Commercial real estate is an outdated industry to say the least. Take a look at this article from the Harvard Business Review for example, it was written nearly 30 years ago and STILL applies today…
Everything we rely on in business seems to evolve with us. The birth of SaaS, for example, afforded us endless agility to help mitigate operating expenses. Real estate, on the other hand, is riddled with processes and cost structures fit for dinosaurs.
The good news? There are emerging businesses out there fighting the good fight. Teams like TheSquareFoot who are applying technology to the problem in order to help drive commercial real estate into the present.
When it comes to innovation in CRE, these guys do it best, which is why I’m teaming up with them to dispel the secrets to leasing office space the commercial real estate industry doesn’t want you to know.
In the meantime, check out their advice on how to work with traditional real estate:
The right office is integral to the success of your company, but finding the right office isn’t easy. Identifying these five typical problems in the office search will give you a better chance of finding the perfect space.
Miscalculating company growth
There are a few ways to miscalculate company growth, and all of them result in undesirable scenarios. If you anticipate growth that’s faster than what’s realistically possible, you’ll lease an office that’s too big for you, and thus waste money on space you aren’t using. In this case, there are, however, plenty of opportunities to sublease your extra space to another company. There are also communal space services that will let you rent out parts of your space for short and long terms, offering you a high degree of flexibility.
If you lowball your company’s growth, then you’ll be stuck in a space (and lease) that can’t accommodate your company. Your team may not work effectively if they don’t have enough space. Subleasing the entire space is your best option here too, as it will allow you to relocate to a bigger option. Plan to have at least 100 sq/ft (and up to 225 sq/ft) for each person at your company.
Underestimating the total cost
People do this all the time—they look at rent and think that’s all they’ll pay to use a space. It’s not. After factoring in things like utilities and maintenance, the total monthly cost may be markedly different from the dollar amount you see on your lease. In older buildings, these extra costs can build up fast. See exactly what you’ll need to spend money on to make your space “work-ready” and leave some wiggle room for unexpected costs.
Overestimating what you can do on your own
So much more goes into finding a commercial space than just picking an office you like. Engineers, brokers, designers, insurance agents, and office planners can all serve their purpose in the search for an office space. Designers, for example, get discounts on—and have a lot of knowledge of—office pieces. They’ll know exactly what you’ll need, and what you won’t. Office design is about way more than just picking things that look cool. Realistically decide what you can and can’t do on your own, so you’ll be well-prepared to find and move into your new office.
Being stubborn on area
Instead of sticking with an area by intuition, define the traits you want in your office’s location. Do you want a place that’s close to transit, good for parking, or in a popular area? By deciding what you want in an area before actually choosing an area, your broker can help you find the right place for you (even if it’s somewhere you never expected).
If you can identify and fix these office search problems, you’ll save money, time, and effort while getting you and your company an office that drives success and employee satisfaction.
Join us live Tuesday, January 26th and we’ll cover this and more — plus you’ll have full access to ask us any questions you have to ensure you’re protected when it comes to committing to an office space lease.
The modern workplace is changing fast...
Are you keeping up?