Jun 06, 2016

The Best Office Space Deal -- In Three Steps

By Don Catalano



Getting the best deal on your company's next lease on office space is a three step process. Going from macro to micro, you need to locate it correctly, negotiate the deal correctly and configure it correctly. If you maximize those three factors, your company will come out with the best possible combination of factors.


Before starting the process of sourcing your office space, you need to pull your team together. While most companies start the process with a broker and with an attorney either on hire or in mind, the professionals that come into play in the later stages of the game as the team that designs and implements your build out -- space planners and construction managers -- are important to have in place when you start, as well. That build out team can quickly tell you if potential spaces are not good choices or if they will be subject to hidden costs or other problems.


Once your team is built, it's time to begin the three step process of landing your new office space.


Step One: The Location

Finding the right location isn't as easy as asking your broker which area is "hot" and looking to see where your competitors site themselves. Instead, you'll want to pay careful attention to both occupancy costs and to what labor will cost you in a given market and in a given submarket within it. In addition to cost concerns, look at the lifestyle considerations -- like proximity to amenities and commute times -- that also help or hurt you in the process of attracting and retaining talent.


Once you've found an area that will work for your company, engage with as many potentially suitable choices as possible. While we'll discuss the negotiation process in more detail, for now, remember that the more landlords that want you, the easier it will be to negotiate an attractive deal for your office space.


Step Two: The Configuration

Just because an office space seems perfect doesn't mean that it is the best point. Even before you start negotiating the price, get your build out team involved. They can give you an idea of how efficient the space will be. While this typically mean squeezing as many people as you can into every square foot of the space, it should also mean gauging its ability to support desirable amenities and open spaces. your construction manager can help you to understand if there will be any challenges in implementing what your space planner conceptualizes.


Step Three: The Negotiation

Finally, once you have a few office space options that are truly suitable, it's time to start negotiating. The best way to get the landlord to really work with you is to let him or her know that you are also talking with the competition. That way, each party knows that they have to come up with the best possible deal to land your tenancy.


Realize, though, that different landlords might have different areas in which they are able to give. One might offer a lower rent, while another offers more concessions. Your broker can help you calculate which office space deal is best from a dollars and cents perspective and if you can be flexible about how you get there, you could get an even better deal.


Download our FREE eBook: Winning Your Lease Negotiation in 10 Easy Steps


Here are some other great Office articles to check out:

The Future of Office Space

Six Amenities to Look for in Office Space

Sense of Purpose and Your Next Office Space


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Don Catalano

Don Catalano