Finding Office Space As A Startup Company

Find and Rent Office Space: The Options For Startup Companies

Despite the challenges presented to the business world in the past few years, the startup economy is booming. The surge of new businesses means that plenty of new business owners are finding themselves looking for office space to call home. But how do you start the search process or figure out what kind of space is best for your company? Start by considering your options.

Coworking vs. Dedicated Office Space

One of the first things to think about while looking for space is to consider which type of office space best fits your business’s needs. Most companies find themselves choosing between co-working spaces and their own dedicated office spaces.

Coworking spaces have become very popular in the past several years. These spaces require shorter lease terms, allowing for flexibility for growing companies. They also come with the financial benefit of having lower up-front costs, since buildout is already complete and the space is fully furnished. The downside to coworking space is that the pricing comes at a higher cost per square foot. Additionally, it is more difficult to brand and customize the space for your individual business.

Conversely, dedicated office spaces allow a company to have full control over the design and buildout of their space, customizing it to their specific needs and branding. Despite typically being a lower cost option per square foot compared to coworking, this office structure comes with some additional costs. Companies require significant up-front capital costs for both the buildout and furnishing of the space. Landlords also often require longer lease terms here in exchange for tenant improvement allowances, which is money that can go toward these costs.

Where to Start When Searching for Office Space

In general, taking the beginning of your office search into your own hands is a good way to begin. Simply driving or walking around your desired office areas can give you an idea if that specific area is the right location for your office. Additionally, many office spaces will advertise availabilities with leasing signs on their buildings. There are online resources, such as LoopNet, that will also advertise office vacancies. Also, reach out to your network to see if friends, acquaintances, or peers have ideas for you.

Talking to a broker is likely in the best interest of your business. Trusted real estate advisors have access to specialized online databases, such as CoStar, which provide insights, information, and tools to aid in the site selection process. As established commercial real estate professionals, brokers also have unique industry insights into both the site selection and negotiation processes that will be exceptionally helpful.

Questions to Ask and Things to Consider When Leasing Office Space

Whether you work within your own resources and network or hire a brokerage professional, it’s important to ask yourself several things before making any leasing decision.

1.       Does this space work well for my future growth?

2.       Can I expand or contract in my space?

3.       Will this be a good location for both my employees and clients moving forward?

Also, remember that this process will take 3-12 months. The timeline could be shorter; however, it is wise to anticipate a longer process if you are being thorough with your site selection and negotiation process.

If you are a startup looking for space for your business in the Twin Cities, reach out to a Rokos broker! We can help find the best option for you and your business today.

Rokos Advisors is an award-winning Minneapolis – St. Paul based commercial real estate/tenant representation firm specializing in helping businesses find the perfect office or industrial space for their company.