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Understanding The Pertinent Factors Involved In Renting An Office Space

When a medium-sized business is planning to move to a new location, it stirs both trepidation and excitement among the management as well as employees. The relocation in most cases affects the customers either positively or negatively. By taking into account all the aspects that determine which office space is best suited for business operations, the management is able to maximize enthusiasm and minimize worry. Furthermore, they are able to boost the company’s long-term financial position and competition. Here are four important factors to consider before relocating to a new office space.

Price

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As important as the normal monthly costs is the search for new office space for lease in Toronto. Medium-sized businesses are recommended to keep the range of possibilities as wide as possible as the costs of leasing new office spaces can dramatically affect the return on investment. For example, a firm might decide to relocate to premises where the monthly rent is 15% more than its current space. However, with improved reputation, reduced ancillary costs, reduced turnover, increased sales and acquisition of strong new talent, the new space could generate revenue and savings well in excess of that extra cost, and all within a very short time.

Property management

Since the new office building’s property manager will be nothing less than a partner, the business owner is required to interview the present tenants about their experiences and relationship with this particular person. If they can’t talk about the property manager, or even his supporting team, then the prospective company should have reservations about relocating there, or even occupying space in this particular property. But should the firm find the space highly appropriate for its operations, the leasing committee must negotiate a contract that contain specific stipulations and time frames for action, along with penalties or remedies for when the current property manager fails to act in timely and satisfactory way or manner.

Amenities and features

A firm’s management that seeks the best lease or rental rates is advised to learn more about each of the available potential office spaces for lease or rent. They must also learn about the space’s efficiency. For example, one space equal in size to another might be ten percent cheaper per month, however, around 30% of the same space might be rendered impractical for business purposes due presence of things such elevator lobbies, bathrooms or hallways. On the other hand, if the other location only has 10% of unusable space, or the load factor, it means that each space’s value to the company will be much closer in comparison.

It should be noted that the total cost of occupancy is directly affected by the strength of the building’s human, mechanical and technological support systems. For instance, if a company needs a reliable fiber-cable system, the office space buildings without this feature must never be considered, in particular because retrofitting can be quite costly. Furthermore, if a business has or will eventually have power requirements that go beyond what is considered standard, then it must assess whether the installed electrical infrastructure is cost effective and sufficient. Since the top complaint of a majority of commercial building tenants is to do with air-conditioning, ventilation and heating issues, any office space for rent or leasing with outdated HVAC systems must not be considered since these tend to be overly expensive to retrofit.

Janitorial and repair contractors need to be vetted by asking the current tenants about their experiences with the present building’s management. The vetting can also be done though directly interviewing the present tenants. Potential tenants also can interview people in other buildings that use the same contractors in regard to their past experiences with them.

Location

Consider the opinion of your employees and customers regarding the new location you are about to relocate to. Their concerns and worries regarding this location must be considered right from the start. For instance, their commute time is something of a paramount importance since it can add up to significant amounts of money, time and effort. So, it is critical to determine where all your employees live in relation to the new office. Apart from this, parking space must also be considered since not all commercial buildings have own parking lots. If a number of your employees can occasionally work remotely, this widens the geographical possibilities while reducing the amount of parking space that is required.

The neighborhood you are relocating to must also be given a consideration. To start with, the neighborhood must be desirable to your customers. Your employees also must feel safe in the new location. Apart from this, the area should have sufficient retail services to accommodate your people’s needs. Furthermore, the management must determine whether it is crucial for the business to be located near its biggest supporter or customers, or at a healthy distance away from some of its worst competitors.

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