Expert leasing tips for first-time office tenants

Rely on experts

Independent expert advice should be your top priority heading into the leasing space for the first time. Professionals working in your best interest across all aspects of leasing will reduce risks and improve the outcome.

First up will be legal representation. The key is to seek legal experts with experience in commercial leasing more generally and in your specific industry where possible. Your legal advisor will prove invaluable in negotiations and simplify lease jargon so you know exactly what you’re signing up for.

There’s your financial team as well. Accountants and business advisors are on hand to ensure you don’t overextend the budget when securing an office space. It would be best to discuss the impact on your bottom line – now and as the lease progresses.

Also, consider using a tenant advocate to represent your interests. Tenant advocates work with you. They look at your company now, along with its projected growth profile. They can identify space that will suit your business evolution. Best of all, they can do the heavy lifting with negotiations.

Tenant advocates are also well connected, with access to information on comparable lease arrangements, helping you to avoid overpaying.

Understand your needs

Many first-time office tenants are in an ambitious phase of their company’s life cycle. This can lead to their renting the space they want for the future, not the space they need right now.

You might aspire to fill 500 square metres in a CBD tower, but that’s a massive outlay if you only need 300 square metres on the city fringe.

In addition, the very nature of the work week has been upended in recent years. Companies are embracing the hybrid work model, and improved connectivity options mean only some people need to be on-site to be productive.

So, think carefully about what the minimum, average and peak employee capacity will be.

Look at ways to minimise the floorplate, delivering impressive cost savings. A mix of flexible spaces and permanent desks may allow workers to choose how their work week looks.

Also, if there’s an on-site all-staff meeting, can it be conducted on the shop floor rather than in a boardroom that will then sit vacant? Some buildings even have shared meeting rooms so tenants can book the space only when required to conduct important get-togethers or even team-building social gatherings.

Consider how your employees carry out their tasks, too. Do they need a mix of collaborative and private work areas? If they’re communicating with others offsite, does this require privacy? This extends to another critical element – mentoring. This aspect of office life can’t reach its full potential if the participants aren’t in the same physical area.

Reflect on your growth plans as well. As you hire more staff and evolve as an operation, will there be options for expanding within the building? If you need help, your experts must consider your lease renewal options carefully.

It may be the case you’ll wish to relocate after the first term ends.

Customers and staff need to be able to access your office, so look at public transport options or whether free or cheap parking is available in the area where you want to lease. Offices with end-of-trip facilities also encourage staff to walk or ride to work – a great productivity booster.

The essence is to look for characteristics in a space that will deliver the most benefit for the least cost.

Take your time

Allow ample time to secure a suitable space. Some businesses take months and months to find their first office, which is a smart move. There will be plenty of options, so if you miss out on one, another will come along. This is an important decision, so don’t rush it.

Once you select an office and have completed negotiations, comprehensively scrutinise the lease document. Again, don’t hurry through this due diligence. Commercial leases can be full of complex terms and conditions, and a breach of your responsibilities could result in a severe financial penalty.

You must understand every clause and know what you’re accountable for and what the landlords must attend to. Again, lean on your advisors to explain this.