Tag Archives: office rental

Office Space Planning: What Your Space Says About Your Company

Your office space planning & design reveals a lot about your company–to both employees and customers. While connecting floors with a giant slide like Google may not be affordable or functional for your group, chances are you could use an upgrade. Excite your team with a new and improved design in your office space planning! Express your vision; start with these ideas when searching for your new digs.

  • Room to grow: It’s better to have a bit more space than not enough. A crowded office complex with a cramped connecting hallway not only feels claustrophobic, it stifles creativity. By giving your company extra room, you’re saying, “We are on the grow!”
  • Easy to access: You’ve got posh new headquarters but unfortunately, HQ is located a few hours away from home. Your key players have to spend a significant amount of time on the road–just to come to work. When selecting a new office space, consider the commute. Show your team some “love” by choosing an office space that isn’t at the opposite end of a gauntlet or at least implement a teleworking policy that would permit flexible commuting. Also, think about the parking situation. Your office setup needs to have an easy to locate entrance and exit that doesn’t require a hike to get there.
  • A clear flow of traffic: If you were a stranger visiting your office, would you be able to navigate the workflow areas without a map. It doesn’t take a rocket scientist to determine that visitors should be met by a reception area, not walk into the fulfillment warehouse. Still, there are more subtle traffic concerns to consider. For example, if your company has started the new year with a significant investment in public relations, shouldn’t this department be located closely to management? Also, think about walking a document through an average purchasing process. Bottom line–your flow of traffic decisions should be practical and make sense.
  • Achieve the right balance:When clients arrive at the business, they want to see success and a professional environment, not question where their money is going. Your office space design should encourage confidence, but not create a cause for concern.

Office space planning and design takes some care and time. Let us help you begin the search for an office you’ll be proud of! Contact Us to us today. We’d love to help!

Office Space Predictions For 2014

In a recent quarterly commercial real estate forecast from the National Association of Realtors, they are predicting that the office space market in the US will see only slight improvement over the next year with a small, .2%, reduction in the office vacancy rate and a modest 2.5% increase in rental rates.

Specifically, here is what they reported on the Office Space Market:

“Office Markets
Vacancy rates in the office sector are expected to decline from a projected 15.6 percent in the fourth quarter to 15.4 percent in the fourth quarter of 2014.

The markets with the lowest office vacancy rates presently (in the fourth quarter) are New York City, with a vacancy rate of 9.8 percent; Washington, D.C., at 9.9 percent; Little Rock, Ark., 12.0 percent; and Nashville, Tenn., 12.9 percent.

Office rents should increase 2.4 percent this year and 2.5 percent in 2014. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is seen at 32.2 million square feet this year and 46.1 million in 2014.”

The Basic Steps to Getting Your Ideal Office Rental

Renting an office space is not rocket science and does not have to be an overwhelming proposal; simply work your way through these basic steps, allow enough time, get help when you need it and you’ve got your ideal office rental!

  1. Calculate how much space you need. Use our office space calculator or plan on around 175 – 200 sq. feet for each employee. It includes a typical allocation for meeting rooms, kitchen space, etc.
  2. Identify your budget, including an ideal range and an absolute upper limit. Remember that  there are other occupancy expenses, other than rent, that go into an office rental. In fact, they are usually equal to the rental amount for the office space. These include telephones, internet, insurance, utilities (depending on the type of lease you sign), tenant improvements, property and excise taxes and the like.
  3. Make a list of location preferences and prioritize them. Think about the best location for your employees, clients, deliveries, etc.
  4. Search for available office space that match your space, budget, and location needs. Be as thorough as possible in this step. (This is a great time to call in the experts at OfficeFinder!)
  5. Determine the length of your office rental: short-term or long-term, number of months, etc.
  6. Issue requests for proposals to be able to compare floor plans, prices, and other details of your top three spaces, weighing the pros and cons of each one.
  7. Choose the space that offers you the best fit for your company and begin negotiations! this is where have a qualified office tenant representative on your side really makes a difference. They do a lot more than just find space. They make sure you get the best deal possible and they don’t cost you anything to engage their services.
  8. Have an attorney and experience real estate broker review your rental agreement before you sign it. You want to avoid any costly mistakes, don’t you?
  9. Get any tenant improvements constructed and you are ready to move in. Congratulations.

It is important, at the beginning of the process, to write down a list of needs and preferences for your rental space. Checkout our office space planning checklist to make sure you don’t miss anything. Determine the items you cannot negotiate, and also the items you will be willing to compromise on. Identify your dream space and also what will simply meet your needs and allow your business to function at a high level.

Contact us today to ask your questions and find the ideal office rental space for your business!

The office rental process in more detail.

Expansion Office Lease Clause – Know What You Are Getting

You are negotiating an office lease with the landlord for the office space you have decided you would like to lease or rent. Your letter of intent, outlining the business terms, includes  an expansion option to meet your growth expectations. Hopefully you have a good office tenant representative, like the ones we have at OfficeFinder, to help you through the process. In any case, you need to understand the different types of office lease expansion options available to you. It sounds simple, but it is not.

