Finding Office Space [A Horror Story]

Real stories from small business owners about office searches gone wrong, and three tips to make sure yours doesn't turn into one.

Finding office space is hard. It's even harder when you're a small business or startup, with limited time and resources to spend on activities that aren't going to make you money. Small business owners typically spend 8 to 12 weeks finding the right space, at least 120 hours. If your time is worth $100 an hour, you can imagine how that investment adds up quickly, especially for a space where you and your team will spend about 54% of your waking hours.

We spent six months interviewing and surveying small business owners and administrators, and found that most small businesses and startups rate their office search experience at 64 out of 100. Working with a traditional broker fared even worse, rated at 58. We believe you should be 100% satisfied with your office search experience every time, so we had to share some horror stories from the pre-TenantBase world.

The stories below are based on real conversations and interviews with local business owners.

Giselle's Successful Design Company

Giselle is a local interior designer, architect, and business owner who was given only 30 days' notice to move out of the sublease she was occupying at the time. Knowing that her next location would be a key move for her growing company, Supportive Design LLC, Giselle hit the ground running, searching Craigslist and driving all over town in search of available space, only to keep hitting dead ends. Signs advertised space that didn't fall within her needs, and old Craigslist ads had her chasing down unresponsive landlords. Giselle and Supportive Design LLC were running out of time. If they didn't find a space soon, they'd be working without an office to work and collaborate in.

James and the Big Bad Lease

James is a local business owner looking for his next office to house his successful, growing team. The last time he signed a lease, there were many options and concessions offered by landlords in his search area. This time, James started making calls directly to buildings, but to his horror, the market had changed. Now more landlord-favorable, the shift left James frustrated by "limited space, city growth, limited parking. Landlords expect compromise from the lessees, and landlords that feel that a lessee should 'feel lucky' they're getting the space at all, making space shopping miserable."

Realistically, James knows he should have started his search over three months before his lease expired, but now he's in a time crunch. He may be forced to accept unfavorable terms, less-than-ideal space, or a temporary solution that only prolongs his office search nightmare.

The Incredible Shrinking Market

The last thing any startup needs is wasted time. There aren't enough hours in the day to begin with. Tech founder Bobby feverishly researched and arranged tours for spaces he loved when he first started his search, only to realize those options wouldn't even work for his startup. In commercial real estate, your business history and willingness on key deal points can drastically restrict or open up your options. Bobby was looking for leases less than a year long, with parking for two or more people per every 250 SF of space, the industry standard. To his dismay, his business didn't have the long financial history most landlords require from tenants. He wasted hours, days, of time looking in the wrong places instead of being guided right to the options that catered to businesses like his.

3 Tips to Avoid an Office Space Horror Story

1. Check your current lease terms. How far in advance do you need to give notice to your landlord? Is your landlord able to cancel the lease based on their situation? Be sure you're clear on your notice and renewal clause.
2. Give yourself at least 90 days to find a space, tour it, and negotiate a lease, whether or not you're already planning a move. If a buildout is required in the new location, factor that time in too. A buildout alone can take 30 to 60 days depending on the contractor's schedule, or longer if a permit is required.
3. Keep updated on market prices. Price per square foot is constantly fluctuating. Your budget may need to look very different compared to the lease your company signed three years ago, so be prepared for what to expect once the time comes.

Your Office Search Doesn't Have to Be a Nightmare

TenantBase is dedicated to making your office space search a dream, not a horror story. It's time to get the personalized, high-quality service you deserve.

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