The operation of every organization involves reaching a stage when the need to change its headquarters arises. There can be many reasons for this: further growth and the need for more space, the desire to move to a more prestigious location, reducing rental costs, or changing the work model and optimizing the use of the available space.

Regardless of the reasons for relocation, leasing office space is a complex and time-consuming process. This means that the decision to change headquarters should be planned several months in advance. This undertaking requires not only patience, but above all, proper preparation.

Start by Defining Your Needs and Assessing Your Options

Alongside the question, “Should we relocate?”, it is also worth asking a second one: “What do we really need?”. Changing location is not merely a matter of changing the address in the National Court Register (KRS), but also affects, among other things, employee comfort, their willingness to work from the office, and, above all, the company’s image. The lease of new office space should therefore be viewed not only as an item in the OPEX and CAPEX columns, but as an investment in the well-being of the entire company.

Below, we present 3 key aspects that a company should analyze before starting its search:

1. The Company’s Work Model

Conducting an internal analysis makes it possible to understand which work model the company operates in – which departments benefit from the hybrid work model and desk-sharing system, and which require permanent workstations. This will make it possible to determine the optimal amount of space and avoid paying for unnecessary square meters in the future. To estimate the amount of space that will be needed for the team, you can refer to market standards, which determine the number of square meters per employee:

• 6–8 m²/person – a dense model, characteristic of large operational centers (e.g. BPO/SSC),
• 10–12 m²/person – an optimal model, providing a balanced ratio between the work area and additional spaces such as conference rooms, a kitchen, etc.
• 15 m²+/person – a comfortable model, often found in creative industries.

When estimating the required number of square meters, planned recruitment or restructuring processes within the company should also be taken into account.

Net area vs. gross area – see the previous article.

2. Rental Budget

Already during the internal analysis, we should start defining the financial framework. The budget should be defined based on the company’s capabilities. It is important that the financial assumptions are included in the operational plan for the coming years of the organization’s operations.

You can read more about planning the office lease budget in the article “Office Lease – Prepare a Budget for Peace of Mind”.

3. Location

Knowing the answers to the questions asked earlier, we can focus on the location. One of the first questions a real estate advisor will ask is what area we are considering – whether we are focusing on a specific district of a given city or allowing ourselves to conduct a broader search. It is worth gathering information on which means of transport our employees use, where they commute from and how often they travel to the office, as well as how much time they have to spend commuting. If the company receives visitors, it is also worth asking ourselves how our business partners travel to us, whether they use public transport, or whether we should provide them with access to a parking space.

From General to Specific – The Office Leasing Process Step by Step

# Longlist and Shortlist of Offers

Having defined our basic needs and capabilities, we can begin the so-called “longlist” stage, which involves a broad review of the locations available on the market that meet our requirements. Based on this, we usually select three to four buildings, creating a so-called “shortlist” and planning personal viewings of the space. At this point, the entire process stops being purely digital, moving beyond the virtual reality of emails and spreadsheets. On-site meetings allow us to get to know the building and its surroundings, verify the technological solutions and familiarize ourselves with the standard offered. Viewing a space that we have previously seen only on floor plans and in photographs will help us decide whether this is the location we are looking for.

# Initial Commercial Offer

At this stage, there are usually two to three locations “in the game”, and it is from these that we receive the initial commercial offer. The Landlord presents the asking rental rate, confirms the scope of service charges and any other applicable costs, as well as additional financial incentives, such as the Landlord’s contribution towards fit-out works (fit-out budget) and the proposed rent-free period (rent-free period). Here, we return to our tables once again and compare the data received. At this stage, we can clearly see whether we are within budget or whether we need to adjust our expectations to reality.

# Space Plan

Before making a decision, it is worth looking at what our new office space could look like. A space plan, i.e. a drawing serving as the functional plan of the future office, is invaluable in this respect. It shows whether our assumptions can be translated into reality and whether the layout planned in advance allows for the optimal arrangement of equipment. These are not the only reasons why a space plan remains an important part of the entire leasing process. A properly prepared drawing allows the office space to be planned and divided into appropriate zones and, consequently, shows whether the planned area will allow the company to operate effectively. It may turn out that the final space will need to be increased, or, on the contrary, that the initial assumptions were too ambitious and the same functionality can be achieved in a smaller s

# Cost Estimate for Fit-Out Works

Once the space plan has been approved, we move on to estimating the cost of the fit-out works. Preparing a cost estimate for adapting the space may take between 2 and 3 weeks. The waiting time for the estimate can be used, for example, to review the provisions of the lease agreement and begin negotiating individual clauses. This allows for significant time savings and enables the process to be conducted on two tracks.

# Lease Agreement Negotiations

Discussions at the proverbial negotiating table are not only about negotiating the final rental rate or increasing the Landlord’s contribution towards the cost of fit-out works. There are many other factors whose inclusion in the lease agreement can help satisfy both parties and avoid potential inconveniences in the future. When negotiating a lease agreement, it is worth focusing on protecting your interests in the long term. Pay attention to:

• establishing the indexation rate and any limits on increases, which in the future will protect the company’s budget from inflation-driven increases,
• clearly defined allocation of responsibility for fit-out works,
• the possibility of subleasing or priority to lease adjacent office space.

# Start of Fit-Out Works

Signing the lease agreement does not, however, mean the end of the entire process. It gives the “green light” for the fit-out works to begin. This is therefore an intensive period of space arrangement works, and proper supervision of this stage ensures that the premises are delivered on time. Once the fit-out has been completed and the space adapted to the new tenant, the handover of the premises and new office equipment takes place, which should also be planned in advance and included in the process schedule.

Leasing office space is therefore a complex process that requires the initial assumptions to be reviewed repeatedly, flexibility and, quite often, patience. When carried out carefully and effectively supervised, it not only helps save time and avoid unnecessary stress, but also allows available resources to be used efficiently and optimal solutions to be found for each organization.

Are you looking for comprehensive advice on office real estate? Contact us:

BNM – Real Estate Advisory
➡️ [email protected]
➡️ +48 574 238 708