If you are on the look-out for office space, then, availability and budgeted rentals are two factors you need to consider. But, apart from these primary factors, there are many secondary aspects which can affect your daily operations and manpower productivity.
Analysis of neighbourhood profile, branding and visibility, infrastructure, communal facilities and security issues are known to have been more prevalent in retail sector, but with a new wave of multinationals and corporates establishing themselves with large area requirement, the commercial real estate sector in the country is changing. Besides, the average term of lease varies from three to nine years, with most of the conventional leases for corporates are confirmed for nine-year contracts.
A long-term perspective further underlines the need to conduct an essential check on a series of external factors that influence businesses directly or indirectly.
* Legal documents: Review each document carefully including approvals for possession. Confirm whether the landlord has authenticated title papers and he has legal rights to further lease/sell the property. If required, hire an experienced consultant who can offer you genuine advice on legal formalities or enroll your legal advisor to verify the documents of the title of the property under consideration to avoid any struggle or misunderstanding or fraud involved in it.
* Authorised power and water supply: Though most of the builders claim to have authorised power and water supply, it’s important to check if these claims are authentic. It is difficult to run operations on power backup in the absence of regular supply.
Additionally, fancy facades and marble interiors call your attention to check the profile and expertise of the facility management agency appointed by the developer.
It is the agency’s responsibility to facilitate the physical operations of the building starting from general repairs, cleaning, plumbing, lighting, building maintenance and security. Review the agency’s services and their fees which are usually referred to as maintenance charges to be paid monthly or quarterly.
* Infrastructure: Well-connected roads and good infrastructure make it convenient for visitors and employees to reach their workplace on time without too much of a hassle which in turn increases productivity. Improved infrastructure also ensures better property value in the long term. Also ensure that extreme weather conditions like heavy rainfall and storms have no adverse effect on the building.
* Security: Security is an important area of concern when it comes to office spaces. The area in and around the office should be well lit. There should be enough streetlights and moving traffic during late hours so that employees (especially women) can feel safe at odd hours as well. This can have a large impact on the morale of employees and can keep them motivated.
* Visibility: Try to get better visibility on the building premises by obtaining prominent signage space on the building façade. Though landlords may grant permissions in the first case, a consultant can help you by negotiating on such terms.
A clear signage placed at a prominent location on the building will help in strengthening your identity and presence. This is specially so, in the case of buildings with wide frontage. A signage on the front may come at a premium but it is usually worth spending.
* Premium neighbourhood: Check for the neighbourhood profiling, quality of construction, availability of restaurants in the vicinity; presence of premium properties and hotels all add value to the address. It is also the value of the location that will give you better chances of refinancing. Before you buy, research the neighbourhood well.
* Easy accessibility with public transport: In order to recruit employees from a broader geography, it’s helpful to be near a public transit station. Though the building need not necessarily be located on the main road, try to select a space with a clear approach.
* Competition placement: Mapping competitor’s placement is significant for your business growth. You need to be in step with the competitor’s approach or you may stand to lose your customers to other operators.
* Check for residential set-up: Residential areas around the office complex assures you manpower availability. Locating your office in a space that offers no scope for growth of the business and the company will not give you the opportunity to obtain highly skilled employees.
* Access to clients, vendors and dealers: If you have frequent visitors then you would want an address which is easy to find and logistically convenient for material transfer. The approach should be clear and quick.
Usually, space occupiers have a tendency to focus on supply factor, market trends and prevailing rentals, conduct an empirical investigation and look beyond the wall and roof design to ensure an effective space acquisition. Though minor, careful consideration of these factors will help you choose the optimal location for your office.
Hiring an expert consultant always helps in locating the right space and conduct detailed investigations on minor and major points affecting the business in long term.
Above all, a consultant can also provide you comparative analyses of all the property options available that suit your space requirements in the preferred location, negotiate lease terms, thus ensuring that you get the best value for every penny spent on real estate.