In this article, you’ll learn:
- Key factors to assess during an office tour, like location and layout.
- How to evaluate office amenities, technology, and security.
- Lease terms to watch for, including rent escalations and improvement costs.
- Why taking pictures and working with a tenant rep are essential steps.
The Office Property Tour Checklist is designed to help you remember everything you need to do when touring a potential office space. By following this checklist, you can be sure that you’re taking everything into account. Your Tenant Rep should be your guide on this and make the process painless and perhaps even pleasurable.
Oh, and consider this list a teaser. Be on the lookout for our downloadable 20-point checklist that will offer a much more comprehensive account of everything you should look out for on your tour so you can step up your CRE game even more.
9. Renovation Costs and Tenant Improvement Allowance
1. Location
Consider the location of the office space. Is it easily accessible for employees and customers? Is it in a safe area? Is it close to public transportation? When considering the location of office space, you’ll want to think about accessibility for both employees and customers. For example, is the space easily accessible by car or public transportation?
2. Size
When considering the size of office space, you’ll want to consider your current needs and future expansion. How many employees do you currently have? How much space does each employee need? Do you anticipate hiring any new employees in the near future? These are all essential factors to consider when choosing a size for your office.
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Sometimes it pays to be a small fish in a big pond as it affords you expansion options in the future. |
Getting space that just fits you now can be like buying a pair of snug shoes. It doesn’t take long to realize you’ve made a painful mistake. Keep in mind that most leases are at least five years long.
3. Layout
While layouts can be changed, you need to look at these things:
- Is the layout of the space functional?
- Does it make sense for your team’s needs?
- Are there any potential changes that would need to be made to make the space work for you?
- Does this site require more extensive changes than the alternatives?
4. Amenities
When considering the amenities included in an office space, you’ll want to think about what your team needs to be productive. Is there a cafe or restaurant in or near the office building? What other amenities does this site offer, such as a gym or large meeting rooms outside your space that may be rented? These are all important factors to consider when choosing an office space.
What amenities are included in the building? You’ll also want to think about the surrounding neighborhood. Is it a busy area? Are there any restaurants or shops nearby? Is it safe to walk around at night? These are all crucial factors to consider when choosing a location for your office.
How about common area WiFi access for your employees and guests? Does the office building offer that? Make sure you’re choosing an office space with all of the amenities and services your team needs.
When choosing an office space, there are many important factors to keep in mind. By considering the space’s size, layout, amenities, and services included, you can be sure that you’re choosing an office that is both practical and comfortable for your team.
5. Technology
Is the space equipped with the technology you need? For example, do you have access to high-speed internet? Is there enough power, and are there enough outlets for all of your computer equipment?
6. Furniture
If this space is a sublease, then you may be able to acquire the furniture for cents on the dollar, or they may even throw it into the deal. If so, is the furniture in good condition? If not, will you need to purchase new furniture, or can you use your existing furniture?
7. Lease Terms
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Within a lease, there are countless dangerous lease terms included. Make sure you’re covering your bases by initially considering:
- How long is the lease?
- Are there any renewal options?
- Expansion options?
- Are there any hidden fees?
- What is the rent, including all charges:
- Annually
- Per square foot
- Monthly
- Are there any restrictions on how you can use the space?
- And much, much more – this is where your Tenant Rep can offer critical guidance.
8. Rent Escalations
How about rent escalations? This must be figured into the analysis. This is a complex analysis, and your Tenant Rep can provide you an Apples to Apples comparison of the true cost of occupancy (it’s not just the rent) of all sites you are considering.
9. Renovation Costs & Tenant Improvement Allowance
Commercial real estate is a non-homogenous product. Each site is different, and each tenant has different layout and design needs. This is where you need to go deep. It’s not just the rent per square foot. It’s how much this site is going to cost to renovate to meet your needs. Then, how much of those renovations is the landlord willing to cover?
- Estimated renovation dollars needed?
- Estimated (but not fully negotiated yet) Tenant Improvement $ from the landlord?
- Are you going to need to contribute to the renovation expenses?
