Startups, by nature, are always changing, and the last thing a budding business needs is to constantly search for and move into new spaces. As a company grows in both size and revenue, the physical office space will need to provide the flexibility to house the necessary changes (e.g. additional computer stations, conference rooms, etc.). Here are a few pointers to consider when looking for a location to help the business stay put longer.
Consider Rapid Growth
In order to avoid overcrowding an office, search for an office space that accounts for reasonable projected growth. Oftentimes, an extra ten or twenty percent of space can prevent a lot of issues from arising. While it may seem like an unnecessary expense, it has the potential to provide greater returns in the future by avoiding terminated lease fees as well as eliminating the hassle and expense of needing to sublease and seek a larger space before the lease expires. One way to compensate for the increased rent expense could be to use that extra square footage as leverage to receive better lease concessions, such as more rent abatement, tenant improvement allowance or termination rights.
Consider the Location
When it comes to real estate, the location of the property will play a critical role in the success of the business. You’ll want to consider the office’s location in regards to current and potential clients, vendors and employees. If the space is hidden, it’ll make it difficult for prospective clients to find the business. The location will also play a role in employee retention and talent acquisition. An office that is far out of the way will reduce company morale, and will be unattractive when trying to acquire top talent. It will go a long way in increasing employee happiness if the location is near quality amenities, such as trendy restaurants and entertainment.
Consider Your Needs
A critical aspect that should be heavily considered during the search is the layout of the office and its amenities. Does it fit the company brand and culture? A financial services startup may need a more structured environment with cubicles and sound proofing. Whereas a creative firm will want an office with open spaces for collaboration. Regardless of the industry, the layout should be conducive to the business. Also, the amenities of the office should play an important role in the selection process, as they can make a difference in employee morale, which will impact productiveness of the workforce. Will there be enough conference rooms, kitchens, restrooms or break rooms? Confirm if the space will be able to accommodate the specific needs of an industry. For example, a company with heavy IT needs will want a space that is able to power and protect all of the equipment.
Finding an office that is a perfect fit for a business is a challenge, especially for a rapidly growing startup. When beginning the search consider the projected growth, business plan and the needs of the company to find the best suitable space. The office search is a daunting task that should be tackled with a long lead up time, preferably one year in advance. The long lead time works in favor of the tenant, and is necessary to account for the lengthy processes of site selection, touring comps, term negotiation, attorney review and architectural design, permitting or construction work. Working with a qualified commercial broker can save a growing business tremendous time and money throughout the leasing process.
Tenant Advisory Group had an exciting August, hosting multiple events including an Executive’s Breakfast, Executive’s Luncheon and Networking Boat Ride. TAG is committed to making connections that matter and hosts these events for the purpose of helping those in our network grow their businesses by coming together in relaxed, intimate environments designed to help build new strategic relationships.
Thanks to all who attended!
