9 THINGS TO LOOK FOR IN A RENTAL OFFICE SPACE

LOCATION IS KEY

Choosing the best location for your employees and clients is crucial. The location will optimize the balance between work and personal life and contribute to recruitment efforts.

A good space will enhance your company's long-term performance. A bad location can cost you dearly in terms of capital, productivity, and talent. Price might be the most crucial aspect of finding the best location for your business.

For commercial spaces, consider what other competitors are doing before making a final decision. Analyze the area and demographic characteristics of the clientele. This will determine the atmosphere of the business, foot traffic, and the success of your enterprise. As for offices, it's essential to retain and recruit employees while ensuring convenience and comfort.

Consider renting an office within a reasonable distance. Your employees should be able to easily commute to work. If the office is too far away, they might seek employment elsewhere.

Your clients might also need to be close to you to support your business. Parking availability, neighborhood, and space accessibility are other factors to consider. A startup needs a convenient and safe location to attract both clients and employees.

If you haven't hired a team yet, consider locating your office in an area populated with top talent. In Austin, this often means being in the northwest corridor, between downtown and north Austin. At Austin Office Space, we can assist you in determining the best location for your current and future employees.

Keep in mind that there's no such thing as a perfect office space. Make a list of all essential amenities and office space you need. Be pragmatic to avoid wasting time searching for a "perfect" space.

If you're starting a small business, don't rush to choose a "chic" office. You don't want to rent a space and quickly leave it, as it could harm your profitability. Conduct thorough research and consider rents, as they all play an essential role in your success.

ESTABLISH A BUDGET

After location, the next major concern should be the budget. Don't make the mistake of renting an office space that will put you in debt.

Before even starting to look for an office to rent, have a budget in mind. It should allow you to comfortably run your business.

Renting comes with many expenses, and it's easy to get overwhelmed by bills if you're not well-prepared. So, it's the amount you're willing to spend that will determine the office space you intend to rent.

Determine the monthly cost you're willing to pay. These include rent, insurance fees, maintenance fees, and daily operational costs. Knowing all these costs upfront will prevent you from spending more than you can afford. In Austin, the typical lease includes pass-through operating costs, known as "triple net" or NNN lease, which should be factored in addition to the base rent.

Renting an office space involves a legally binding agreement for a specified period. Your goal is to enhance your company's productivity and profitability.

Renting an office is a huge responsibility, so you must ensure you're able to commit. Inquire in advance about any hidden costs. These might include concierge services and utilities.

Most business owners focus on the base rent and overlook ancillary fees. Before signing the lease, get detailed information about the actual cost of the office space.

Once you have an idea of the numbers, create a projected income statement for a long-term lease.

Break down each item, knowing that prices may fluctuate over time. Evaluate your expenses to see if they're justified based on projected revenue. The goal is to ensure that the office space will increase your profitability.

LEASE DURATION

Signing a lease is a crucial step in renting an office space. It protects your business from the financial burden that may result.

The lease has a specific duration. The lease agreement determines the terms of the lease that the landlord and tenant have agreed upon. Reviewing the lease ensures that both parties have a clear understanding.

All office leases are different. Even though they are different, they are generally written in favor of the landlord.

As a tenant, determine if the office lease terms are in your interest. Consider break clauses, rent increases, lease duration, etc. At Austin Office Space, we can assist you in negotiating the commercial terms of your lease.

Clarify these issues in advance to avoid misunderstandings during negotiations. The lease should be clear and straightforward. You need to know what you'll be responsible for and what you'll get.

All provisions should be included in the lease. You don't want to later discover that the landlord signs the lease on behalf of someone else. Or that they increase your rent by a considerable percentage.

Also, inquire about the deposit required by the landlord. The deposit for renting an office can range from 1 to 12 months' rent.

As a new entrepreneur, don't lock yourself into a long-term lease. You should expect your business to grow or save money over time. Most landlords offer leases with a minimum duration of 3 to 5 years.

Look for subleasing opportunities that offer shorter durations, usually 2 to 3 years, and often come with furnishings. There's a good chance your business won't need the space anymore before your lease expires.

Inquire about the possibility of terminating the lease early. Inquire about any necessary restoration work before vacating the premises.

EVALUATING THE BUILDING

Buildings are constructed using various engineering systems. Their condition may not be evident at the time of leasing. But some maintenance issues are easy to detect, such as cracked walls or peeling paint.

Evaluating the building will help you identify energy management opportunities. Check if the building type and space are suitable for your business. Your offices are a reflection of your company, and you want to give them a good first impression.

Before opting for renting office space, ensure it complies with local regulations. The landlord should provide basic amenities and ensure safety.

Consider the layout. An office space might seem smaller but proves more efficient for your team if well laid out. Natural light is a plus, as nobody wants to work in an environment that feels like a cave all day.

Visit the building at different times and different days of the week. Check that entrances, elevators, and parking lots are well frequented.

Consider the client when visiting offices for rent near you. Observe the impressions the environment will give your business. Then decide if the building matches your brand image.

