Should I Stay or Should I Go?
A Brief Guide to Considering Office Space & the Leasing Process for Your Business
If you are occupying an office space (or considering leasing an office space), how do you wish this space would serve you? In what ways can it be better? This guide is intended to pull back the curtain on the office leasing process for those who are new and may be uncertain of the process or just for the curious. In this and subsequent articles, we intend to provide an orientation for those who find themselves considering the myriad questions that arise from the need for space, but do not know where to begin. This is not intended to be a comprehensive academic approach, but a user friendly compilation of suggestions and explanations to a process that may at first seem overwhelming. This is also not intended to replace professional real estate advisory services. Rather, it explains why those services are helpful and, in some cases, essential.
First, determine whether or not to relocate. This is most easily done once you have a strong understanding of your company and its future. Here is a list of questions that may assist you to better identify your needs.
Beginning Questions
The first step is to think deeply about your needs.
About your current space
- How is the space serving you?
- In what ways can it be better?
- What would improve efficiency?
- Does the current floor plan maximize the utilization of your office?
- How do your employees interact?
- Do your employees use collaborative space?
- Would traditional 8’ by 8’ cubicles along with informal group spaces facilitate their work?
- How does your current space aid or inhibit your workflow?
- Why does your company work the way it does? If the answer is “because that’s the way we’ve always done it,” this may be a good time to reevaluate that process.
- What is your best option to improve your workspace in order to improve your performance?
- Do you renovate your current space?
- Expand into another part of your current building?
- Relocate altogether?
- Do your lease terms appropriately reflect the market?
- How does the Covid-19 virus alter your work environment?
About a new space
- Are you occupying and paying for more space than you need on a daily basis?
- Are you bursting at the seams? Is it time to expand into a larger space?
- Does the location promote the brand image you wish to project?
- Are there certain amenities which would attract your company to move?
- Would it be worth moving to a region with highly rated school systems or other worthwhile amenities in order to attract or retain a skilled workforce?
What priority ranks highest for your space needs?
- Cost, price per square foot, and your bottom line?
- Prestige?
- Attracting or retaining a certain workforce?
- Accessibility to major transportation hubs?
Once you have considered these aspects of your current space and lease, you can then set forth your goals.
We will first examine Remaining in Your Current Space. Do you need to relocate at all? Perhaps one of the easiest options is to stay with your current landlord and location. If your lease is coming up for renewal in the next year or two, this is a good time to reevaluate. It may be worth consulting with a real estate professional to evaluate the market and your current lease terms. Rental rate, especially operating expenses, HVAC systems, tenant improvements, and more efficient layout are all things to discuss. The purpose is to improve your workflow in order to achieve the most from your space and location. Even if you are sure you want to stay in your current location, it may help to gain some perspective by looking at other spaces and options that other properties provide. Ultimately, a lease expiration is an opportunity to examine why your company works the way it does. Is it just because “that’s the way we’ve always done it” or is there a reason that once made sense and is now defunct, but the process is still the same?
Perhaps by looking into the market and your needs, you decide to Relocate. While there are many reasons to relocate, we will focus on three: expansion, downsizing, and prestige. The better you understand your motives and needs, the better equipped you will be to relocate. This will allow you to recognize your new space when you see it, and to know right away if a space will not work for your company.
We will explore all of these options in greater detail in the coming posts. To sign up for blog post notifications, please enter your email address here. You can also subscribe to receive notifications from WHPounds Commercial Real Estate, LLC, including information on office market happenings, by clicking here or subscribing through the company’s homepage www.whprealty.com. Your email address will not be shared.
WHPounds Commercial Real Estate, LLC is a commercial real estate agency located in Pennsauken, New Jersey. Founded and owned by William H. Pounds, II, its Broker-of-Record, the company has assisted in the leasing, purchasing, or sale of over 15 million square feet in Southern New Jersey. As a boutique agency, WHPounds provides a range of services, including asset management under WHPounds CRE Management, LLC.
Disclaimer: The information herein contained is in no way meant to substitute for competent, professional real estate and legal services and/or advice for the commercial or residential real estate market in your area, which may or may not conduct commercial or residential real estate transactions in a way similarly described in this blog series. WHPounds Commercial Real Estate, LLC and/or its agents is/are in no way responsible for poor decisions made or the making of poor decisions, which may or may not be based on the information contained within this blog series. WHPounds Commercial Real Estate LLC and/or its agents strongly recommend the employment of proper, competent, and professional real estate and legal services for the leasing or purchasing of a commercial or residential property.
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