Every company, at a certain stage of growth, would need to rent an office and/or retail space. This can be a stressful activity, but is important to the company as it forms the infrastructure of the workforce. For retail businesses the choice of retail location can mean the difference between success and failure of the business.
What makes a good office location?
- Ease of access
- Amenities (Wifi stability, Pantry, Furnishings)
- Fixed desks & furnishings
- Good meeting rooms & AV setups
What makes a good retail location?
- High foot traffic
- Close to transport / train stations
- Presence of anchor tenants such as large supermarkets or department stores
- Destination point for traffic rather than transit point with circulating rather than linear foot traffic
- Brand perception of neighbours and upkeep of surrounding environment
- Standardised opening and closing hours enforced across the property
- Air-conditioned/climate controlled walkways from major transport points
- Ample parking
Main price factors
- Length of Contract (longer contracts can have reduced prices)
- Level of Amenities/Services (is there a shared receptionist or other service?)
Rental prices heavily depend on location.
Tips, tricks and challenges
- The largest cost to you will be the rental deposit, which ranges from 2 to 6 months depending on the market you operate in. Keep this in mind when budgeting.
- Identify in advance what activities your staff will be doing when choosing a rental location. What amenities will they require? Meeting rooms, distance to food/coffee/pantry, furnishings, fixed desks, wifi stability etc. will all affect productivity of your staff and will determine how motivated they are to operate there.
- Larger spaces (office and rental) are cheaper. So large-format offices and stores are more cost-efficient on a per square foot basis. Some retail chains put multiple stores of different brands in a single large retail space, reducing the per square foot rental cost by as much as 30-40%.
Some advice from other buyers
- “Ask current tenants / neighbours what it’s like to work in that location. Is there good food around? How productive do they feel working there”