How to Project Total Cost of an Expansion or New Space (Office, Industrial, Retail)
Are you trying to decide whether or not you should lease space? Whether this is your first or 50th location, this guide will give you insight on how to work with your WorkSpace Agent to get the answers you need to move forward (or not move forward) with confidence.
Considering Real Estate cost is second only to the cost of HR for a company, there are a multitude of questions that should be taken into consideration when factoring in a new space:
- Am I certain how much space I will need?
- Why do I need space?
- When do I need space?
- What would happen if I did not acquire new space this year?
- What is the “value” of the space needed to the company?
- How do I determine the value of the space to the company?
- How can I justify the expense if asked by a company Stakeholder?
- How long do do I need the space for?
- How flexible do I need the lease to be? (How long do we need to be there)
- What other team members will be making the decision? Have they offered input?
- Do we have a consensus on location, desired amenities, term, etc?
- What are the market conditions in the areas that I would require space?
- What does it cost to move my equipment, furniture, etc.?
- What does it cost to install my equipment, furniture, etc.?
- What would be the total cost of moving?
- What would be my total monthly/annual cost for rent (also accounting for inflation, increases in CAM or NNN, etc)
Knowing the answers to the questions above is a great start, but be sure to discuss with your WorkSpace Agent about our process that will take you through this long process efficiently without missing important steps.
