Nowadays, finding an office space for rent is easier than it seems, you can easily do it with the help of brokers or special websites. They can be used to select a space that will fit your application and budget.
Also, you can use brokers or agencies to solve problems with the verification of the offer and the drafting of the contract. But you can find a real office on your own. Here are some tips from us:
1. Set a Budget
A start-up company does not need an expensive office in a prestigious area. Even if you have money for it, it is better to invest it in business development.
However, you should always remember that the price of an office is not only the money you spend on rent but also related costs: utility bills, the cost of cleaning, security, parking, etc. In some cases, the amount of these expenses may be comparable to the rental rate. Do not forget about this in your quest to find an office cheaper. Also, in order to save money, you can use a hot desk office for temporary or new employees.
2. Calculate the Required Number of Jobs
You need to focus not on the number of employees that you currently have – think ahead. Today your company employs 8 people. In six months you will take two more. If you have exactly 8 office spaces, you will have to move, and these are extra expenses.
It makes sense to immediately rent an office with the expectation of a likely replenishment of the staff.
3. Specify the Location of the Office
It is very convenient for some companies to rent an office in a specific area – next to their own production or warehouse. For others, it is enough that the room is close to the metro. For others, location doesn’t matter at all.
If you personally do not have strict requirements for the geography of the office, contact the employees. Perhaps most of them live in the same area? Then it is worth paying attention to it.
4. Decide on the Lease Term
Office space is not an apartment. It is not rented daily (although this happens in the case of a dedicated desk).
The lease term for an office can range from 1 month to several years. As a rule, it is directly dependent on the area of the premises – large offices are rented for years, small ones – for months.
It makes no sense for start-up companies to rent an office for 5 years – 3-6 months will be enough. For a company with a history, a longer term is also suitable.
It makes sense for start-up creators to pay attention to coworking space in Chicago – their rental conditions are more flexible, and prices are lower than in ordinary offices.
The rental rate often depends on the term for which the office is rented.
5. Decide on the Class of the Building
- It depends on the structure, age, and amenities of the building.
- Basically, there are three classes of buildings:
- Class A – as a rule, these are the newest buildings that have some of the highest quality premises. They are constantly kept clean and cared for. This type of office is suitable for those companies that want to impress their clients, such as legal, marketing, or design companies.
- Class B – if you want a nice and spacious office, but don’t want to pay a high price for it, this is the best option. Sometimes the B buildings are old A-class buildings, but in general, they were originally built with the aim of providing reasonable offices at a reasonable price.
- Class C – less sought-after offices because they are located in old buildings, in unpopular areas, and require renovation and constant maintenance. This option is suitable for you if you want to rent a cheap office.
6. Find an Office
An independent search can take 1-3 months – you will have to call hundreds of very similar ads, go to dozens of offices and look through stacks of documents.
Finding an office is not an easy task. If possible, entrust this building to an individual employee, and control the process yourself.
Intermediaries have extensive databases of commercial premises, and they can find an office for your request in a matter of hours. As a rule, they charge a fee for their services from the landlord.
7. Competently Draw Up an Office Lease Agreement
It is necessary to approach this issue as carefully and balanced as possible. Alas, sometimes an incorrectly drawn up office lease agreement leads companies to multimillion-dollar losses and litigation. At this point, you may need the help of lawyers in order to comply with all your rights and obligations, and not be deceived.
Tenants who have already gone through this process are well aware of both its stages and duration and have already been able to “fill bumps” on the intricacies that they might not know when entering into commercial negotiations for renting a room. It can be indexation, uncontrollable operating expenses, and initially incorrectly chosen footage. Even a miscalculation in the timing of moving into a new room costs money.
Before renting an office, you should understand the needs, budget, and growth plans of your company. We recommend hiring a licensed commercial broker to identify properties and negotiate fair rents.
