Leasing Office Space: The Top 67 Factors to Consider
Posted on March 18, 2023
There can be many factors at play when deciding whether to lease office space. At times, it can seem a little overwhelming. Sometimes, it’s also difficult when we don’t know what we don’t know. In this post, we’ll walk you through some of the most common factors that are considered when leasing office space.
Hopefully, after you’ve considered all these factors, you’ll feel much more confident deciding if leasing office space is right for you.
Office Space Location
Here are some tips on how to choose a location that’s convenient for employees and accessible for clients or customers:
- Consider your employees’ commute – Take into account the location of your current employees and where they are commuting from. Choose an office space that’s easily accessible by public transportation or that has ample parking if most employees will be driving.
- Look for a central location – Consider a location that’s centrally located and easily accessible from different parts of the city or town. This can make it easier for employees to get to work and for clients or customers to visit.
- Check local amenities – Look for an office space that’s located near restaurants, coffee shops, and other amenities that your employees might need. A location with nearby amenities can make it more convenient and attractive for employees to work there.
- Research the local business community – Consider the types of businesses that are located in the surrounding area. If there are complementary businesses or potential clients nearby, it can make it easier to network and build relationships with other businesses.
- Consider your target audience – If you have a specific target audience or customer base, consider a location that’s convenient for them to access. For example, if you’re a retail business, choose a location that’s located in a shopping area or near a major transportation hub.
- Evaluate the competition – Look at the competition in the area and consider how it might impact your business. If there are similar businesses nearby, it could be a good sign that the area has a strong demand for your services, but it could also mean you’ll face more competition.
- Check local zoning laws – Be aware of any zoning laws or restrictions in the area that could impact your business. For example, some areas may have restrictions on the types of businesses that can operate in a particular location.
By taking these factors into consideration, you can choose a location that’s convenient for your employees and accessible for your clients or customers, which can help your business thrive.
Size and Layout
Choosing the right size and layout for your office space is important for creating a productive and efficient work environment. Here are some factors to consider when making this decision:
- Number of employees – Consider the number of employees who will be working in the office space. You’ll need enough space to accommodate workstations, meeting rooms, and communal areas like kitchens or break rooms. You’ll also want to make sure the space is large enough to allow for future growth or changes to your team.
- Nature of your business – Consider the type of work your business does and how much space you’ll need to accommodate your team’s work style. For example, a creative agency may need more open space for collaboration, while a law firm may require more private offices for client meetings.
- Type of office layout – Consider the layout of the office space you’re considering. Open floor plans can encourage collaboration, but may not be ideal for all types of work. Private offices can offer more privacy, but may not promote collaboration as effectively.
- Communal areas – Consider how much space you’ll need for communal areas such as kitchens, break rooms, and conference rooms. Having communal areas can be beneficial for team building and collaboration.
- Storage space – Consider the amount of storage space you’ll need for equipment, supplies, and files. You’ll want to ensure you have enough storage space to keep your office organized and functional.
- Future growth – Consider the potential for future growth or changes to your team. If you expect to grow your team, you’ll want to choose an office space with the square footage to accommodate additional employees.
- Budget – Consider your budget and how much you can afford to spend on office space. You’ll want to ensure that you’re getting the right amount of space for your needs without overspending.
By considering these factors, you can choose an office space that’s the right size and layout for your team’s needs and the nature of your business.
Amenities and Services
Here are some considerations for choosing office space with amenities such as high-speed internet, conference rooms, and a reception area:
- High-speed internet – Consider the internet speeds available at the office space. If your business relies heavily on internet access, ensure the space has reliable and fast internet that can support your business needs.
- Conference rooms – Consider the number and size of conference rooms available. You’ll want to ensure that there are enough conference rooms to accommodate meetings with clients or team members. Additionally, ensure that the conference rooms have the necessary technology, such as projectors or screens, to support presentations and meetings.
- Reception area – Consider if the office space has a reception area and if there will be staff to manage it. A reception area can provide a professional image for your business and ensure clients are greeted and directed appropriately.
- Other amenities – Consider other amenities that may be important to your business, such as a kitchen or break room, private phone booths, printing and scanning services, or access to fitness facilities. These amenities can help support your team’s productivity and wellbeing.
- Additional costs – Consider any additional costs associated with using the amenities, such as booking fees for conference rooms or additional fees for internet access. Ensure that these costs fit within your budget and won’t be a surprise down the line.
By considering these factors, you can choose an office space that has the amenities your business needs to operate efficiently and professionally.
