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Key Principles to Consider when Choosing Office Space

Choosing a new property for your business can be a real minefield. By addressing these key principles you will be able to make better and informed decisions about which space is best for your company.

Cost is obviously a primary factor that determines whether or not the rent is affordable. The cost of office space will be determined primarily by the size (cost per square foot) and the location. It be challenging getting the right balance between the right size office, in a location that suits your clients and staff. Talk to your Tenant Rep Broker about your options and help you prioritize your needs. It's essential that you determine all the costs associated with leasing the space. For example utilities costs, ongoing maintenance of the premises and any increase in your total operating costs. Use the Moving Office Budget Template to work out your finances when relocating and choosing new space, you don't want any unexpected surprises.

You must know the maximum and minimum amount of square footage that fits your needs, and factor in enough space for recruiting additional staff. To help you calculate the ideal sized office to suit your needs, use this handy Office Space Calculator.

Market Conditions
The real estate market is continually evolving, and you need to have a good grasp of what likely rents are being achieved in your desired location, as well as the type of lease terms that are being agreed. Your Tenant Rep Broker will have a good understanding of this and will work towards securing a lease arrangement that meets your financial limitations and is also competitive as far as the economies of the market is concerned.

Quality and Style of the Space
Make sure the office you choose sends the right signal. What impression do you want to give to clients and those who visit your premises? Corporate? Trendy? Savvy? Friendly?. The style of the building, location and design of the space are all contributing factors to your corporate image.

Length of Lease
It's important to opt for a length of lease that is going to give you stability and financial security. If you are a relatively new business, opting for a lease length for longer than 5 years might be too risky. It's always safer to go for a shorter office lease that can be renewed at expiry. If this is case, it might be an idea to negotiate a cap on any rental increase at renewal to avoid being faced with higher rent charges if you decide to stay put. Make sure your consider all the issues within the Office Space Checklist before signing on the dotted line.


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