Critical questions you should ask yourself about your company's office space needs. Published on VentureApp - https://www.ventureapp.com/blog/2016/05/13/10-questions-to-ask-before-leasing-your-first-office/

1. IS YOUR COMPANY READY FOR THE COMMITMENT?
Renting office space is a commitment. Unlike renting an apartment, the shortest office leases are typically 2-3 years, and
many are five years or longer. Can your company make that commitment? If not, WeWork, CIC, Regus, and PivotDesk are
flexible alternatives that offer shorter term leases (monthly or yearly) and can serve as a stepping stone for your company
to get off the ground. Subleases are another option; typically offering below market rents with furnished and wired space.
These are still fixed term agreements but are often shorter than three years.
OKAY, YOU’RE READY, BUT HAVE YOU TALKED TO AN EXPERT?
A commercial real estate broker is the best resource (your mom’s friend who sells homes in her community probably isn’t
the best person to talk to). Get a couple referrals and do your research. Pick a firm and a broker you trust, like working
with and has at least 10 years of experience working in the market you want to locate your company. Working with them
exclusively ensures your company is taken seriously in the market and your broker can leverage their experience and
expertise to your benefit. Landlords pay all broker fees so this really is a no-brainer if you want to save time & money.
WHAT IS YOUR BUDGET?
Your startup is funded, you need to hire more employees and continue to improve your product. Next to payroll, an
office lease is one of your largest fixed expenses. Plan your budget for space accordingly. Consult your advisors and your
broker. Understand all the cost: upfront cost (outlined in #4) and additional lease costs beyond base rent like – utility costs,
increases in operating expenses and taxes in later lease years, telephone, internet and insurance. Lock in a number that is
sustainable and realistic (for your company and the type of space your company needs).
Questions to Ask
Before Leasing
Your First Office
If your company is doing well and growing – congrats! It also probably means you need to consider
first-time office space to house your growing team. Before doing so, here are the 10 questions you
need to ask yourself before getting started:
1
2
3
Questions to Ask
Before Leasing
Your First Office

2. DO YOU UNDERSTAND UPFRONT COSTS?
Here’s the typical breakdown –
SECURITY DEPOSIT
1-6+ months of rent (cash or
letter of credit) depending on the
landlord and the economics of the
lease transaction. Be prepared to
provide financial information on your
company. A P&L and balance sheet
and/or bank statement showing some
history are ideal. If you are sensitive
sharing this information, ask the
landlord to sign a non-disclosure
agreement (NDA).
TELEPHONE/DATA SETUP
Get Comcast or Verizon on notice
early as this can take more time to
setup than you think. New office
space is great but if you can’t email
your customer when the lease starts,
you can’t run your business. A
good rule of thumb is $100 per data
drop – and be specific if you rely
on a separate phone and data line.
Also, don’t forget to include your
conference room and break area.
Putting together a furniture plan will
account for every spot and will also
ensure wires aren’t stretched across
the floor.
COMMERCIAL LIABILITY INSURANCE
You will need a policy that covers your
business to operate in office space.
This has to be in place before you can
move in.
TENANT IMPROVEMENTS
You found space that needs a little
love and the landlord isn’t paying for
it as part of the deal? Be prepared to
hire a licensed contractor to make the
space your own. A little can go a long
way. Also, understand if your building
is union or open shop. This will dictate
who can do work in the building on
your behalf.
ATTORNEY FEES
Yes, you should have a qualified
attorney review your lease. It can
save you from worst case scenarios
down the road. If it is a small lease,
some attorneys work on a fixed dollar
amount.
FURNITURE
Used furniture vendors are plentiful or
if you want to buy your own, consider
Ikea for cheap and functional desks.
You will likely need a licensed moving
company to move you and setup the
space – make sure you know the cost
ahead of time.
4

3. WHAT KIND OF HEADCOUNT GROWTH DO YOU EXPECT?
Growth can be critical to success. Work with your broker to understand how your headcount will impact your space needs.
If you are 10 people growing to 20 in the next 18 months, build that into your upfront space plan. It will often be less
disruptive and costly in the long run. Take your proposed floor plan and do a maximum density seating plan and then work
backwards from there. Growing to 25 people or beyond in the first three years? Choose a building, landlord and space that
can grow with you:
Expansion rights on
more space
Rights to sublease or
PivotDesk
Clear understanding of how the space can
be augmented or expanded if headcount
outpaces the existing premises
Landlords who have multiple buildings in the area you
are looking to be - if you can’t grow your company
in your current building you might consider another
building owned by your landlord down the street.
WHAT IS YOUR LOCATION PREFERENCE?
You should pick a location that allows your company to be successful, not necessarily one that allows you and your early
employees to walk home for lunch. Convenient public transit, parking (if necessary) and food and service amenities that are
close are all important early factors to consider. Some neighborhoods boast considerably less expensive office space than
others. Work with your broker to understand the cost/benefit of each submarket and what makes the most sense for you
and your employees.
WHAT IS YOUR OFFICE CULTURE?
Chances are you have an idea about who you are as a company and some very simple things can help your office space
align with that identity. Location may be #1, and space layout/design and simple thing things like paint color might be a
close second. Some minor and inexpensive changes to a space can quickly transform the space into your own. Don’t over
invest! This space is temporary and as you grow the company the culture will transform. Google creates much of its space
experience with cool colors and furnishings, but make sure that your business spends money where is will have the greatest
impact. Offering your employees more accouterments may outweigh paying for “cooler,” more expensive space.H
HAVE YOU CONSIDERED WE VS. ME SPACE?
Building on culture, more and more companies are opting for an open office layout. It is efficient, flexible and collaborative.
But, make sure the open “WE” space is balanced by “ME” space for private meetings/calls and quiet personal production
time. The biggest complaint I hear from early stage startups is the need for more meeting space in their office. Build it into
your plan early on so the space withstands your company’s growth.
5
6
7
8

4. 745 Boylston Street | Boston, MA | (T) 617.375.7900 | (F) 617.536.9566 | BRAdvisors.com
© Copyright Boston Realty Advisors. All rights reserved. The information contained here has been obtained through sources deemed reliable but cannot be guaranteed as to its accuracy.
Any information of special interest should be obtained through independent verification.
ROBERT F. LECLAIR
Managing Director & Partner
617.850.9614
rleclair@bradvisors.com
This post was contributed to VentureApp by Robert F. LeClair, the managing director & partner at Boston Realty Advisors, a full-
service commercial real estate brokerage and consulting firm.
Have any other questions you need help answering? Ask your broker.
You might learn something that can help your business be more successful.
DO YOU KNOW YOUR LEASE INSIDE AND OUT?
I can’t stress this enough. Read the lease, have an attorney review and explain everything you are signing up for: the risks,
liabilities and costs that you will or could incur. Have a plan if the business doesn’t work out and understand your options as
it relates to the lease, i.e., subleasing rights, default provisions, and the extent of your liability as a company.
IS YOUR LEASE READILY AVAILABLE?
Emerging companies change quickly. Be proactive with your office needs. Lease rates, landlords and other companies
are always changing so make real estate planning happen quarterly, aligning it with your business plan and getting ahead
of any changes in your needs. Leases are for a fixed time period but there are often creative solutions at your disposal to
address changes in real estate needs.
9
10