A Beginner's Guide to Leasing Office Space

By Brian Kidder

It can be a challenge finding the perfect office space for your business—one that encourages productivity and teamwork. If this is your first time leasing office space, our guide will take you through each step of the process.

Steps to leasing office space

1. Identify the ideal office environment

While you may be able to visualize an ideal workspace setup, it's important to know your minimum square footage requirements. Here is a list of recommended square footage for the following areas:

• Small meeting room (2 to 4 people): 100 square feet
• Large meeting room (4 to 8 people): 150 square feet
• Board/conference room (15 to 30 people): 220 to 300 square feet
• Kitchenette: 100 square feet
• Manager’s office: 100 square feet
• Senior manager’s office (with a small meeting table): 200 square feet
• Small server room (1 server rack): 40 square feet
• Large server room (4 server racks): 120 square feet

In addition, you'll need to figure out how much space your employees will need. A good rule of thumb is to try to allow a minimum of 100 square feet of office space per employee. Keep in mind that your staff may be less comfortable in crowded offices in our post-Covid age. Also, take into account staff members who may require additional desk space for blueprints or graphics.

While adequate square footage is very important, there are other questions to consider before leasing office space: What sort of office will encourage your business and staff to thrive as a team? Can your company function in an open-plan office? Will you need private offices for staff—executives who conduct confidential calls, and salespeople who spend their days on the phone or in video meetings?

Lastly, when leasing office space, think long-term. Do you expect your business and staff to grow considerably during the course of your lease? If so, make a rough estimate of staff additions. These will also help you to decide the ideal sizes of meeting rooms and other shared spaces.

2. Begin your search

Once you know the size and type of office that you will need, it’s time to start looking at available spaces. As you review offices, there are additional considerations beyond size to consider. For example, if your business frequently ships items to customers, you’ll need convenient access to mailing or shipping services. This could be located in your office building or at a nearby location.

Safety and security should be a big priority. Ask plenty of questions about the types of security and safety offered in the building. This may include key card access, security cameras, after-hours security guards, and a “panic room” in the event of an emergency. Find out if there are areas in the building that can provide safety during unexpected weather events, such as tornadoes.

Be sure to ask how the building is maintained and who is in charge of managing those duties. If you anticipate any technical or mechanical issues, they should be addressed as soon as possible so as not to interfere with your staff’s work.

The physical location of the office also needs to be considered before leasing office space. Choosing a location that takes into account the needs of your staff will yield future dividends if you can keep your existing staff. Is the new office located in an area that's convenient for most of your workers? Check out public transportation options if you’re in a larger city. An area with popular amenities, such as cafés, restaurants, and shopping, will be viewed as a positive by your staff. Finally, everyone at the company should feel safe when they're at work, when they are walking between the office and their vehicles, and when they access public transportation.

After you have visited several potential offices, reviewed your notes, and then chosen a final winner, it’s time to make it legal.

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3. Signing the lease

Before you put pen to paper, read every page of your lease agreement. Ideally, you should take the unsigned agreement to an attorney before signing. If this isn’t possible, ask a business acquaintance with relevant experience to read through the lease.

If any section is difficult to understand or causes concern, discuss it with the property owner or manager. You may also want to ask for discounts. One popular strategy is to offer to sign a long-term agreement in exchange for a rent discount.

Remember, your lease is not final until you sign it, and you have the right to ask that it be amended.

4. Customizing your new office

After your leased office space is fully furnished, set aside some time for your staff to personalize their new workspace. Since a new office is something to celebrate, why not make a party out of it? Reserve an hour or two for a staff decorating event. Also ask your staff for suggestions on how to decorate common areas, such as the break room or meeting room. Small prizes can be offered to encourage participation.

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