Conducting a search for new office space can sometimes be daunting for prospective tenants. With a large supply of options and an everchanging market it can be difficult to know where to start.
Forward planning will generally save you a lot of wasted time. Below we have key identified the key steps:
Develop Your Brief
The inspection should begin by firstly developing a comprehensive brief, considering all of the requirements of your business and your team. Spend time to ensure it is as thorough as possible considering the different aspects listed below:
i. Size of Space
Understand as accurately as possible what size of space you require as this will have a major impact on the budget. Effectively designed modern tenancies will generally accommodate 1 person per 10 – 11sqm (legal businesses may differ). For example, if you were looking to accommodate 20 people you should aim for around 200 – 220sqm. This would include all shared spaces (meeting rooms, kitchen/breakout etc). Our Office Space Calculator can assist you with this – https://caden.com.au/office-space-calculator/
ii. Understand your future/forecast growth
Visibility around future is tricky for many businesses… growth with respect to your ideal lease term can be a fine line. No one likes paying for space that isn’t being utilised however, this is often a necessary evil in order to be able to cater for the company’s growth as they progress into their lease. Ensure you have a firm understanding of both the current business requirements whilst taking into consideration the long-term growth pipeline of the business.
iii. Timing
Having a sound understanding of your lease obligations throughout and at the end of the term will mean that you are better positioned to potentially leverage a new deal.
Don’t leave things too late and aim to be proactive rather than reactive when your current lease is expiring. We recommend looking at addressing this 6 – 12 months out from your expiry.
The Inspection
It is important to understand that during this process your brief is prone to adapt and change as you view a variety of different spaces. With this in mind, the best thing to do is get the ball rolling and lock in some inspections.
i. View plenty of properties
Nothing will beat walking through a number of spaces to get a touch and feel of what is available. This will provide you with a better understanding of what your price point and lease-term preference can achieve, and whether it needs adjusting. Comparing the advantages that each one can offer your business will ensure an informed decision is made.
ii. Explore different locations
Whilst you may be anchored to a specific location/sector of the city, it is important to initially keep an open mind. Each building in the Brisbane CBD will have several pros and cons directly related to location typically ranging anywhere from easy access to public transport, dining options, gyms and shopping. Understand which of these are most important to your business.
iii. Entertain a couple of rounds of inspections
Depending on how popular your preferred office space is, there is an unfortunate chance that if timing doesn’t align you may miss out. Being across all options relevant to your brief will ensure that in the unfortunate situation that this happens you are able to make an informed decision on the next best option.
An experienced leasing agent will show a prospective tenant as many spaces available for them to be sure that they are making the right decision with some “fall-back” options in-tow.
Deciding lease term
The length of time in which you are comfortable committing to a proposed lease can have a pivotal impact on the amount and type of tenancies that will be available during your inspection process. A shorter lease term may mean your options are restricted to tenancies that have existing fit outs. Whilst longer lease terms will allow for the construction of a new purpose-built fit out or a spec-built fitout.
This article from our website goes into more depth covering the specific fit out types and the typical terms in which they are made available to tenants – https://caden.com.au/insights/existing-fit-out-spec-fit-out-turn-key-fit-out-same-or-different/
Creating leverage and requesting offers
Once you’ve ticked off all the above and are satisfied with a preferred option as well as a handful of fallback options, it is time to progress to request an offer. This article from our website touches on what to expect from a standard letter of offer and touches on some key commercial terms but is important to consult your experienced leasing professional with any last-minute questions you have – https://caden.com.au/insights/glossary-of-terms-heads-of-agreement/
With high levels of vacancy in the Brisbane CBD currently and with proactive landlords upgrading buildings providing a luxury of amenity to their current tenants, now is a better time than ever to secure office space in Brisbane.
Throughout this process seeking the help of a reliable leasing agent will allow you to refine your search and put the correct steps in place to secure an optimal office space.
For more information on the different options available and what will work best for you and your business, please contact Caden Office Leasing on info@caden.com.au or call us on 07 3014 5406 or speak to one of our leasing agents.
