Essential Questions

Small and mid-size companies are often inexperienced when it comes to leasing corporate office space. Leasing specialists can help direct company executives charged with finding space by offering a few essential questions to consider before embarking on a space hunt.

How much space is needed? The industry benchmark is 200 square feet per employee. Law firms and other professional services often plan for 225 sf to 250 sf; call centers can average between 160 sf and 180 sf.

What is the ideal space layout? This consideration covers how space is used. How many workstations, private offices, conference rooms, and storage areas are needed? Is the company's culture one of open space, or enclosed offices? Does the company need a reception area, kitchen facilities, or other specialized space?

What lease length will the company commit to? For example, currently in the Calgary area market, the majority of office leases are five years, and most of the remaining are either three- or 10-year terms. Landlords will usually provide more tenant improvements in exchange for a longer lease term, and tenants can stabilize operating costs by locking in a longer-term rental rate.

What image is the company seeking? Location and amenities say a lot about a company to clients, both positive and negative. For example, some law firms embrace traditional well-appointed offices. Others seek plain vanilla shells so clients won't assume those high hourly fees are paying for wood-paneled elevators.

When is the company's moving date? Leasing specialists need sufficient lead time to find space and maximize a company's negotiating position. As a guideline, locating and negotiating less than 5,000 sf of space requires about six months; 5,000 sf to 10,000 sf takes about 9 to 12 months; anything over 10,000 sf requires 10 to 18 months.

What future growth does the company anticipate? Since moving entails expenses, companies should estimate their future growth needs and ask about expansion options, such as adjacent space becoming available or relocating to another floor or another building on a corporate campus.

Should a company consider sublease space over a direct lease? Although sublease space often is cheaper and may include furniture and phones, it usually lacks a renewal option. Sublease tenants must also take space "as is", which may mean adapting to a less-than-ideal layout.

What's the biggest mistake companies make when leasing space? Tenants with great negotiating skills may overlook the fact that they need market knowledge to bolster their position. Engaging a leasing specialist provides access to local market data such as alternative space in the market, the market's landlord / tenant curve, and comparable lease rates and terms.