The current climate may seem like a great time to secure office space. Landlords want to make a deal, bargains seem to abound; space that was out of your league 2-3 years ago now seems within reach.
Is now the time to leave your home office? Should you make the leap to commercial office space?
Let’s say you run your numbers and, yes, you think this is a commitment you can afford to make over the next few years. As I mention in my article, “Look Before You Lease,” here are two significant issues to consider:
1. What’s your exit strategy? Will the lease give you the flexibility to assign or sublease the space if you can’t continue to make the payments?
2. What are the real costs of taking this space? Yes, you may have accounted for the rent, but what about additional rent items like utilities or taxes? What are your anticipated construction costs for building out (or renovating) the space? What kind of maintenance or upkeep costs will you have (especially if yours is storefront property)?
Economic times are still turbulent, so it’s good to have a Plan B. Make sure you’ve worked it out with your accountant and attorney so that you’re protected–whatever you choose.
