You’ve gone from being a struggling entrepreneur to a full-fledged business owner. Your client list is growing by the day, maybe you’ve received your first round of funding, and it’s not just you and your dog in the basement anymore. You know you need an office to house your growing team, but deciding how much to spend and where isn’t as simple as it seems.
You need a space that will allow you to maintain operational flexibility through each stage of growth, reflect your brand, and support, attract and retain top talent – all while keeping spending in check. But how do you know if you’re getting the best lease terms and amenities? How much space should you allocate for each employee (while also planning for growth)? And how can you minimize your operating and capital expenditures?
Avoiding the hassle of these questions can seem like the best option, which is why co-working spaces have become so popular. These super-flexible spaces can be great options in the interim, but do you know when you should be considering other options for both financial and practical reasons?
Having worked with businesses in every phase of development, the experts at JLL have identified questions worth considering before making an office investment:
The Seed Stage (5-20 employees)
Priority in this phase should be maximizing flexibility, and finding a location that will help you recruit and retain top talent.
· Will the landlord cover tenant improvements?
· Are there options to expand the space?
· What is the expected length of term?
· Is furniture included? Is it easy for plug & play flexibility?
· What kind of IT connectivity support do I need? Who are the internet/fiber providers in the building?
· What kind of financial security will be required to secure the lease?
The Early Stage (20-40 employees)
Priority again in this phase should be maximizing flexibility (sensing a theme?) and continuing to focus on a location that will help you recruit and retain top talent.
· How can I minimize operating and capital expenditures?
· What lease terms are optimal?
· What public transportation options are available?
· Is there an option to sublet?
· How do I plan for growth?
The Growth Stage (40-200 employees)
Priority in this phase is utilizing the office space to establish your brand. Leverage your more secure financial situation, and continue to maximize flexibility, recruitment and retention.
· How do I build flexibility into my lease?
· What can I leverage for optimal lease negotiations?
· How can the space enhance the image and culture of my business?
· What is the expected security deposit?
The Mature Stage (200+ employees)
Priority is establishing a longer-term solution for your office needs. Do you see yourself in this space for the next 5 – 10 years?
· Is it smarter to own or lease my space?
· Is the tenant landscape competitive?
· How can my space help attract and retain top talent?
· How does this space support and build my infrastructure?
· What is the scalability in my building?
Before you over-spend or lock yourself into lease, protect your office investment by working with a professional. From your first desk to your first headquarters, the experts at JLL can provide insight and assistance to help you ask the right questions and get you into the best space for your needs and your budget.
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Amy Aldridge serves as vice president in Tenant Representation in JLL’s Denver Corporate Office. She brings nearly a decade of commercial real estate expertise to the role, including extensive experience closing complex and challenging transactions. She specializes in growing companies, predominately located downtown and the periphery submarkets.
