Chapter 8 covered topics on how to assess the office space for your business.We explored what considerations to make when assessing an office space.We then determined the factors that will help decide whether this is the right office space for your business. We discussed other needs a business requires and the importance of the office layout for staff and customer flow. We discussed the importance of space allocation for administrative staff and lounge areas for ancillary staff and professionals. We then discussed the impact renovations can have on the office and how those improvements can be made within your budget.Lastly, we showed the value of having additional specialty areas in your office.The following exercises will help reinforce the concepts presented in the textbook.
Key Terms
TIA - Tenant Improvement Allowance
In a commercial lease negotiation, a TIA is an agreement from the landlord to compensate the tenant for all or a portion of the funds required to construct or renovate the commercial space to be leased.
Expected Outcomes
Know what considerations must be made when assessing an office space
Know the factors that will help you decide whether that office is the right fit for your business
Understand the special needs required for a business
Understand the importance of the layout of the office and how customers and staff will flow through it
Have determined the space allocation for office services and staff.
Understand the impact of renovations on the office and on your budget.
Understand the value of having additional specialty areas in your office
Key Concepts
Having decided on what services you want for your business will provide criteria for you to meet when visiting different office spaces.
Establish a customer flow for customers and how you want your employees to perform a workflow.
Being aware of what type of office was there previously can help determine if it is worth the effort to renovate.
Consider how many rooms, offices and ancillary areas you will need,and what compromises you can make based on the office space.
Be sure there is sufficient storage.
Get a sense for how the office feels and put yourself in their shoes to feel how they will view the office.
Consider what is needed to renovate versus what you would like to renovate. Minimizing costs at the beginning will go a long way in helping you when unexpected things arise.
Put half your budget aside for unexpected costs.
Purchase only what you need. Don’t spend money on extravagant items or unnecessary items.
Consider the need for additional areas for specialty services like the lab, pharmacy, and retail space.
Chapter Slogans
How does it feel?
What needs renovation?
Don’t be in a rush.
Be open to alternatives.
THINGS TO CONSIDER
1. Remember, don’t be in a rush. Be open to alternatives. You may love the space, but logistically and fiscally it doesn’t work. There will always be another office space.
2. Having a clear vision of what you want your business to be, and making a mock layout of how you want your business to function will make assessing different office spaces easier and more effective.
3. Knowing that certain equipment requires certain utilities (i.e. dedicated electrical lines, special plumbing, etc.), decide whether the service that requires the new utility installation will provide a worthwhile profit margin and it is worth the cost for the utility installation.
POUND THE PAVEMENT
1. As you live your life, pay attention to businesses you patronize. How is their space utilized? Does it make for an easy flow for customers? Is it open and spacious, or stuffy and cramped? Are they trying to fit 100 tables in 10 sq/ft to maximize profit over customer experience? How does the space make you as the customer feel?
2. As you explore potential offices with your broker, walk through the space. Envision your business, how you want it laid out. Assign services to rooms in the space, then walk through the space as if you are the customer having to participate in those services. Is the flow fluid or jagged? Is it spacious or cramped? How does the flow and space make you feel? How do you think the customer would feel?
