxury you can’t afford. Then, you may want to consider hiring or working with an experienced commercial real estate agent with in-depth knowledge about commercial rental properties in your preferred location. Yes, it may cost you a few extra bucks, but it will free you from this demanding task so you can concentrate on growing your business.
6. Decide if you need an office
Perhaps you’ve worked from your home or another location and had no issues making business progress. Or maybe you feel your current workspace does not reflect the nature or seriousness of your business. You need to take the time to decide whether you need to have a dedicated office space.
Gone are the days when businesses needed some dedicated office space to show credibility and seriousness and help the business thrive. Today, and especially after the lessons from the COVID pandemic, many business owners today work fine from home and other remote locations. Consider the nature of your business. If you can function effectively in any external environment, then you might want to put off spending money renting a new office space for now.
7. Know how much space you need
So, you’re convinced the nature of your business demands that you have a traditional office space. The next thing is to determine how much office space you need. Of course, the requirements here differ from business to business in terms of staff size, company equipment, resources, etc. Take note of how many workers you have in your business and your growth projection. This way, you can rent an office space that caters to your current needs and can accommodate future growth.