Guest Blog Post feature is a new idea we are trying to give all of our members an opportunity to share an article on theBrokerList blog. Since our project is open to the public via online search, writing a blog article about an area of expertise is a great way to brand you and your firm. Thanks to Lynn Drake for providing this post.
When you think about renting property, how much space do you REALLY need? Will the firm grow exponentially? What if it shrinks? How can I forecast in this turbulent world? Who tells the truth?
All too often clients come up with a round number that feels right in the moment. “I need 5,000 square-feet.” “I need 8,000 square-feet.” When I ask how they arrive at that number, they can’t say. But none of them want to have the kind of space left large enough for a bowling alley.
As brokers, it is our job to qualify our clients and provide the client with insight about industry standards and resources that can help a client make the most accurate decision. For instance, a good space planner or architect can provide a wealth of information or, in my case, I have devised a number of interactive questions our brokers can ask, along with a chart which helps determine optimal size for our clients’ next investment.
For instance, if you have 25 employees. Do you put them in cubicles or private offices? How many bathrooms do you need? How many conference rooms? How many parking spaces? How much storage? You have a number of considerations. The last thing you want is to sign a 7-year or 10-year lease with no escape clause. If you outgrow the business you are stuck. If you shrink the business you could be paying that lease on wide open, unproductive spaces. You want to check the fine print for sub-lease options.
I personally recommend a five-year lease with the right of first refusal on adjacent space. Say your company expects to grow exponentially; you would like to expand under the same terms as your existing contract. You may want first dibs on the property next door should it become available because the location is superb.
We would be happy to supply you with the chart we use to determine space needs. Please go to Compass Commercial and fill out the interactive form. Supply us your contact information and we are happy to review your needs. Our people have handled large and small office and industrial leases for a dozen years.
Each client presents a new challenge and a new dream. You could be the next Apple, UPS or Molly Maid. Dream big while thinking frugal on space.