Tips for First-Time Office Renters

So What’s Your Plan?

Are you a first time renter and currently looking for office space?   Here are some helpful tips on how it works.

Many businesses begin operations from the owner’s home. Although it may constitute a zoning violation to operate a business in a residential district, a small home business carefully operated is a good starting point.

A new business should have a business plan. Most Chambers of Commerce are associated with a Business Development Centers and the Small Business Administration.  The SBA. will assist you in developing a business plan which can be very helpful.  The cost is minimal.  Once the business is up and running or if the nature of the business demands an office, the hunt for appropriate office space begins.

Location, location…

If you are a new business, a well known address will add credibility to your company. Could any business located in Rockefeller Center be bad? An exaggeration of course, but you get the idea. If your an established business, you probably are already well known, so location is less critical, but not unimportant.

Office buildings are classified in the industry as either A, B, or C.  In between are the + and – of each category.  Class A is the top notch best building with all the modern amenities.  Class B might be older building maintained in first class condition.  Class C buildings are those that either have not been well maintained or may be so old as to be functionally obsolete.

The location for your business depends on local custom. In small cities, retail is always first floor and offices are usually upper story, although they can be first floor if properly done.  Service businesses, which deal with the public only by phone, fax or email, can be on a lower floor, particularly if there is a service component such as a computer repair shop.  If the service business deals with the public, it should have a street presence.

If your business does not involve customers coming to your office, you can select the building that offers the best package at the lowest price.  However, make sure that the life safety systems (sprinkler, smoke and heat detectors, functional stairwells) are all in place and operating.

Talk to a few tenants in the building and get a sense of how operations are done.   Look for an owner office on site or professional management by a CPM (Certified Property Manager) or AMO (Accredited Management Organization) firm.

The next step is space planning.  Think about the number of rooms you need, how the room occupants interact with one another and major office equipment.  A competent building manager will be able to create an office design  based on your needs.

Negotiating the lease.  Lease rates are based on the operating needs of the building and the improvements or changes you require to make the available space into your office.  Depending on the length of the lease and required improvements, you may be asked to contribute some funds to the contract.

First Things First

Does the building have curb appeal? Does it present an image complementary to your business.Is it in the right location for your business. Lawyers traditionally want to be close to the courthouse, doctors want to be near a hospital, and so on.

Does the building offer the amenities you need; parking, high-speed Internet?.  How is maintenance handled. Is there on site staff? How about after hours emergencies?  How is management handled. Is there a management company, or is it a Mom and Pop operation (not necessarily bad.)

Your office/store

Can the space be modified to suit your needs; walls moved, rooms created?   Will management prepare a plan of the finished space. Will they come to your office to evaluate your operation, furniture and equipment and create a plan to fit you.

Who will pay for the renovations?

Can you select paint and carpet?

The Documents

What is the length of the lease?  Are their charges other than monthly rent?  How are rent changes implemented?  Talk to the existing building tenants if possible. They will provide you with the best references.

A long lease precludes the possibility that you will be asked to move.  At the same time, a new business may want to have an out during the first year of the lease in the event that things don’t go as planned.