Choosing office accommodation

Finding the right office premises will help you improve productivity,attract and retain good employees, and give a positive impression ofthe business to your customers.
This briefing takes you through the various stages of looking for an office.It covers:

The Right Location
Look for a location that fits your business needs.
Should you be near your customers and potential customers?
Some businesses can operate successfully at long distance, using the latest technology.
Others know that proximity to their customers is vital.
Should you be near to other similar businesses?
In some sectors, such as estate agency, businesses benefit from being near to each other, as customers like to shop around.
Should you be close to your suppliers?
For example, if you subcontract work that needs close monitoring.
Should you be near the highway system, or a railway station, or an airport?
For example, if your sales team needs to travel extensively.
Consider the trade-offs between location and cost
Lower prices in an area with a lot of vacant property could mean the area is bad for business.

Size and Type of Premises
Work out the requirements for your business.Decide on your total space requirement
•    Work out what space each person needs.
•    Take into account any space that could be saved through hotdesking
•    Desks can be shared by a group of employees – such as a field sales force – if they are not all in the office at the same time
•    Decide what additional space will be needed for meetings and storage.

Decide on the type of layout you want
•    Open-plan space is more flexible, since you can divide or reorganise the space as your needs change
•    Regular rectangular floors with a minimum number of pillars provide the maximum amount of usable space
•    Individual rooms offer privacy and are quieter.

Decide what your technical needs will be.
•    Consider modern buildings with air conditioning, cabling ducts and good security systems built in.
•    Consider how much natural light comes into the building
•    Dark offices lead to more sickness and low productivity. Money saved by renting a basement office may be a false economy
•    Make sure the services are adequate
•    For example, power points and phone sockets wherever they are needed.

Look for premises which will allow you to expand or contract
•    Going into a serviced office block may allow you to shift from one office to another, larger or smaller, while keeping the same address. This saves money on relocation costs and cuts down on the disruption of moving
•    Consider whether the nature of your business may change, so that you need another kind of premises
•    Do all your operations need to be under one roof? For example, you could keep archive records in a less expensive location
•    Many businesses underestimate how quickly they will outgrow their premises.

Decide what image you need to project.
•    A large, clearly visible office may add to your prestige
•    Consider the advantages of perceived size. The ‘Saatchi building’ in the UK was occupied by many companies other than the advertising firm, but the impression was given that Saatchis occupied all of it
•    If you initially sublet part of your office, you have the potential to expand in due course.

Town Centre Premises
A town centre may seem an obvious choice of location but there are pros and cons. Town centres offer several advantages:
•    You may be able to maximise your visibility to your potential market
•    A good address may be important to your business
•    You will probably have good access to public transport
•    You will be close to facilities such as a post office, banks and print shops
•    Employees may be attracted by a choice of eating, shopping and leisure facilities
•    Businesses which usually prefer town centre premises include retailers, employment agencies and professional firms, such as solicitors.
There are also potential disadvantages:
•    Car parking may be difficult and expensive, for both employees and visitors
•    Access for deliveries may be restricted
•    Noise and pollution may be worse
•    There may be less modern office space.

Out-Of-Town Premises
Many new office developments have been built away from towns. The advantages can be substantial.
There is usually plentiful parking. Some employees place a high premium on being able to drive to work.
•    Business parks generally have modern, well-equipped office space
•    The environment will be cleaner, more attractive and usually safer
•    Businesses which often prefer out-of-town offices include sales operations, manufacturing businesses and call centres.
The disadvantages are less obvious:
•    Estate maintenance and management charges in a business park can be surprisingly high
•    Some business parks are located in run-down former industrial areas. Your employees and customers may find this off-putting
•    Employees without cars may find getting to work difficult
•    There may be few shops or places to eat nearby. With fewer places to socialise locally, employees may not spend much time together outside work.

Lease or Buy?
Buying premises is usually a long-term investment. A lease is a rental agreement, usually over several years.
All kinds of buildings can be bought or leased. The premises available on a licence are mainly offices, studios or workshops suitable for smaller businesses.
What services and facilities do you need?
•    Licensed premises often give you access to shared fax and copying machines on a pay-as-you-go basis
•    Secretarial and switchboard services may be available, if required
•    Meeting rooms or extra offices can often be hired by the hour, half-day or day
•    Premises that are bought or leased do not usually offer day-to-day support services, nor the opportunity to use communal facilities for special projects.
How much cash is available?
•    With minimal legal fees (if any) and only a small deposit to pay, taking premises on a lease is usually the cheapest way to set up an office in the short term
•    Terms vary, but typically you will have to find a month’s rent as a deposit and pay your rent monthly, or quarterly, in advance
•    Most leases include provisions for rent reviews at fixed periods. Reviews can be a problem. In a rising market, your rent may increase considerably.
•    Buying ties up your money for a long time, especially as deposits for commercial property bonds can be high. Few businesses buy office premises unless they have large amounts of spare cash and are looking for a long-term investment. Buying is obviously the most expensive option in the short term. But it usually works out less expensive than paying rent after the first 10 years – and you do own the premises once any bond is paid off.
How much liability will you have for repair and maintenance?
•    Leased space will be maintained and repaired by the landlord. If you lease, the landlord is usually responsible for external repairs and maintenance, and for any common areas. You may be responsible for internal repair and maintenance work. Removing your alterations may involve extensive reinstatement such as replacing damaged ceilings
•    If you buy the premises, you are responsible for all the repairs and maintenance.

Looking for Premises
Searching for new premises will add significantly to your workload. When searching for office premises, draw up a list of criteria that the premises should meet.Then give each element a score out of 10 when you visit each property.Your list might include:
•    Location
•    Size
•    Structural condition
•    Cost
•    Maintenance liabilities
•    Length of lease
•    Accessibility
•    Layout
•    Parking
•    Front elevation and reception appearance
•    Security
•    Surroundings
•    Lighting (electric and natural).