Choosing an office space can be very challenging because the decision you made of your future workplace for your business, will determine for your business‘s longevity. The wrong location, for example, could cost you employees or clients. What’s more, you have to base your choice not just on your company’s current needs but also future needs.
Business owner should consider the following questions carefully before signing any contract or agreement on their new office;
Is there room for my company to grow? companies must consider not only their immediate needs, but also their future needs such as growth and other factors that might change their space requirements over the course of the lease. If you can’t afford to take extra space for future growth at the beginning of your contract, you can try to negotiate a shorter lease term or add a clause to the lease agreement that gives you the first right of refusal on any adjacent space that becomes vacant.
Is it the right location for my key employees?
Consider where your key employees live and whether the space is convenient for them. A long, expensive commute may push them to seek employment elsewhere. “When considering a move, you might want to let your key staff involve in the decision process so you don’t risk losing them.
Is the location convenient for clients?
You also want your office to be easily accessible for your clients, as the Jakarta traffic has become more and more crowded and transportation costs continue to rise thus people may not be as willing to travel to your business place especially if the distance between their office and your office are significantly far. If you choose to move your office to a non-central business district without direct access to central business district for lower expenses, consider whether the lower expenses will make up for the possible loss of clients. Even in the era of video conferencing and Skype, it’s important that face-to-face meetings be manageable, as personal touch is still dominating the outcome of your service
Are there hidden costs I’m not considering?
Calculate the full cost of acquiring or leasing the new space; price, base rent, utilities cost, interior costs, moving expenses, and other costs that may occur but not stated in the lease agreement. You have to look at all costs associated with the move, including the reinstatement of the space you’re moving from.
How secure is the lease and did you get a fair rental rate according to the current market price?
The last thing you want is to get established in a space, then find out that you don’t have an option to extend or the landlord charged you way over the market price base rent. Although rental rates are usually negotiated at the time of renewal, you can also try to negotiate it in the beginning of your contract and cap any increase at no more than 5 percent.
