Business Problems With Real Estate Solutions: Growth and Expansion 2
Growth & Expansion
I can’t project my long term growth, so I can’t commit to long term space.
Projecting future growth, headcount, and the livelihood of a young company can be daunting. Incorrectly projecting future growth of a young company can be dooming. However, an office space is vital for creating a culture, collaborating on the next best idea or critical solution, and attracting top talent. Luckily there are ways to get creative when looking for office space that can accommodate your needs while minimizing the risk.
- Coworking by local landlords: Coworking is not a new concept, but recently local owners have been establishing their own coworking brands or partnering with larger coworking companies to develop high growth companies until they’ve stabilized and are ready for a more traditional office lease. The reason we like this idea for our clients is the flexibility it provides them to quickly and seamlessly move into traditional office space from coworking as soon as they are ready. While getting the flexible lease terms and a pre-built office layout, you also get to know the owner, the building, and the area. This way you can determine if it will be the right fit for your team long term, removing the office search and move from the equation. Examples of owners doing this locally are Boston Properties, Duffy Properties, and the Petrini Corporation.
- Sublets: For a high growth company looking for a cost effective and short term location, subletting space can be a great option. Typically companies are discounting the space to fill it quickly and reduce their extra overhead cost. The benefits are a lower rental rate to help a young company get on their feet, a short lease term to determine a stabilized growth rate, and the opportunity to renew in the space or building long term if it is a good fit. However, companies looking to sublet need to be flexible with floorplans, as there is typically little room for negotiation on additional improvements or buildouts to the space.
Work with your real estate broker to review creative short-term lease options that provide you the easy transition to a long-term office lease provides you with the ability to define your company culture. This way, you can stabilize growth while also minimizing overhead costs and risk associated with taking excess space or relocating prematurely. For questions or more creative real estate solutions to accommodate exponential growth, please reach out to our Director of Corporate Services, Elizabeth Holmes – 508-655-5029.