Starting businesses are often characterized by their limited access to capital and their low chances of survival, depending on their sector of activity. However many manage to deal with these two business aspects each year, and even post solid growth numbers. When a startup experiences growth, it starts looking for a bigger office space to rent. This article offers tips that growing companies may apply to conduct their office space search.
Are your finances in order?
Regardless of how popular your company has become, property managers will want to see that you have the ability to make rental payments until the end of the lease contract. To convince them, you’re going to have to present your financial statements. These should show that your company has more assets than liabilities, and/or feature a third-party that can be held liable in the event of a default.
Are you working with a real estate broker?
It’s very important that you get expert assistance when searching for office space. As you might know, small businesses have very specific needs that must be taken into consideration when visiting potential offices. Only a qualified real estate broker possesses the specialized knowledge to conduct such a search. Another reason to hire a real estate broker is because they can find an arrangement with property managers quicker than you. These professionals are bound by ethical rules that require them to be loyal to prospective tenants, which means that they will do whatever they can to get you the best deal.
Make sure you obtain the right to sublease
Rental payments can be high depending on location. To avoid ending up with higher-than anticipated operational costs, see if you can negotiate with your corporate landlord the right to sublease some of the space that you’re renting. This will allow you to maintain a certain financial flexibility, and protect your company’s growth.
Applying these tips and looking at our pre-leasing checklist will help you find the office space that’s right for your business without negatively affecting its growth.