Why Now Might Be The Time For Office Or Retail Space

minneapolis building downtown

How? Isn’t It A Bad Time

Let’s start out by saying it may not be for everyone, but for those that are opportunistic its there. Finding affordable office space is definitely within sight for many small business that need to expand or that witty start-up entrepreneur that needs to get out of the parents basement.

Just like residential properties, landlords in the commercial real estate realm are struggling to move properties. With that comes lower prices and affordability for people looking at moving into starting a business during this “recession”.

Here are a few basic things to look for when looking into the right space: know the Twin Cities commercial market, negotiate a good deal, be open to compromise and be flexible.

Workspace As An Identity

Your workspace is huge, it is not only a place to work – it is your identity for your business. Never look at it as just solely an expense, potential clients or customers are going to be seeing your space as well if you are looking at store front. Even if it is not going to be visible, understand that you will also be building corporate culture (see Facebook office culture or Google Plex)

Let’s not forget about local amenities as well for your employees as well. Does it have a cafeteria if in an office building or close to restaurants, not everyone likes the brown bag lunch. Many will have to bring it back to a desk to eat or shared space. Also things to consider are receptionist area, computer and phone services, conferences rooms, work spaces, copier/fax, et al.

Types of Spaces

Executive spaces are a great place to start. They are fairly flexible and sometimes allow freedom to move on a short term notice. Rates are typically well within a startups budget and some places offer a admin assistant that will take care of phone calls and other things. You might also think about looking into a virtual assistant or outsourcing basic office tasks.

If more office space is needed in the 1000 to 5000 square foot range, difficulty in short term lease is hard. Most landlords are looking for larger firms or longer leases of five years or more. Then again, just like any market… it all depends on the needs, wants and price which fixes anything.

Subleasing is another option for a short term lease but it might be a struggle for tenant improvements. For a company that doesn’t need a lot, it is a very cost effective strategy.

Anyway you go, tenant rep firms are great to favor a negotiable lease and free of charge. (AKA Ladin Ventures ;-) )

Tips To Move Forward

Leaving off with some places to start:

  • Check out some executive spaces or coworking ideas
  • Ask a commercial real estate advisor
  • Subletting may be a viable option to start
  • Don’t forget about proximity to employee homes, customers and clients

If you have any questions or ideas, drop a comment below.

photo cred: kurafire

About Jason Sandquist

Jason Sandquist is the Founder and CEO of Loop Commercial Advisors, LLC. A boutique commercial real estate firm serving Minneapolis & St. Paul commercial real estate market, as well as surrounding areas . You can also read Inside the Property Lines, a weblog delivering creative thoughts. He works with landlords and owners with leasing assignments and disposition of properties, as well as start-ups and businesses helping them find space and create strategic real estate decisions. He also helps investors with disposition and acquisition of commercial investment properties.

You can follow Jason on Twitter, Facebook and LinkedIn, as well as Google+

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