Was the agreement for a ROFN, ROFO, ROFR or Pocket Space? They are all expansion options, but mean very different things and will subject you to very different rights under your office lease.

ROFN – Right of First Negotiation gives the Tenant very few rights other than to negotiate a new deal with the landlord. You can be assured of the expansion capability so long as you are willing to agree to whatever the Landlord is asking. In other words, you pretty much have no rights.

ROFO – Right of First Offer or Opportunity. This also give the Tenant very few rights. It simply means that you get the opportunity to be first in line to negotiate with he landlord, but once again, you are still at the mercy of the landlord and the terms he wants.

ROFR – Right of First Refusal does provide the Tenant with rights. Specifically the right to match a bona fide offer to lease within a certain period of time. This is the best option so far. you get an opportunity to meet the terms that a 3rd party is wiling to pay for the space, guaranteeing that you will get a market deal of the expansion office space.

Pocket Space is space that the Tenant commits to take either after a period of time or when they start to use it and is generally included as a part of the original office space premises. This option is good for you only if you are sure you will be growing into the additional space within the time period specified or sooner, usually within a year or two, or when you start to use the space, whichever occurs first. This can be a good option for fast growing companies by providing them with the flexibility they need to expand.

Having a clear understanding of these various terms will help ensure you are getting the office space expansion option you think you are getting. These various types of expansion options vary market by market and vary based upon market conditions. Contact us to engage the services of an experienced office tenant rep who knows the market and what options are available. It won’t cost you anything, but will save you from making costly mistakes and also ensure you get the best deal possible.

Find A Good Tenant Rep

Biggest Mistakes Office Tenants Make When Looking to Rent Office Space

Over the years we have posted lots of information about the mistakes that office tenants most frequently make. A big one is thinking that the landlord’s listing agent will look out for their best interest when they’re looking for office space for rent or lease. They won’t. They have a responsibility to the office space manager or landlord to get them the best deal possible. They have a contract that says so. If a listing agent tells you otherwise, beware.

Price is not the only issue you need to be concerned about. The terms of the lease can have a huge impact on your cost and ability to avoid mistakes that will end up biting you in the rear.

So where does that leave the office space tenant looking for office space? Set up for another big mistake – not having your own agent who knows the market and the business as your office tenant representative. In the US and Canada it won’t cost you anything. In fact, it will save you money by ensuring you get the best deal possible and avoid costly mistakes. A good tenant rep, like the ones at OfficeFinder,  represents office tenants every day. They  negotiate leases for a living, while chances are you will only have to do so a half-dozen times in your business career. Who do you think will do a better job?

What we have seen over the past 10 years is a transition from business owners and managers who recognize the value of a good office tenant rep to many that think they can do it themselves and are suspect of real estate agents. This has come about from the plethora of information and listing sites on the Internet and too many unqualified agents claiming to be good office tenant reps.

What you see on the Internet related to available space is only the tip of the iceberg and much of it is simply out of date or wrong. There is no way to really determine the deal points of recent office rentals or leases from information on the Internet. The only way to really get good information is from someone who is in the business day-to-day.

So, if you want to rent office space and get the best deal possible, avoid costly mistakes and have a hassle free experience. Engage the services of a qualified tenant Rep.

More on Office Leasing | More on Office Rental

The 3 Biggest Mistakes Tenants Make (SlideShare)

What To Look For In Your Office Rental

When looking at an office rental space, it is clearly important to consider what kind of place you really want to have. It has to be a good balance of needs and wants in the space in order to make it perfect. The business owner has to consider things like how much money he or she has to spend on an office rental, but it is more than that. Other factors such as space requirements and employee morale have to be weighed in as well.

In an entrepreneur.com article, author Christopher Hann quoting a man named Bill Armstrong, treasurer of the National Association of Realtors, when he says:

“If you lease more space than your business requires, your monthly rent could consume an excessive chunk of your precious resources. If you’re a startup, you’ll want to account for future growth. But how much? Be thrifty.”

That speaks to the point that one must think about how much office space they honestly need to rent in order to keep their operations running.

Once a reasonably priced office rental space has been located, it is important to lock in what kind of layout and design you are going to approach for your office. Some of the existing layout may well work for you to get certain things accomplished, but it may not work out exactly as you had hoped in the long run. It is important to consider all of these factors and think about if this is something that you want to stick with.

An office rental is important to every business owner because this is the centralized location where one will be doing all of their work. It is where workers will come in for perhaps years to come. Give it plenty of thought and find the place that is going to fit your needs just right.

It makes sense to get assistance from a professional office space tenant representative like the ones we have at OfficeFinder. It is a free service to you. Contact us about any questions you may have about how to find the perfect office space.