Finding and leasing a professional office space for your growing team doesn’t have to be stressful. In fact, it’s a meaningful and exciting time for your business! If you’re empowered with the right tools and information, looking for a space to rent should be a breeze. Here are six steps in finding and leasing office spaces:
1. Figure Out What Your Office Needs
What are the needs of your business and your employees? It’s important to figure out the following before you begin your search for an office space:
- Office space
- Office layout
- Overall budget
- Class of office space
- Potential company growth
- Parking requirements
2. Set a Budget
When setting a budget for your office, make sure to consider local rental costs, financial constraints, and potential expenses for space and maintenance. Start by multiplying the average price per square foot by the space your business needs. Next, you can add utility and maintenance costs. Finally, compare your estimated budget to your financial records to set a realistic budget.
3. Look for Potential Office Spaces
It’s best to hire a tenant-broker to help you with the process of identifying properties that meet your requirements. They will help you save time and effort by providing local knowledge and assistance during the entire process. However, you’re not obliged to hire one. There are online tools you can use to look for office spaces for rent like WeWork and Managed by Q.
4. Visit Office Spaces Available for Rent
List down viable options that fit your requirements, research on the property’s background information (security features, utilities, building mechanicals), and then schedule tours. Make sure to observe and ask questions regarding surrounding neighborhoods, parking availability, and other amenities important to your business.
If you’re working with a tenant-broker, he or she will work with the listing agents, schedule tours, attend walk-throughs with you, and help you negotiate.
5. Finalize Your Business’ Financials
Your business’ financial capacity determines the type of office space you can lease. Preparing the following documents can help show potential landlords that you are a reliable tenant: latest credit reports, profit and loss statements, and other related documents.
6. Choose an Office and Discuss the Lease
Once you’ve chosen an office, it’s time to negotiate a lease. A broker usually negotiates the terms for you and ensures that you get nothing but the best. If you choose not to hire a broker, make sure you know what you’re signing up for by knowing the following terms:
- A full-service lease is when the landlord pays for most of the expenses associated with the property. This is the best and the most common commercial lease.
- A net lease is when the landlord charges a lower annual rent compared to the full-service lease but bills the tenant for other expenses like property insurance, taxes, and maintenance fees.
- In a modified gross lease, the rent if fixed – no hidden charges. However, the tenant is responsible for property taxes, insurance, and maintenance fees.
Looking for a business loan to purchase equipment for your office? Contact a team of professionals from SMB Compass is more than happy to talk to you. Feel free to contact us through email info@smbcompass.com or via phone (646) 569-9496.