- If so, can these costs be amortized into the lease?
- If so, at what interest rate?
As you can see, this can be a complex analysis. It can’t all be done at first glance during the property tour, but you can get an idea that one site will require much more renovation than the alternatives. You may also get an idea of how flexible the landlord is then, or you may not then, and it will require extensive negotiation by your Tenant Rep (which is typical in the lease negotiation process).
10. Parking
Is there adequate parking available? Is it free or discounted for tenants? Is it close to the office space, or do your employees need to take a long walk on a cold and rainy day? Does it have sufficient parking?
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If you plan on allocating 200 square feet per person, that turns into five parking spots per 1,000 square feet. |
So, you need to ensure the site you consider has at least that much parking or more.
11. Move-In Costs
Don’t forget about the move-in costs. What are the costs associated with moving into the space? Once you get down to a few finalists, you can get estimates from moving companies. Be careful not to identify the particular building, but rather give them an approximate area of town. They talk to brokers and landlords all the time, and word would get out as soon as you hang up the phone. How does that compare to the alternative sites?
12. Utilities
What utilities are included in the lease? Are there additional charges for things like heat, air conditioning, or electricity? Getting clear at this stage will avoid any surprise charges down the line. Touring will also give you the chance to see these features for yourself. Does everything appear to be clean and well-functioning? If not, remember those points when negotiating your tenant improvement allowance.
13. Internet
Is high-speed broadband run to the building? Are there multiple providers? If not, what is the cost of adding it? A Reliable internet connection is more important now than ever. Employees will likely need to collaborate with remote or hybrid employees. As such, you can’t take any risks with productivity loss due to unreliable wifi.
14. Security
Is the space secure? Are there security guards or cameras? Is there a gate or keycard access system? Your corporate offices need to consider the safety of your people.
15. Landlord
Is the landlord responsive to your needs? Do they seem easy to work with? Are they willing to make any necessary repairs or changes to the space?
16. Corporate Neighbors
Who are the other tenants in the building? Do they seem to be happy with their space? Are there any noise concerns?
17. Maintenance
Is the space well-maintained? Are there any signs of disrepair? Are the common areas clean and well-kept?
18. Neighborhood
What is the surrounding neighborhood like? Is it a busy area? Are there any restaurants or shops nearby? Is it safe to walk around at night?
19. EV Charging Stations
Electric vehicle (EV) charging in office building parking lots can be an excellent amenity for employees and customers. It can also help to attract new tenants and customers to your business.
There are a few things to consider when adding EV charging to your office building parking lot. First, you’ll need to determine the best location for the chargers. They should be easily accessible and close to parking spots. You’ll also need to decide what type of charger to install. Level 2 chargers are the most popular, as they can charge an EV in a few hours.
EV charging can be a great addition to your office building parking lot. It’s a convenient amenity for employees and customers and can help to attract new tenants and customers. With a bit of planning, you can make EV charging a success at your business.
Once you’ve installed the chargers, you’ll need to promote them to your employees and customers. Let them know that you have EV chargers available and encourage them to use them. You can also offer discounts or other incentives to encourage people to use the chargers.
20. Take Pictures
Last but not least: You can’t get through the touring phase without using it as an opportunity to take pictures. Just like hotel rooms, you can be sure that the presented pictures of the office (that you don’t take) will only highlight the most flattering aspects of the space.
If you work with a Tenant Rep, they will provide critical assistance through this stage. The right Tenant Rep will conduct a pre-tour where they go through the space and photograph it for your reference. Then they will help you cull through the information to make the optimal decision.
Tour Offices with a Tenant Rep
Touring an office space can be a daunting task. This is a BIG financial decision. And you are making a commitment for a period of time. That is why you want your own expert, who has no conflicts of interest, to be your guide.
Hopefully this checklist has helped you consider the crucial factors when touring an office space. Keep these things in mind, and you’ll be one step closer to finding the perfect place for your business! But, touring is only part of the office space search.
Want to learn everything you should know to find the right office? Luckily we have a course for you. Enroll today to be fully prepared for your office search, save millions, and cut your time in the process.
