Even for those with extensive experience in executing leases, building office space, and moving people into new spaces, it can be daunting to begin searching for office space. It is important to have a basic understanding of the process and how long each phase can take. On the other hand, you don't want to start too late and end up in a space that is not right for you or that is not good for your company.

Space search is a complex process. It depends on how big the space you need, how much construction work is involved, and many other factors. Each space search is unique. Your leasing experience will be affected by the fact that different jurisdictions have different regulations. Different buildings have different systems and sizes. Landlords have different expectations. The steps below can be used to meet all requirements, from 500 feet up to 50,000 feet.

Don't Wait: Give Six to 24 months to find space and to Execute a Lease

The process can take anywhere from six to 24 months, depending on how many employees you need. If a firm has ten employees, it might be able to find a space that is ready for occupancy. The lease can be executed in three to six months. A large tenant might need to wait 24 months for a block of space measuring 25,000 square feet. Even larger requirements, such as 50,000 square feet, could require additional time.

Getting Started

During the initial stages of your search, there are four essential activities you should perform. These tasks require time, organization, and focus rather than a large amount of cash. In addition, these tasks can be done simultaneously and take anywhere from one to six months.

Make It Clear Why Your Company Needs Office Space: 

The stage of a firm is often a good indicator. An executive suite or coworking arrangement might be a good option for a startup looking to move from the founder's home. A growing business might need a bigger office or a second office in another location.

Consider engaging a commercial real estate broker. It is not necessary to work with a commercial broker who specializes in tenant representation. A tenant representative has the legal obligation to protect the tenant's interests. You could be at a huge disadvantage if you represent yourself. In addition, the listing agent representing the landlord has vast experience in negotiating real estate leases.

Determine Space Requirements And Goals: 

How many people do you need? Are you positive that your company will grow in the next few years? What kind of office layout are you expecting? What number of conference rooms does your company need? Do you need a custom-built space, an existing office suite, or a few desks at a coworking space? These are just some of the questions you need to address when assessing your needs.

Create a real estate budget. Be clear about your monthly rent costs. Leases can be structured in many ways. This means that you might need to cover monthly expenses such as utilities, real estate taxes, insurance, and property insurance. Budget for any additional costs such as moving furniture, setting up internet cabling, or building office space.

Core Activities

Once you know what type of office suites you need and how much rent you are willing to pay, it is time to start looking for locations and buildings that will meet your needs without breaking the bank. You can search for buildings by determining the available space and the asking rent (or rental amount) being sought by the landlord/owner. Although there may be overlap, the majority of the segments must be performed in order.

Determine The Best Locations For Clients, Employees, And Budget: 

It is important to understand the needs of key personnel involved in your business. It is important to determine if you have a client base that you should be near or if top management and employees prefer to commute to work. You should also consider the tax structure and labor cost in particular areas when deciding where to locate. Are you looking for a location near major highways or public transit? Do the floor-plates allow you to build the space you require for your business? These are just a few of the things you need to consider when assessing buildings, submarkets, and neighborhoods.

Ask Landlords To Send You Proposals For Buildings That Match Your Criteria: 

After finding two to three suitable spaces, write to request proposals from landlords describing the terms of the lease. These terms should include rent, escalations, and expenses, as well as concessions like free rent, length of lease, security deposit information, and other details. Although the attributes may not be included in the final lease, they will serve to anchor the negotiations between you and your landlord. In addition, you should have included figures and conditions that reflect previous conversations with the landlord. This could indicate that the landlord and you are not on the same page.

Test Fit And Negotiations (One To Three Months):

To test your space, hire an architect/space planner. Create "test fits" that overlay your offices, workstations, and conference rooms. To determine which office suite best suits your needs, you can draw the floor-plates of the ones you prefer. Next, negotiate terms with multiple landlords as you look at the various options. While negotiating multiple offers simultaneously will take patience and attention, you will find the best rates and terms by investing your time in this phase. After you have settled on a space, create a letter of intent that all parties sign.

Get An Attorney To Execute The Lease (One To One-To-Six Months):

Once you have settled on space and secured landlord and tenant signatures in a letter of intent, the groundwork for the office lease will be laid. This contract will govern your rights as a tenant while you are in the building. Therefore, it should reflect all terms that you and the landlord have agreed to during your search. Although it is not necessary to hire an attorney, an experienced lawyer should be retained to review the contract and make sure that all terms and clauses are legal and in your best interests.

The Final Stretch

You can move in immediately depending on the state of the space, or you might need to start a major construction project.

Layout Your Space (3-12 Months): 

This activity is the most variable in leasing because it is the one that can vary the most depending on the extent of the build-out. This can be as simple as re-flooring and painting a room or if you're occupying space that is ready for move-in. Partially built-outs that involve demolition, reconstruction, or the construction of unfinished space in "shell condition" could take up to a year, depending on the complexity and size of the project. Shell condition is when there are no walls, ceilings, or columns inside and the main plumbing and electrical connections are in place. You will need to collaborate with engineers, general contractors, architects, and other construction professionals for projects that require extensive construction. The landlord usually provides a tenant improvement allowance to cover a portion of the construction costs.

Move-In (5-15 Days):

An occupancy permit is required to install furniture and other technology. Before staff arrives at the building, a moving company can deliver personal items such as files, copiers, and other documents.