NFIB

Moving From Your Home Office
05/ 20/ 2004

by Vicki Gerson

If you're considering moving out of your home office and renting space, there are many factors to consider. After all, home-office space is the least expensive way to run your business. When your business grows beyond your home, here are some options to look at before you actually sign a lease agreement or decide to purchase your own space.

Consider bartering for space: When you are short on cash, consider bartering for space for a short period of time. Check out the companies that may have extra space and see if they would be willing to swap their space for products or services. However, keep in mind, every move you make means changing your letterhead, business cards and phone number.

Lease one room: Companies that are in a growth mode often lease spaces that they plan to fill in a few years. While that space is unused, the firm may be willing to sublease the space to you at a lower rate than it would cost you to lease space directly from a building owner.

Be sure to draw up an agreement on the length of time you can stay. You may want a one- or two-year agreement. Also check to see what services come with this agreement. For example, will the company's receptionist answer your phone calls? Can you use the equipment such as the copier and fax machine?

Lease space directly: Depending upon your business, look for office-vacancy signs or for-rent signs. Drive around the neighborhoods you'd like to rent in. Check the outside of the building to see if it's well maintained. Also take notes on the parking situation. If you have employees that use mass transit, will this location be easy for them to get to get to work?

Be sure to walk into the lobby. Is it well lit and clean?

Check out the bathrooms as well. If they look dirty or have old plumbing, faucets that don't work or cracked mirrors, there may be other hidden factors indicating poor upkeep.

Be sure to check the fire exit signs and hallways for cleanliness. You also want a building that is accessible for disabled workers and customers. If it's building with an elevator, how are they working? Do they come quickly and look clean?

Make sure you talk to a few of the tenants in the building, asking what they like and dislike about renting space there. In addition, discuss building security for the daytime and evening hours.

Try to talk with the owner of the property, not the leasing agent. Agents are paid a commission on the rent. If you can cut out the middle man, you have more room to negotiate.

Even if you must talk to a leasing agent, find out exactly what the landlord pays for and what you are financially responsible for. Also ask if your office will be painted as part of the new lease. Be sure to discuss build-out fees and whether you must use the landlord's contractor or can bring in your own.

The final step: After you have decided on a location and have a written lease, don't sign it yet. Make sure you show it to your attorney. If changes are necessary, have your attorney talk to the landlord.

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