Choosing the Right Office Space for Future Business Growth

Published: 07-05-24    Category: Insight

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

The inside of an office space lobby.

There's nothing quite like turning a dream into reality, especially if you're an entrepreneur setting up your first office. Choosing the right commercial space can do much more than just accelerate your company's growth.

Even though you may start out with a single partner or on your own, you're probably planning to expand as business takes off and your profits grow.

Ideally, you'll be able to manage that initial expansion in your first office space without having to find new, larger premises.

Here, we'll introduce you to basic startup office space considerations so you can choose the right office space for your immediate and future needs.

Not only will it be a smart economic move, but it'll also help you retain staff.

What's Your Best First Nest?

We'll look at factors like scalability, which will help you find an initial space that can house additional staff and/or office systems with minor changes. Other important tasks include researching favorable locations for your customers and employees.

Fostering a positive company culture is also essential, even if only two or three of you exist. While this can be achieved in almost any workplace, some locations can make this easier than others.

By considering these startup office space considerations, you'll be ready to make decisions that support your long-term business goals.

Let's look at scalability first.

Planning for Future Growth

One factor in choosing the right commercial space is considering your business's future potential for growth. While it may be tempting to opt for a smaller, more affordable space, this decision could lead to an expensive relocation before you're ready.

When evaluating potential office spaces, ask yourself these questions:

  • Does this space allow for team expansion without crowding?
  • Will my landlord offer options to lease additional adjacent spaces?

When you begin looking at offices, look for spaces that provide flexible layouts and lease terms.

Some landlords may be willing to offer you a lease with an option for expanding into adjacent spaces (if and when they're vacant) or shorter-term leases with renewal options.

Now, let's look at your next task: scouting for your office location.

Prime Positioning Pays

As with any other type of real estate, location plays a major role in your business's success. A carefully chosen office location will reward you with more employee and client satisfaction, which can fuel business growth.

When comparing commercial office spaces, evaluate the following:

  • Accessibility: Is the office easily reachable by public transportation and major highways? This factor is crucial for both employees and clients. Parking is also important. Nobody wants to circle your office block eight or nine times before finding a parking spot.
  • Amenities: Are there restaurants or cafes in the building or nearby? What about gyms, parks, and trails? These make working for you a better experience. For example, who wouldn't enjoy a walk in a park during lunch hours when the weather permits?
  • Safety: Research the neighborhood's reputation. Many cities publish maps with details of crime statistics for each neighborhood. Nobody wants to be nervous visiting your building, especially staff working after hours.

Now that we're talking about employees, let's look at smart ways to keep them around.

Keeping Rainmakers and Problem Solvers

Your office location and environment can help keep staff with you for years to come. While replacing staff is a hassle, it has another drawback: It can be expensive, too.

While losing a top salesperson is bad enough, replacing any employee can add up to 100% to 200% of their annual salary.

Therefore, when you're doing walk-throughs of potential offices, imagine you're coming in for an interview or your first day at work. How would you feel? Would you feel valued, welcome, and ready to perform?

Or are you trying to find a place to sit?

Other ways to create a welcoming atmosphere include:

  • Look for spaces with high-speed internet, modern HVAC systems, and energy-efficient features.
  • Spaces with ample natural light can boost mood and productivity.
  • Ensure there are places that can be converted into quiet areas for focused work or private conversations.
  • On-site gyms, bike storage, wellness discounts, or proximity to parks can appeal to health-conscious employees.

Open spaces that encourage teamwork and creativity in comfortable surroundings can be attractive to younger workers.

They also help incubate a positive culture, and we'll look at that next.

Promoting Shared Values and More

Your office space is where your company culture will come to life.

While covering walls with positive slogans can be tempting, actions speak louder than words.

This is why, when evaluating available office space for lease, look for features that align with your cultural values.

Decide whether an open-plan office or a more traditional layout better suits your company's work style.

Informal meeting spaces that resemble lounges can foster team bonding. Spaces that can convert from individual workspaces to meeting venues can also encourage positive interactions.

Making the Final Decision

Before you begin to negotiate a lease with your future landlord, you may be feeling anxious. Making this type of choice can stress even the most experienced business owner.

Instead of losing sleep, here are better ways to deal with nerves.

  • If possible, invite a business or financial partner to visit the space. They may spot a potential problem you've overlooked.
  • Try to imagine how your company would function within the space. Does it align with your vision for your business's future?

While data's important, don't ignore your gut feelings. Your intuition can be a valuable tool if you allow yourself to listen.

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