Sourcing new office space can be time-consuming and expensive, but the process can also yield real benefits. This is especially true if your current space is showing any of these five signs.
Meaningfully Above-Market Rents
With many leases having escalation clauses built-in, above market rents aren't as rare as you might think. Given that many parts of the country have had flat office using job growth, it's entirely possible that your lease's annual escalations have left you with higher rents than new tenants pay -- even in your building.
However, paying an extra dollar a foot in rent isn't in and of itself a reason to go find a new office space. Instead, you will want to calculate whether moving to a less expensive space will save you money even after the costs of moving and configuring the new suite. If it is, move. If not, it might be cheaper to spend an extra dollar or two per year in rent to avoid the larger expenses.
Inflexible Configuration
Given that the world of work keeps changing, your office space should be flexible to accommodate those changes. This doesn't necessarily mean that it should be completely open, though. Instead, it means that it should have a build out that features a range of different types of workspaces. If you don't have that, you may want to consider a new location that has a more modern layout that can serve the needs of individual workers, small teams, large teams and any other combination.
The Wrong Location for Commuting
If your company moved out to a third ring suburb to accommodate Baby Boom workers, you might find that it is becoming harder and harder to recruit Generation Y talent. On the other hand, if you moved to the city to attract Gen Y, you might hear complaints from your Generation X workforce that have to commute long distance from their family homes.
Your employees know where your office space should be located. It shouldn't be where other companies go. It should be close to where they come from. Given that the highly skilled professionals your company needs to succeed can be hard to source, choosing the right location is an excellent investment.
Incorrect Size
If your office space is the wrong size, it's time to move. Once, the concern was that your space would be too small and that you'd have to relocate to support growth. However, given that higher and higher densities are becoming commonplace, it is much more likely that you will move because your space is too large. After all, 95 percent utilization -- which is a historical trigger for moving -- might be much lower if you get better at using your space efficiently.
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Weak Connectivity
In the industrial world, nuts and bolts concerns like the availability of a rail spur or of high amperage power can immediately rule a space out. While office buildings typically offer adequate utilities, data connectivity is key. Furthermore, even if a building has a fiber connection or other high bandwidth connection, wireless compatibility is also key. If your office space has dead spots for wireless service or is not configured to allow for productive computing over Wi-Fi, it might also be time for a new location.
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