Six Things to Avoid When Renting Commercial Space for Your Business
Finding the right commercial space to establish your business can be a tricky endeavor, especially with many factors to consider, like location, area size, and rental fees. But what can you do to avoid falling into pit traps that can force you to commit to unwanted obligations?
I have listed down below 6 things you should consider to avoid these mistakes.
Not Knowing What Your Business Needs Is Reckless
The first thing you need to avoid is committing to an office space that is too far from the residence of your key employees. Discuss with key employees when selecting the next business location.
Check that the location has all the necessary amenities, especially if you are renting an office space outside the central region. How about air-conditioners after standard office hours? What happen if your team is require to work late through the evening? To do this right, make a list of all the things that your business requires. List down what it needs now and what items it might expect for a future expansion.
Renting the Wrong Space Can Either Be Limiting or Wasteful
The total floor area required to operate a business comfortably is sometimes miscalculated. No companies can lease a space that is too small or too large for what the business really needs.
Lack of space means that you would probably need to sacrifice some areas such as the breakout area which you planned to have or downsize the meeting rooms, reception area or even the private offices of managers. And too big a floor area means unused space and more money down the drain on rental fees.
Not having enough space from the start may result in the need to acquire another office space before the lease expired. There’s also the risk of not able to find a second office space in the same building when more space is needed.
The following are things that you should remember when deciding on the right floor area:
- Determine the floor area you need with the help of commercial property agent
- Consider projected number of staff to be hired now and in the future
- Get a floor plan from the landlord to test fit the layout before committing the lease
Misjudging Business Requirements Can Be Costly
Many businesses move from traditional offices to Serviced and Flexible offices. The assumption by most business owners is that they will have the same requirements as their current location. However, this is not the case at the most. Common areas like meeting rooms, pantry, receptionists, and others are examples of these. The beauty of serviced and flexible offices is that these facilities already come with the new location and can be paid on an ad-hoc basis.
As for the reverse, moving from flexible offices to traditional offices, the problem is even more pronounced. The following are some of the issues that can arise when making this move.
- Office size requirements
- Facilities required
- Additional costs like security deposit and fitting out the space
- Transition time required
- Office Security
- Ancillary staff requirements.
Signing Up for Unnecessary Perks
Commercial spaces offer a variety of perks, and the ever-growing competitive business environment only exacerbates this. So much like any other product, these perks can include luxurious items like gaming areas, sport facilities, custom furnishings, loud and outspoken themes. While these are great for the employees as these luxuries provide them a place and time to relax during downtimes, this is also a premium the business will have to account in their rental fees. It’s already too late when the company realizes it’s paying for things that don’t add that much to the business after signing the dotted line.
Not Hiring a commercial Property Agent
Searching for a space to rent on your own is relatively easy nowadays with the Internet’s availability. A user can be presented with a variety of options. The objective of a business is to make money, and what better way to do that by saving by not hiring an experienced commercial property agent.
Right?
Wrong!
Having a commercial property agent with a keen eye for a suitable location will save the business owner all the unnecessary hassle of renting a space that turns out to be the wrong kind. Your property agent also tend to collect their commission from the landlord or the leasing agent and not you, the tenant.
A commercial property agent with expertise in office space finding will need to know what the business requires to operate and will compile a list of potential locations. This, along with the benefits and liabilities of each location.
A good commercial property agent will also be objective when picking a location and won’t be quickly enamored by a site just because it has a great view of the Marina Bay. If the business owner will do the picking and gets too excited, there’s a good chance they might end up renting a space for the view it offers rather than what the business needs.
No Need Knowing Jargons
Unless you are knowledgeable about renting commercial spaces, you will be at a disadvantage when negotiating with your landlord. But with a commercial property agent by your side, you’ll have guidance in understanding complicated topics and the negotiation process. Without the help of a highly experienced commercial property agent, you might just yes to things in your lease contract, you don’t fully understand, and that can lead to paying unwanted obligations in the future.
