According to a survey by Global Workplace Analytics, at least 25% of workers will continue to work from home in the future. Are you among these business owners who aim to cut costs by allowing remote work?
The first step in this cost-saving initiative is finding small office space for rent, so you can maximize the cost and space-saving benefits of remote work.
Follow these tips on how to find a small office space that suits your business needs.
Figure Out How Much Space You Need
Space is a major criterion when choosing an office space, especially in times of social distancing. Three factors can affect your spatial needs:
- Number of employees
- Office layout
- Extra requirements i.e. meeting rooms
Usually, you should plan for around 75 to 150 ft. per employee and 150 to 400 sq. ft. for managers.
Additionally, you’ll need sufficient restrooms, kitchen space, a mailroom, a break room, and a reception area for clients. Sufficient parking is essential for both employees and customers.
Remember to think about how much your business might grow during the term of your lease, and plan accordingly.
Decide Where You Want to Be
Location is everything when it comes to benefitting from your move.
It’s important to choose a location that’s convenient for suppliers, clients, and employees. If you’re moving to another state, you’ll need to think about which in-house employees you’re going to take with you and the costs involved.
If you service numerous walk-in clients, are there enough potential clients in your new area, and can your regular clients still reach you easily? Will you need to pay additional delivery costs if your suppliers aren’t as close as they are now?
Another vital aspect when renting a small office space is accessibility. Are there enough major roads and public transportation options nearby?
Traffic congestion can drive away customers and lead to frustration for employees. It’s best to walk and drive around your new neighborhood before you make up your mind.
Choose a Type of Office Space
You’ll find three different classes of office buildings available when you’re researching leasing an office space. These are:
Class A High-Quality Spaces
These are usually new construction with high-profile tenants. They’re well-run and best suited to businesses that want to impress their clients.
Many marketing, design, financial, and legal firms choose these office spaces.
Class B Good Quality Buildings
Class B buildings share some characteristics with Class A buildings. Many of them are purposefully constructed to offer functional offer space at a cheaper price than their Class A compatriots.
They’re often Class A buildings that have merely passed their prime.
Class C Older Buildings
These buildings were Class A showpieces many years ago. They’re located in less popular neighborhoods and often need some maintenance.
If you don’t deal with many clients in person, you can save a lot of money by leasing an office in one of these buildings.
Take Time and Budget Into Account
There are two ways time impacts your decisions. The first one is how quickly you can move in after your old lease expires without disrupting your operations.
The second is the term of the lease. Most commercial leases stretch from three to ten years, and many have minimum leasing periods. You can often save money by opting for a longer lease, although a shorter-term one provides greater flexibility.
Your lease price per square foot isn’t the only budget consideration when you lease an office. Some other aspects that add up include the cost of utilities as well as common area maintenance fees.
Visit Available Small Office Space for Rent
A tenant broker, like NSSSI Inc, Austin Office Space, and Florida Commercial Advisors, can help you figure out how to choose an office space for rent that ticks all your boxes without blowing your budget.
While you should certainly do some legwork on your own, it’s easy to fall in love with an office space that’s out of your league financially. Rather, let a real estate expert sift the wheat from the chaff and present you with solutions that you can afford.
Thanks to their local knowledge and connections, they can deliver the most bang for your buck when it comes to leasing a small office.
Visit each property several times and try to visualize how you can make the space work for your business. If you rely on walk-in clients, spend some time assessing the foot traffic outside, too.
Take note of any competitors in the area and whether they’re likely to affect your business.
Also, consider the rules for advertising your business and how much visibility you’ll get in this location.
Get the Paperwork in Order
When you’ve found your ideal space, you’ll need to accumulate quite a lot of paperwork before you can start negotiations with the landlord. You’re likely to need the following:
- Business financial documents like tax returns and bank records
- A business credit report summary and credit score
- References from previous landlords
- Proof of your finances
Often, you’ll need to sign a personal guarantee to assure the landlord that you’ll pay the rent if you have to vacate the premises early.
Sealing the Deal
The last part of the process is signing the lease on your new office space. There are three main types of leases offered:
Full-Service Leases
Under these leases, the landlord pays the expenses associated with the property. These include property taxes, insurance, janitorial services, utilities, repairs, and maintenance.
Net Leases
This type of lease agreement involves lower annual rent when compared to a full-service lease. It does include normal monthly costs like property insurance, property tax, and common area maintenance fees.
Modified Gross Leases
When you sign a modified gross lease, you pay your portion of all the fees as a lump sum, included in your rent. This is a fixed lease with no hidden costs or unexpected charges.
Getting Back in Business
When you choose a small office space for rent in a new area, you could experience several benefits. These could include lower rentals and taxes, cheaper commuting costs, and increased business.
Be sure to consider all the above pointers carefully before you make the call, and browse our blog if you’d like to discover more useful information for growing your business.