Here are some key aspects of lease terms to pay attention to when considering leasing office space:
- Rent – Pay attention to the monthly rent and any additional fees or costs that may be associated with the lease. Make sure the rent is within your budget and that you understand how rent increases will be handled.
- Security deposit – Consider the amount of the security deposit required and when it must be paid. Make sure you understand the terms for receiving your security deposit back at the end of the lease.Lease length – Pay attention to the length of the lease and any options for renewal or termination. Consider how long you expect to be in the space and ensure the lease term aligns with your business needs.
- Maintenance and repairs – Consider who is responsible for maintenance and repairs within the office space, including routine maintenance like cleaning and repairs to fixtures, appliances, and infrastructure.
- Restrictions – Pay attention to any restrictions on the use of the space, such as limitations on the types of businesses allowed, the use of hazardous materials, or restrictions on renovations or changes to the space.
- Insurance requirements – Consider any insurance requirements imposed by the lease, including the types and amounts of insurance you must carry.
- Subleasing – Pay attention to the lease terms regarding subleasing the space to another party. If you anticipate the need to sublease the space, make sure the lease allows for it and that the terms are reasonable.
By paying attention to these key aspects of lease terms, you can ensure that the lease agreement aligns with your business needs and that you understand your rights and responsibilities as a tenant.
Here are some factors to consider when deciding how to choose an office space that offers flexibility in case your business needs change in the future:
- Lease terms – Look for lease terms that offer flexibility, such as month-to-month leases or short-term leases, instead of long-term commitments. This will allow you to adjust your space as your business needs change.
- Size and layout – Choose an office space with a flexible layout that can be easily reconfigured as your business needs change. Look for spaces with enough square feet to accommodate growth or downsizing, depending on your business needs.
- Access to additional space – Consider office spaces that have additional space available that you can expand into if needed. This could include neighboring offices or larger suites with more square feet within the same building.
- Shared office space – Consider shared office space arrangements, such as co-working spaces, that offer flexibility in terms of the amount of space you need, as well as the amenities and services you require.
- Expansion options – Look for office spaces that offer expansion options, such as the ability to lease additional space in the same building or access to nearby properties owned by the same landlord.
- Subleasing – Consider office spaces that allow subleasing or assigning the lease to another party. This can provide flexibility if you need to vacate the space before the end of the lease term.
- Termination clauses – Look for lease terms that include termination clauses that allow you to exit the lease early with minimal penalties, should your business needs change unexpectedly.
By considering these factors, you can choose an office space that offers the flexibility your business needs to adapt and grow, even as your requirements change over time.
Here are some factors to consider when it comes to accessibility, such as parking and public transportation options, as you are thinking about leasing office space:
- Parking – Consider the availability and cost of parking spaces for employees and visitors. Look for office spaces that offer on-site parking or nearby parking garages or lots. If parking is limited or expensive, consider alternative transportation options.
- Public transportation – Consider the accessibility of public transportation options, such as bus or subway lines, train stations, or bike share programs. Look for office spaces that are located near public transportation hubs or have convenient access to major transit routes.
- Bike storage – If your employees commute by bike, look for office spaces that offer secure bike storage, such as bike racks or bike rooms.
- Accessibility for people with disabilities – Consider the accessibility of the office space for people with disabilities, including accessible parking, building entrances, elevators, and restrooms.
- Commute times – Consider the commute times for employees and visitors, as well as the potential impact on productivity and morale. Look for office spaces that are located in convenient and accessible areas.
- Traffic patterns – Consider traffic patterns and congestion in the surrounding area, particularly during peak commuting times. Look for office spaces that offer convenient access to major roadways or highways.
- Walkability – Consider the walkability of the surrounding area, including access to amenities such as restaurants, shops, and services. Look for office spaces that are located in walkable neighborhoods or have easy access to pedestrian-friendly areas.
By considering these factors, you can choose an office space that is accessible and convenient for employees and visitors, which can help improve productivity and morale and enhance your business operations.
Here are some considerations for choosing an office space that offers adequate security features to protect your business and employees:
- Building security – Look for office spaces that offer 24/7 building security, including security guards, surveillance cameras, and secure entry systems. This can help protect your business from theft, vandalism, and unauthorized access.
- Fire safety – Consider the fire safety measures in the office space, such as fire alarms, sprinkler systems, and emergency exits. These features can help protect your business and employees in the event of a fire.
- Access control – Look for office spaces that offer access control features, such as key card or biometric systems, to limit access to the building and specific areas within the building.
