Choosing the right office space for your business is not a decision to be taken lightly. The wrong location can cause lasting damage to your profit margin due to client loss, leasing issues or other problems.
Most landlords prefer at least a three year lease, so your decision must not only be based on your current needs, but also on the future needs of your business.
To assist with the decision-making process, carefully consider the following questions when choosing a new office location:
1. Am I already in the right location?
This is the number one question you need to ask yourself before delving into the process of looking for a new office space. What is the reason for your move? Have you outgrown your current space with the number of additional staff members you’ve hired to accommodate recent growth? In addition, consider the geographical area of your current office. You might want to try to stay in the same area if you feel you are already in a good location. Consider your clients as well as your employees. Is your current location convenient for both? If you’ve experienced recent growth, maybe the area you are in has something to do with that. The City of Chicago is home to a large, diversified economy and workforce, with more than 400 corporate headquarters. Your business will most likely continue to thrive in an environment such as this.
2. Is my space the adequate size?
This question goes back to the issue of growth. When choosing a new office space, it’s important to consider future potential growth. Giving yourself room to grow is the best way to ensure that it actually happens. However, not all business owners can afford to rent a property that will allow for growth that has yet to happen. If this is the case for you, then choose a place adequate for your current needs, but try to negotiate a shorter lease term with your landlord. This way, you aren’t stuck in a spot that becomes too small after a year or so.
3. Is this a convenient location for clients?
With the costs of transportation on an upward climb, this is one of the most important questions to ask yourself while making the decision to move your business. As mentioned above, Chicago is a thriving city, with multiple corporations stationed in the heart of the city. If you’re thinking about moving from this hub to a place outside of the city, consider what transportation options your clients will have to be able to reach you. The less expensive rent may not be worth losing clients over. Even with technology such as Skype and online meetings, there is still something to be said for the value of face-to-face interactions.
4. How secure is the lease?
With the real estate market rebounding significantly, rental costs are increasing for business owners. Because of this, there is a danger of getting to the end of your lease to find that the landlord has agreed to rent your space to someone else at a higher price, and you are forced to move again. To avoid situations like this, be sure to work into your original lease agreement the option for you to renew at the end of your contract. In addition, try to negotiate a cap on the rent increase the landlord is able to incorporate upon renewal. This will ensure that both parties feel comfortable going into the arrangement. Here are a few other questions should you ask your office lease provider.
5. Am I comfortable with my current cost for office and infrastructure?
Finding a price you are comfortable with is vital to the future success of your business. Do you want to stay around the same price you’re currently paying? If not, what is the percentage increase you are able to afford for office and infrastructure? Work out these numbers before you even begin looking for a new space, so that you know going into each potential lease what you’re willing to work with. One thing to make sure of is that you are at or below market value.
6. Is parking an issue?
What is the parking situation you’re willing to accommodate? You should consider the cost and convenience of parking for both your employees and clients, as well as potential clients. If any of these groups have to pay more than they think is necessary to park, or if they are forced to walk a long distance from their parking spots to your office, they may consider taking their employment or business elsewhere.
Deciding whether a physical move is the right thing for your business is not a simple process. There are several factors to consider, but as long as you’ve asked the right questions and have come up with answers you feel comfortable with, you can rest assured that you’ve made the right decision.
