Questions to consider before renting office space
Looking for Office Space To Rent Near Me then in this article we look at ten points for consideration. Hopefully at the end of the article you will have a better idea of whether serviced offices, flexioffices, coworking space or traditional offices are most suitable for you.
1. Are you building for the future?
If you’re looking to rent traditional office space, you may find landlords expect you to sign a 3 to 5 year lease, or possibly even a 10-year lease. This causes a challenge as if you select a space based on the number of employees you think you’ll employ a year from now, you could easily outgrow the space before the lease is up. Alternatively if you predict employee growth but end up contracting then you will be paying for unused space.
Some commercial advisors will suggest to business owners to opt for more space than less because surplus space can probably be rented out later on. Point of caution– if you do plan to rent surplus space, be sure your lease agreement will allow you to do so.
2. Location safety?
If the building where your rent space is in unsafe, undesirable or desolate part of town. if the office space is located near other vacant or run-down buildings or near a spot that attracts unsavoury characters. Then attracting quality talent, which is difficult anyway will become more challenging.
Ideally the office space will be well lit, close to bus stops and cycleways and have parking within walkable distance. All of these factors will make it easier for employees to feel safe when travelling to the office.
3. Is the office space technology suitable for your business and equipment needs.
Whatever the age of the office building does it have enough electrical sockets or LAN connections in the office. If yes are they near to where you want to place desks or equipment. Even for a relatively small office, if you need to have an office space rewired to meet your needs, it can cost a significant amount of money and cause a lot of disruption.
4. Office furniture availability and cost
In our experience too many tenants consider office furniture too late in the process. Good quality, commercial office furniture delivery is often on 4 to 6 week delivery schedule. This means with the absence of installed and wired furniture a tenant cannot open for business even if a space build-out is complete.
In a traditional office fitout, with the buildout of the space, the furniture should drive some of office footprint planning, especially for wiring.
5. Will the rent increase each year?
Many traditional office leases will have annual percentage rent increases built in. These should be identified clearly in the lease agreement.
To keep your rent from astronomical rises at the end of the first multi-year term, establish if you can have the lease written with an option to renew, at the same predefined increase rate.
A rent increase could be substantial when you go to renew, if you don’t’ have an option to renew. If you want to stay in that office location. You are either stuck at paying the higher rate or having to go through all the pain of finding another office location, with all the associated costs
6. What’s included in the lease?
- Your costs for leasing office space are rarely limited to just the monthly rent cost.
- Establish in advance what expenses are and are not included as part of your agreement.
- What utilities will you have to pay for?
- Will you have to pay for rubbish pickup, cleaning services, snow clearance in the winter, or any other common area fees?
- If something isn’t included, ask how much the monthly cost has been historically.
- When you lease a home or apartment, the landlord normally takes care of all repairs. With commercial space, that may fall completely on you. Make sure it’s clearly identified within the lease.
- Point of caution: Don’t be taken by surprise after you sign a multiyear lease.
7. The thorny issue of cars and parking?
If you’re leasing an office space near to a retail space, the landlord should provide you an accurate count of how many cars drive by each day. This can be especially important during rush hour?
How easy or difficult it is for cars to park are there designated areas for visitor parking, disabled parking as well as employee parking
Is there enough parking? Many modern office facilities have just a few tenants and not have enough parking space for everyone at one time.
If you hold meetings or conferences with multiple attendees on site car parking can become a major stress issue for you and clients
8. Who owns the building?
Establishing who owns the building is key, is it a large corporation or a sole individual. Is the business owner local, if not how do you go about getting issues related to the building resolved.
Getting the premises owners attention is sometimes problematical, even when the business owner is local. If possible, check with some other tenants in the building to find out how quickly problems get resolved. Another option: Ask the landlord for contact information for former tenants of the space you want to lease. Call them and ask about their experiences.
9. The lease small print
Business leases are complicated documents. “Even terms that seem familiar may have a very different meaning in the lease than in everyday English.”
