As fixed commitments go, renting office space is one largest ones there are, especially for small businesses.
First-time renters and teams which are experiencing positive, but unprecedented growth often make decisions about where to work quickly. This is perfectly understandable. They want to focus on delivering good work, after all.
Unfortunately, many overlook important and costly factors such as:
Lease implications
Ongoing costs
How their space needs may change
To help you avoid overlooking these issues, and others you may not have considered, we’ve put together a practical, no-nonsense guide that will help you avoid common mistakes and give you the confidence to commit to the right space.
This isn’t an exhaustive property manual. We’re focusing on the factors that most directly affect the things that matter to your business.
The right office space is so much more than just the physical space where your team can work. It will be an environment that seamlessly supports the day-to-day activities of your team, as well as their well-being.
For client-facing businesses, the office environment is the backdrop for important meetings and projects. It’s the reassuring first impression that gives decision-makers peace of mind, knowing they’re working with the right people.
Office choice can either support growth and plans, or it can create friction, becoming, in some instances, a physical roadblock.
Your next office should enable things, not be something that projects a certain status.
The factors presented here are based on real issues that businesses, having spoken with our team, commonly encounter after signing an office lease agreement.
The following four sections are areas where poor decisions tend to be costly or difficult to reverse in some instances.
The most prestigious office space may not be the most practical, and it’s the latter which should be favoured for businesses considering a new home. How easily accessible the office is for employees should be prioritised, maybe just slightly ahead of how clients or visitors will reach the space.
As well as access, other factors must be thought of, such as:
The availability of parking either in the building or nearby, and how much it costs.
Where the nearest train or bus station is for employees looking to keep commuting costs to a minimum.
Proximity to lunch spots, coffee shops, and bars.
Location has a huge effect on attendance and punctuality. If teams know they can access the office easily, not have to spend an unreasonable amount on commuting or parking, and buy a nice lunch, they’ll attend more often and be more satisfied when they are there.
In-person meetings with clients also get off to a good start if they’ve had a pleasant, stress-free journey. And while many may think that the city centre is the automatic choice, the focus should be on sustainability for the business and its teams.
The cost to rent any office space is just one of many outgoing expenses associated with having a permanent base for your business. Unless you are taking a fully serviced office that will include everything, you may have some expenses that you didn’t foresee such as –
Service charges are often included at the last minute, so be sure to review them and what they cover.
Additional needs, such as utilities, internet, and cleaning, may need to be sourced by your business.
As well as those key factors that need to be budgeted for, other hidden costs crop up from time to time, too. Meeting room charges, for instance, can add up during periods where pitching or client meetings are high. Choose an office where businesses can get preferential rates. It may sound trivial, but parking fees are one of those small costs that add significantly to the true monthly cost of renting an office space.
These costs can, if not considered properly, impact cash flow and future planning if not clearly mapped out.
Rigid leasing structures that lock businesses in directly affect their ability to grow or adjust based on different workflows. It’s often framed as a legal issue, but it is in fact something that should be considered as something which affects medium- to long-term planning.
If not considered, lease lengths can tie firms down to spaces that they may well outgrow. And if break clauses are unreasonably long, they can find themselves hitting a literal growth ceiling.
Notice periods can also stall growth, forcing businesses to pay for a space that they no longer want. During transitions, they can end up paying for two office spaces, too.
Committing too early to long or inflexible terms can hamper operations later down the road when businesses want to either scale up or down. Similarly, if working patterns change or businesses want to downsize, a rigid contract can force them to keep paying for spaces that aren’t used.
When it comes to the things a business can use and the space in which they operate, there are often a lot of things they unfortunately realise after they’ve moved in.
While there might be meeting rooms available, these may not have the necessary audio and visual equipment needed for hybrid calls with team members who are working from home.
A business might have been sold super-fast wifi but when it comes to the crunch and two dozen people are using it, it may not be able to handle that level of usage.
Desk spaces may be plentiful, but there might not be a sufficient amount of collaborative areas or quiet spaces for when more focused work is needed.
When it comes to the layout, it may be able to support the current team of 12, for instance, but there may not be the room or flexibility (be that in the contract or in the building itself) to accommodate changes or adjustments that can open it out to accommodate another 5, 6, or 7 people.
Sure, nice to have features are just that, nice, but usability should always be the priority. No amount of hot water taps or living walls can make up for a fundamental lack of space to grow.
Choosing based on price alone: As we’ve discussed, the headline rent price is just the tip of the iceberg. A cheaper space may not always be the best option if you don’t have access to meeting rooms or the ability to host clients. And once you’re locked in, it’s not something that can be reversed in the short or medium term.
Underestimating growth or changing work patterns: Your business in three years may look unrecognisable from the one it is today, and by failing to consider that, you risk being in a space that will no longer reflect your business or how your team works.
Overlooking lease restrictions: Leases come with small print that, if not reviewed properly, can limit your ability to alter your office space to reflect new developments. There is a real risk that your office space could stop you from being able to grab profitable opportunities or hire a raft of new talent.
Not clarifying maintenance or repair responsibilities: When the boiler breaks in the middle of December, it can be a costly fix if you’ve not reviewed the lease terms and understood who is responsible for fixing it. Not clarifying responsibilities early on is a costly mistake that can see you draining vital cash reserves.
So, you know now what to look for, as well as the dangers of not doing proper due diligence. The next step is to start exploring new office space opportunities.
To help with that early exploration, we’ve put together a handy, practical checklist that you can return to ensure you’re covering all bases.
What are the additional costs other than the rent, and do they increase over time?
Who is responsible for maintenance and repairs?
Are there any restrictions regarding fit-outs, branding, or layouts?
How secure is the building, and how easily can team members access the office as and when they need to?
What are our options for expanding the space or downsizing if business changes?
The Base is home to extensive Grade A office spaces ideal for first-time renters or growing teams looking to find a place to call home.
We know how quickly businesses can change, which is why we offer spaces that can reflect where you are right now, and in the years to come.
We’ve helped a wide range of tenants focus on their business operations, not office headaches, and the insights gained from them have only helped how we help future tenants.
Informed decisions that focus on both the here and now and the future are priceless. Think beyond immediate needs and view your next office space as a place where your business can grow rather than just be.
01925909777
info@thebasewarrington.co.uk
The Base, Dallam Lane, Warrington WA2 7NGOn behalf of