TAG Executives Breakfast Guest List
Eddie Lou, CEO, Co-Founder, Shiftgig; Rhonda V. Jensen, President, Jensen Litigation Solutions; Keith Glantz, President and Chief Creative Officer, Glantz Design; James Taylor, Managing Partner, Taylor Group; Stephen G. Daday, Klein, Daday, Aretos & O’Donoghue, LLC; John Fakhoury, CEO, Framework Communications; David Crowell, Managing Director, CEO, rmc International; Nick Espinosa, Chief Security Fanatic, Security Fanatics & BSSi2 LLC; Craig Castelli, CEO, Saber Hill Advisors; Mark Meyer, President, ICI Staffing; Michael Erin, CEO, Progressive Management; Fletcher Boyle, VP of Business Development and Strategy, Chicagoland Smile Group; Amber Autumn, Business Development, Summit Design + Build LLC; Daniel Porcaro, Managing Partner, Porcaro Stolarek Mete Partners, LLC; Adam J. Glazer, Schoenberg Finkel Newman & Rosenber, LLC; Tyler E. Mose, CEO, Indirap Productions; Jim Anderson, President, Switchfast; Andrea Fox, Managing Director,
TAG Executives Luncheon Guest List
Stephanie Storkel, COO, Pedersen & Houpt; David Diamond, Partner, Kutchins Robbins & Diamond; Haskel Weiss, President, TWG Benefits; Jennifer Masi, Partner, Torque Digital; Bridget Brennan, Founder and CEO, Female Factor; Dan Walsh, CEO, Aurora Management Partners; Steve Dinelli, CEO, Blackbird Garage; Rich Bartell, CFO, 8th Light; Tom Patterson, Managing Partner, Patterson Law; Adam Glazer, Managing Partner, Schoenberg, Finkel, Newman & Rosenberg LLC; Brian Gurber, Partner, Pokorny & Marks LLC; Lisa Mirabelli, Business Performance Advisor, Insperity; Morrie Elstein, Cendrowski Corporate Advisors; Joanna Sobran, CEO, MXOTech; Jonathan Rothstein, Senior VP, MB Bank; Colleen Warner, CEO, LulaFit; Laurel Bellows, Managing Partner, Bellows and Bellows; Margaret Pagel, Partner, 8th Light; Irwin Cohen, CEO, Affiliated Equities.
TAG Networking Boat Ride Guest List
Josh Golden, CEO, Table XI; Tim Schumm, Founder, Carver Peterson; Joanna Sobran, CEO, MXOTech; Bruce Johnstone COO, Apex Design/Build; Dave LeTourneau, COO, Gregg Communications; Jordan Matyas, Managing Partner, 1818 Advocacy Group; Mark Meyer, CEO, ICI Staffing, E&M Development; Jim Anderson, President, Switchfast; Tim Smith, Managing Principal and COO, Catalyst Consulting; Tom Goldblatt, Founder, Ravinia Capital; Larry Levy President and Founder, CFO Options Inc.; Amber Autumn, Business Development, Summit Design + Build, LLC; Scott Nicholson CEO, KindredOnore; Tyler Mose, CEO, Indirap Productions; Pierce Hutchings, Partner, Club1 Hotels; Melanie DeCaprio, CEO, New Sky Strategies; Steven Thomas, CEO, BizIntro; Morrie Elstein, Cendrowski Corporate Advisors; Dr. Gabriel Martinez-Diaz, Dermatologist, CompHealth; Jonathan Rothstein, Senior Vice President of Commercial Banking, MB Financial Bank; Dave Stolarek, Partner, PSM Partners; Greg Fenton, CEO, VirDocs; Samuel P. Gussis, Managing Partner, Gussis Lichtenfeld & Alexander LLC; Grant Gochnauer, Co-Founder and CTO, Vodori Inc; Sanjay Sharma, Co-Founder, Bridge; George DePalma, CEO, DePalma Group Architects and Design; Andrew D. Bell, Spain, Spain and Varnet, P.C.; Kaitlin H. Reimann, Co-Founder, uBack; Sam Barhoumeh, Managing Director, ReadyNetworks; Joel Wicks, CFO, Belly Card; Brian Kasal, CEO, Four Star Wealth Advisors; Jay Breeden, COO, ACT Dental Practice Coaching; Becka Bates, CEO, Bates Moran Design; Michael Ward, Partner, Riley Safer Holmes & Cancila; Doug Harris, CEO, Kaleidoscope Group; Pete Cunningham, CEO, CCO Healthcare Partners; Elizabeth Peterson, CEO and Founder, Eastwood Group; Stuart Baum, CEO, Larger Pond; Alap Shah, Co-Founder, SoMe Connect; Paul Raya, CEO, Cook Alex Law; Angelika Coghlan, Founder, Success Catalyst; Stefan Birrer, CEO and Founder, Phoenix 2P; Brendan Flanigan, CEO and Founder, Smark Labs; Jim Mattei, Sandler Sales