- Cybersecurity – Consider the cybersecurity measures in place, such as secure networks and password policies, to protect your business from cyber threats and data breaches.
- Emergency preparedness – Look for office spaces that have emergency preparedness plans in place, including evacuation plans, communication protocols, and emergency contact information.
- Insurance requirements – Consider the insurance requirements for the office space and ensure that your business has adequate insurance coverage to protect against potential losses or damages.
- Neighborhood safety – Research the safety of the surrounding neighborhood, including crime rates and the presence of security cameras or patrols.
By considering these factors, you can choose an office space that offers adequate security features to protect your business and employees, which can help ensure business continuity and peace of mind.
Here are some tips for creating a budget that works for your business and factors to consider when negotiating lease terms with the landlord when leasing office space:
- Determine your budget – Calculate the total amount you can afford to spend on office space, taking into account your monthly rent payment, security deposit, utilities, and other related monthly costs such as insurance, maintenance, and repairs.
- Look for value – Consider the value that different office spaces can offer in terms of amenities, location, and size. Choose a space that provides the most value for your budget.
- Negotiate lease terms – Negotiate with the landlord for favorable lease terms, including a fair rent rate, lease length, renewal options, and any necessary improvements or modifications to the space.
- Consider hidden costs – Consider the hidden costs associated with leasing office space, such as taxes, maintenance, repairs, and utilities. Factor these costs into your budget and negotiate with the landlord for a more favorable deal if necessary.
- Plan for future growth – Consider your business’s future growth plans and choose an office space that can accommodate your business’s needs as it grows. Negotiate lease terms that allow for flexibility in case you need to expand or move to a new location.
- Seek professional advice – Consider seeking the advice of a real estate agent, attorney, or accountant to help you negotiate lease terms and create a budget that works for your business.
By considering these factors and following these tips, you can create a budget that works for your business and negotiate favorable lease terms that meet your business’s needs and goals.
Here are some tips on how to research and evaluate the reputation of the landlord and the office building before signing a lease agreement:
- Research online reviews – Look for online reviews of the landlord and the office building. Check websites like Google, Yelp, and Facebook for reviews from current or past tenants.
- Check with local organizations – Check with local organizations such as the Better Business Bureau or the
- Chamber of Commerce for any complaints or issues related to the landlord or building.
- Speak with current tenants – Consider speaking with current tenants in the building or in other buildings owned by the same landlord to get their feedback and experiences.
- Review lease agreements – Review the lease agreement carefully and look for any clauses or terms that may indicate potential issues or problems with the landlord or building.
- Visit the property – Take a tour of the office building and surrounding area to evaluate the building’s condition, maintenance, and safety.
- Check for any legal issues – Look for any legal issues or disputes related to the landlord or building by checking public records or speaking with a real estate attorney.
- Consider the landlord’s reputation – Consider the landlord’s reputation in the community and in the industry. A reputable landlord is more likely to provide a positive leasing experience.
By researching and evaluating the reputation of the landlord and office building, you can make an informed decision and choose a space that meets your business’s needs and provides a positive leasing experience.
Here are some factors to consider when choosing an office space that has the potential to accommodate your business’s growth and expansion in the future:
- Space flexibility – Look for a space that can be easily modified or customized to meet your business’s changing needs, such as the ability to add or remove walls, partitions, or workstations.
- Room for growth – Choose a space that has room for additional employees, workstations, or equipment as your business expands.
- Lease flexibility – Negotiate lease terms that allow for flexibility in case you need to expand or move to a new location.
- Building amenities – Look for a building that offers amenities and services that can support your business’s growth, such as meeting rooms, common areas, and high-speed internet.
- Accessibility – Choose a location that is easily accessible for your employees, clients, and customers, and has adequate parking and public transportation options.
- Location – Consider the location of the building and its potential impact on your business’s growth and expansion, such as proximity to potential clients, vendors, or partners.
- Future plans – Consider your business’s future plans and growth projections and choose a space that can accommodate those plans.
By considering these factors, you can choose an office space that has the potential to accommodate your business’s growth and expansion in the future.
In conclusion, choosing the right office space for your business requires careful research and evaluation. It is important to consider factors such as reputation, growth potential, lease terms and flexibility, building amenities, accessibility, location, and future plans. By researching these factors and negotiating favorable lease terms that meet your business’s needs and goals, you can create a budget that works for your business and choose an office space that provides a positive leasing experience.
If you are looking at leasing office space, the Commonwealth Commerce Center in Jackson, MI currently has available office space for rent right now with a variety of square footage options. Call us at (517) 784-0059 or contact us to get started today!