Leasing executive office space in downtown St. Louis or anywhere else is one of the most important business decisions you’ll ever make. Most of your work time will be spent in his office. His best creative thoughts will be hatched, his most important client meetings will take place, his most important deals will be made, all in his office. Therefore, finding the right office space to rent is a critical decision.
Following a methodical process when looking for office space will help you find the right solution for you. Here are some things to consider when renting office space:
Get an understanding of what your requirements are. Do this before doing anything else. Consider the needs of your business (square footage, space to expand, parking, location, length of lease, ground floor or an upper floor). A good rule of thumb for space requirements is to look for around 200 feet of office space per employee. When looking for a location, consider locating close to where your customers are. If you’re going to be entertaining clients, find office space near the restaurants and pubs you’ll be taking your client to.
Contact the leasing agent for the spaces you are interested in and ask for rates and terms. Also ask any other relevant questions you have. Find out how much the space costs per month, what deposit is required at lease execution, the lease term, etc. If you are using a real estate broker, they can help you with this step.
Visit the spaces that interest you to see if they fit your needs. The amount of space is important, but so is the “look”. How do you feel in space? If you need access to a break room or kitchen, does the office suite provide such access? Is there a reception area? Also look around to make sure the space has adequate storage for files and office supplies.
Identify any need for space improvement and talk to the owner about it. At a minimum, the space must be in good working order, unless you agree with the landlord to make the improvements yourself. Many landlords offer a building allowance, also called a TI (Tenant Improvements). Depending on your needs, you can negotiate this with your landlord.
To save money, consider sharing office space with a partner. If you can find someone or an organization that you and your staff can co-exist with, this can be a great way to get a professional space without paying a premium. Keep in mind the downside of such an arrangement: Your office mate may want to leave before you’re ready for them to leave. This could leave you paying for all the space yourself.
Consider the all-inclusive executive office suites. Often called business service suites, legal suites, or office suites, these are a great solution for the lawyer, architect, CPA, or independent consultant in need of professional space. For one all-inclusive price, you can rent an Internet-ready space that includes furniture, live telephone answering with reception services, a conference room, on-site security, telephone and long distance with a dedicated phone number, secretarial services (word processing, copying, postage) and concierge services. For the independent or small business owner, an all-inclusive full-service office suite can provide everything they need for one price. An added benefit: renting such an executive office suite can give your company a more professional image.
Try to talk to some of the current tenants in the building. If the owner resists this request, it could be a red flag that something is wrong. Most landlords will give you some tenant references.
Review your lease very carefully before you sign it. Understand your rights regarding the use of common areas, the type of security provided, what is included (taxes, insurance, repairs, utilities?), your security deposit, who will make and pay for improvements, your expansion rights in the future, future rent increases linked to inflation or the CPI, provisions for early exit from the lease, provisions for contraction (reducing your square footage), right of first refusal on adjoining space, and provisions to extend the lease term of your lease. This is where you might consider working with a real estate attorney.
If applicable, review and understand any rules or restrictions on signage.Depending on the size of your business, you may be in line to have exterior signage. At the very least, you’ll want proper brand signage at the entrance to your office suite.
If you decide you want the space, your potential landlord will want to know your company’s background and tax history. While the list below is not exhaustive, having this information ready for your potential landlord will speed up the application process. If you are missing some of the information below, or if you have damaged credit, it may still be worth exploring your options with landlords. The market is tough right now and the owners may be willing to work with you. When you have decided to apply for a particular office space, have the following ready for the leasing agent:
- A Completed Tenant Application – Your landlord will no doubt provide you with this form.
- Contact information for your previous landlord and/or previous creditors. Your new landlord will probably want to check references.
- Your Dun & Bradstreet number
- Several previous years of tax returns
- Audited financial statements, if you have them
Finally, before you sign an office space leasemake sure the person signing on your behalf is authorized to bind your organization to the terms of the lease.
Carrying out your office space search using the tips provided above should give you the best chance of landing the executive office space your business needs.
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