Locating the right office space is a major challenge for any business – especially small, growing companies that don’t actually know how much space they’ll need over the next few years. Your office space could be stopping you from succeeding, so let’s look at some of the factors to keep in mind when you’re searching for your next office.

Time (Term of your Lease)

This is one of the most important things to keep in mind. If your business only has ten employees, then you may not be thinking about an office that’s large enough to hold fifty or sixty people in it. However, if hyper growth is a potential – you could be – which is why it’s important to avoid getting locked into a lease that’s longer than you need.

Your goal is to find the right balance between what you need and what you can afford – and don’t forget that the money you save by leasing a smaller office may be offset by the cost of frequent moves.

Layout (Amount of Space)

The layout of your office space is another important factor to consider. Some landlords are very willing to let you put up additional walls, while others want the office kept in the exact same condition. Either way, you’ll want a layout that matches your needs.

• Creative Companies, including nearly everything in the technological field, will usually do better if they have a large, open space. This allows for employees to move around and collaborate easier, without the restricting effects of cubicles.
• Professional Services, like law firms and accounting, will still be able to benefit from the traditional office style. An office layout is particularly valuable if you need to meet with customers in person – but you will have to decide how much of the space will be ‘public’ and how much room you’ll have away from the eyes of your visitors.

A good rule of thumb to follow is the more your employees will be working together, the more open space your office should have. Let the form follow the function – under no circumstances should you be reducing the effectiveness of your employees just to conform to the building’s design.

Location

This is a big one – the location of an office can play a major role in its overall success, and it’s not just about the opinions that customers have when they come to visit. Here are some common problems that could be hindering your operations right now:

• Image: Offices in poorly-maintained areas can lower employee morale or limit your ability to attract the right staff for growth.
• Security: Most employees – even highly-motivated ones – aren’t willing to work late if they feel the area is too dangerous past a certain hour.
• Size: If the office isn’t big enough, companies often find themselves renting out temporary space – which is both costly and unproductive.
• Infrastructure: Slow elevators, a low number of lavatories, and even a lack of kitchen space can all contribute to making it harder for people to do their jobs (particularly if you’re on more than one floor of the building).

Most location issues aren’t a huge problem all by themselves, but areas with one of these issues will usually have more. However, you should be careful to avoid falling for the idea that “newer is always better” in office spaces. The important thing is finding a location that meets your needs, regardless of whether you’re the first renter or the fifteenth.

Price (Rent and True Cost)

Don’t think about how much you’re willing to spend for each person on your team. Instead, focus on the amount you can pay each month for your entire team – this is a much better way to determine what kind of office space you can afford. If you find that you’re willing to spend quite a bit more than you currently are, then that’s a good sign that it’s time to move.

Remember to count the hidden costs when making this estimate – utilities, office fees, furniture, and everything else should be wrapped into the total amount you’re willing to pay. Overlooking these could lead to renting an office that’s more expensive than you wanted, and that in turn means less money for running your business.

Final Thoughts

The last thing you want to do is lease a space for five years and find out twelve months in that it doesn’t meet your needs. Most companies recognize when their current office is inadequate, but that’s no reason to rush for the first open space you see – take your time, consult with the professionals, and focus on the long-term needs of your company. If you don’t, you could find yourself experiencing the same problems all over again. It’s better to spend three months studying your options than three years regretting the choice you made.

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