The Biggest Challenge for a Startup is Finding Office Space

Nowadays, creating a company is very easy, but finding suitable office space for the firm is quite another matter, which depending on requirements can take up to a month.

There are many different offerings on the market, which can make decision-making difficult. Available are old and new offices, small and large spaces, and of course co-working areas. In addition, you need to consider location, ancillary costs, and time perspective. To get more clarity on the matter, we highlight the main points to consider when searching for business premises.

Location

Generally, the rule applies that the closer to the city center, the higher the rent price. Think through whether for your startup's business operations it is important that the office is located on the busiest street in the city center or whether it would be reasonable to operate a bit further away.

Time Perspective

Next, think about how quickly you need to move to new premises. We recommend always informing the landlord about this as well, as it helps them too, for example if rooms need to be prepared or contracts need to be drawn up, etc.

Space Size

This is a point worth thinking through particularly carefully, because the larger the space, the larger the monthly costs. Although there are no fixed rules, many companies consider approximately 10 square meters per person when choosing office space.

Parking and Public Transport

Parking is a problem in many places today and is often an additional expense for the company. Be sure to inquire about the options for parking employees' and clients' cars. It would certainly be worth clarifying all the public transport options available in the area.

Budget

Be sure to ask the landlord about all ancillary costs and ask to see invoices so you can get a better overview when preparing your budget.

Contract

Contracts are of various types – they can be either fixed-term or open-ended.

A fixed-term contract means that it is concluded for a period specified in the contract and it is not possible to terminate it early.

An open-ended contract means that both the landlord and the tenant have the right to terminate the contract by giving written notice in reproducible form a few months (usually 2-3 months) in advance.

Initial Costs

The first expense in renting office space is the security deposit and the first month's rent. Generally, if it is an established company with a good background and no outstanding debts, the security deposit is equal to two months' rent.

If it is a new company with no background, this amount can be considerably larger and it can also happen that the landlord wants to receive additional guarantees.

In summary, I recommend taking your time and not leaving office space search to the last minute. Even if you have selected suitable rental premises, things don't happen overnight – contract negotiations, vacating premises, etc. can prolong this process quite a bit.

Article source: Uus Maa Real Estate Office