- January 25, 2018
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Whether you are an investor, buyer, or a tenant, finding affordable office space without compromising the needs of your business can be a tricky endeavor. Before you embark on the journey get clear on what sort of space you need and read our list of do’s and don’ts to help you avoid common mistakes.
Do Look at Co-Working Spaces
If you are a tenant trying to find office space, co-working options may be something for you to consider. Over the past few years, these spaces have become increasingly popular, particularly in and around major cities. Not only does a co-working space provide a workable office setting at an affordable price, but it also surrounds you with a reliable network of colleagues who understand what you are going through and may be able to offer you valuable insight that will help your business grow and prosper.
Don’t Over-focus on the Rental Price
When searching for office space, it’s common to fixate on the monthly rent. Think outside of the box by using a simple formula to assess whether or not you are getting a good deal. Take your annual rent plus any estimated taxes and yearly increases and multiply this by your lease term. Deduct from that any free rent or tenant improvement capital offered by the landlord. This will give you a much more accurate idea of what your overall monthly cost will be.
Do Consider Creating a Shared Office
If you find the perfect office space but aren’t sure that you will be able to afford it, think about how you could reorganize the space to create room for another tenant. Not only will this help you cover the cost of the rent, but it will also add extra funds to put towards your running expenses such as electrical and maintenance fees.
Don’t Compromise Your Location
While finding office space in an ideal location will certainly add to the price tag, remember that there is also a reason that this particular spot is considered ideal. Areas of heavy foot traffic or areas geared towards your target market are sure to keep you visible, which will naturally add to the growth of your business. If you just can’t fit a prime location into your budget, look for up-and-coming areas that can grow with you.
Do Look for Leases to Take Over
If you are lucky enough to find an office space that the current tenant has outgrown, don’t overlook this opportunity. You will likely have much more room to negotiate when the current occupant is eager to break their lease with minimal fines.
Don’t Over or Under Compensate
When you begin the hunt for your office space, know what you need! It sounds simple but an exceedingly high number of people aren’t clear on this before they begin their search. Buying or leasing a property that either over or undercompensates for your businesses needs is like asking to pay too much. If you secure a property that is too small, you will likely be the tenant mentioned in the previous paragraph and subject yourself to potential fines if you are in a position where you need to break your lease. Agreeing to a property that is too large will keep your overhead costs significantly higher than they need to be.
Do Look for Properties That Have Been Vacant
Office space that has remained unoccupied for a lengthy amount of time will likely have much more wiggle room when it comes to negotiating a reasonable contract. Sellers and landlords obviously aren’t making money on property that is being unused, so use this to your advantage and put together an offer that can’t be refused. Do, however, also make sure to research carefully the reasons why the property has remained empty so you aren’t later blindsided with costly repairs.
Do Use a Good Broker
Securing affordable office space without compromising your business is a carefully planned procedure. Finding a well-qualified broker to help you navigate the ins and outs of the market is a surefire way to avoid overpaying on a property that you might not be happy with in the long run.
Looking for Office Space in the Baton Rouge Area?
If you are looking for guidance on your hunt for the perfect office space, SVN|Graham, Langlois, & Legendre is ready to help you from start to finish. Our experienced team of brokers has over 99 years of combined experience helping our clients get the most out of their commercial real estate investments. Work with the best to ensure the best results. Take a look at our properties today and call us to get your search started!