Visit multiple office spaces before making your decision. Ask your broker to inquire about the landlord's reputation. Comparisons will help you choose an office space that meets your needs.

GETTING PROFESSIONAL ADVICE

Negotiating the terms of your office lease is a complex process that takes time. It's best not to handle it yourself. Identify a reputable commercial broker, such as Austin Office Space, who will provide you with professional advice.

Choose a broker from your area who knows the market to assist you in your endeavor. A professional will ensure your business is profitable.

Hire a broker who deals with startups and specializes in lease negotiations. Negotiating a lease involves many terms that can often seem daunting.

Choose someone who will clarify what you don't understand. Your broker should represent your interests best, and tenant-only representatives will provide you with the least biased information. Ask around or do a quick online search to find a commercial real estate broker in the community you're targeting.

If you don't hire a professional, you risk signing a lease blindly. A professional will scrutinize the contract in detail and negotiate terms for you based on the market in your area.

Their expertise will save you a lot of time in the long run. Hiring a broker to negotiate the commercial provisions of the contract will save you money, both in the long term, on tenant improvements, and on obtaining market rates.

Engage a lawyer to review your office space for rent. As a business owner, working with a real estate attorney saves time and can help you understand the legal provisions of your lease. A lawyer's review can ultimately save you money by clarifying the legal risks inherent in your lease and help you ensure you understand your responsibilities and rights.

START EARLY

Firstly, ask yourself if you need office space. Many entrepreneurs today work from home or in co-working spaces. If your business can function in such an environment, you can save money. Shared workspace or co-working space can be ideal, as commitments tend to be shorter...

Renting office space for the first time can be a daunting process. It's crucial to start looking early because most transactions involve many professionals. The whole process can take several months. If you feel it's necessary to rent office space, it's best to start searching for office space six months to a year before moving in. This will give you enough time to make a careful and informed decision, and you can hire a broker to work on your behalf.

Your sales forecasts should indicate when you expect to outgrow your current space. So plan accordingly.

TAKE INTO ACCOUNT THE AMENITIES OFFERED

Amenities come in various forms, such as on-site delicatessens or fitness centers. Also, consider the mobile phone and internet access options offered by the building. Nearby amenities can also influence your location decision when renting office space.

Amenities are what will enable your business to continue thriving. Many employees and clients appreciate an office located near a café or restaurant. Prioritize places you frequent for business reasons, like banks or meeting rooms.

Choosing an office space with the best amenities will help you attract the best employees and boost their productivity and morale. A building lacking essential amenities nearby can lead to loss of clients and employees to a competitor.

A good location is also vital for businesses. There's a link between staff well-being and infrastructure. Commuting inconveniences increase stress levels. Choose the best of both worlds by opting for an ideal site with top-notch amenities.

ASK IMPORTANT QUESTIONS

Before signing the lease, ask any questions that come to mind. Inquire about the parking spaces allocated for your business.

Ask if subleasing your space is possible. Discuss the type of signage allowed by the landlord. All this will help clarify what's allowed and what's not.

The answers to specific questions you have will play a crucial role in your final decision. Never make the mistake of considering the lease provided as a final document. Prioritize your requests before starting negotiations and ask your broker and lawyer for suggestions regarding the lease.

If you have many requests, ask the landlord if you can sign a long-term lease as a concession. A long-term lease makes it easier for the landlord to customize your space.

During negotiations, list your potential requests for assistance services. Discuss specific needs such as server rooms, reception services, etc.

Also, inquire about neighboring tenants before signing the lease. Choose a building with businesses that complement your industry. This will increase your chances of success.

Synergy is becoming an increasingly trendy word. Increased foot traffic is one of the benefits of choosing a synergistic space. Businesses are more productive when surrounded by people who help each other.

Every business aims for rapid growth. Identify an office space that will meet your needs and provide you with adequate options.

Identify space with flexibility. Flexible growth options are ideal when you're starting out. Your company can quickly expand because the future is uncertain. Determine if the building has adjacent spaces that allow for future expansion or contraction.

Moving into new premises gives you the opportunity to make radical changes. It can be an excellent way to develop your company culture. Discuss what employees should keep in the new premises. Consider improvements to the employer image and the company brand.

Flexible office spaces place more emphasis on your company's identity. Furnishings and renovations can transform any space to match your needs.

Identify the space that would best suit your employees using a heat map. Adjustments should be possible based on your company's growth and evolving needs.

Co-working spaces have become popular alternatives to traditional leases. They often offer a flexible solution with short-term agreements and allow you to decrease or increase the space depending on your company's changing needs. Co-working can also allow you to add additional offices if necessary. You can move in quickly and efficiently, with minimal downtime. Equipment, decoration, furniture, and other amenities are provided. You don't have to worry about installing internet lines or hiring a receptionist. Most of these services are included in your monthly rent.

Co-working spaces are often designed to encourage collaboration and creativity. Team members can use the space for different projects effectively.

CHOOSING THE BEST OFFICE SPACE TO RENT

Finding office space to rent is an important step. Before starting to look for potential premises, consider the above points.