Point of caution: The office space lease you sign was written to protect the landlord’s interest rather than yours. Make sure you have your interests represented as well. Have your solicitor read over the lease and make sure you understand all the terms.
A good solicitor may be able to suggest terms in the lease you could try to negotiate to be more favourable to you. For example did you negotiate a certain number of dedicated parking spaces in the car park or use of meeting rooms that are outside of your leased space? Make sure they are detailed in the lease before signing, verbal promises are hard to enforce so.
10. The legal points
- Most leases say that you need the landlord’s permission to assign the lease to someone else, or even to sublet the space.
- Many leases are even stricter, and require you to get the landlord’s consent to sell the equity in your business, or merge with another company.”
- An “out” clause spells out the terms by which you can get out of the lease if you do outgrow the space, or if for some unforeseen reason your business can’t continue to operate in the space.
- For instance, some landlords will agree to a clause that lets you terminate the lease without penalty provided you give them a certain amount of advance notice (usually at least three months).
The benefits of a serviced office
Serviced offices have gained significant popularity as a more flexible and convenient alternative to long-term renting of traditional office spaces. This shift in preference is rooted in various advantages that serviced offices offer, making them a better option for many businesses.
First and foremost, flexibility stands out as a key factor in favour of serviced offices. Traditional office leases often require businesses to commit to long-term contracts, typically spanning several years. This rigid commitment can be problematic, especially for startups, small businesses, or those going through periods of change. Serviced offices, on the other hand, provide much shorter lease terms, sometimes even on a month-to-month basis as provided by Brightfield Business Hub. This level of flexibility allows companies to adjust their space requirements based on changing needs, scaling up or down as the business demands, without being locked into a lengthy and potentially burdensome lease.
Cost-effectiveness also plays a significant role in favour of serviced offices. When renting a traditional office space, businesses often have to deal with upfront costs such as furnishing, equipment, utilities, maintenance, and more. Serviced offices, however, are fully equipped and furnished, offering turnkey solutions that significantly reduce the initial investment. Additionally, the bundled services in a serviced office, including reception services, cleaning, and utilities, can simplify budgeting as these costs are often included in a single monthly fee. This predictable cost structure can be advantageous for businesses looking to manage their expenses more effectively.
The dynamic and collaborative environment of serviced offices is another compelling aspect. These spaces are often designed with a modern and open layout, encouraging interaction and networking among businesses sharing the same premises. This fosters a sense of community and collaboration that can lead to creative exchanges, partnerships, and potential business opportunities. In contrast, traditional offices might lack this sense of community, potentially leading to isolation and missed chances for synergy.
Furthermore, serviced offices offer enhanced convenience. Facilities like meeting rooms, conference spaces, and even reception services are readily available, eliminating the need for businesses to invest in such amenities themselves. This can save considerable time and effort, allowing teams to focus on their core operations instead of dealing with logistical concerns.
The scalability provided by serviced offices cannot be overlooked. As businesses evolve and grow, their space requirements change as well. Serviced offices provide the ability to easily upscale or downscale the office space according to the current needs, without the hassle of renegotiating leases or moving to entirely new locations. This adaptability aligns well with the dynamic nature of today’s business landscape.
Serviced offices offer a range of benefits that make them a more attractive option than long-term renting of traditional office spaces. Their flexibility, cost-effectiveness, collaborative environment, convenience, and scalability provide businesses with the agility and resources they need to thrive in an ever-changing market. This shift in preference towards serviced offices signifies a modern approach to office space that aligns with the evolving needs of businesses in the 21st century.
Office Space To Rent Near Me – Summary
Business leases have a longer length and are more complicated than residential leases. Therefore before signing, get help from a solicitor who specialises in this field. Only an expert practitioner will have the knowledge to represent your interests in the contract negotiation other than the basics like price and length.
Contact Michelle Craig at Brightfield Business Hub on 01733 595885 or email Michelle Craig at arrange an appointment to see the wide range of office spaces and meeting rooms at BBH. Click here to have all your office space questions answered.
For information on short term self storage facilities that are ideal for businesses click here
