When is the right time to start looking at new office space?

Upcoming lease expiries, ramped up hiring, new initiatives, merger and acquisition activity or plans to expand service offerings can all put a countdown timer on your current workplace. So how do you know when it's the right time to start exploring new office space options?

Before jumping straight into a property search, it's wise to first consider whether an office refurbishment to your current space could be a better initial move. Cosmetic enhancements like fresh paint, modern lighting fixtures, new flooring and office furniture can quickly give tired work areas a fresh facelift.

Reconfiguring existing floor plans by removing or rearranging walls, adding new collaborative zones and opening up floor space can optimise workflow and functionality. Expanding into vacant adjacent spaces in the same building may also be possible.

Upgrading ageing technology like AV systems, networks, phone systems and connectivity can modernise and future-proof older properties. Amenities like electronic security access, wellness rooms, onsite gyms, cafes and outdoor spaces also help create a more desirable, updated workplace.

However, if your location itself is problematic due to space restrictions or lack of transportation access, restaurants, green space or other amenities, a simple refurbishment can only go so far. Likewise, if major structural changes are needed like adding new windows, elevators or ramps for accessibility, the costs can quickly exceed those of an office relocation. Moving into a new purpose-built space designed specifically for your needs is often a smarter long-term solution.

If you've weighed options and decided additional space is required, when should you start looking? Generally, it's wise to begin your search 18 months before your current lease expires. This provides ample time to thoroughly explore all available options without rushed decision making. It also gives you greater leverage to negotiate the most favourable terms.

For purchased office space, it's important to start looking even earlier - up to 2 years out or more. Purchasing property involves lengthier timelines to identify and secure financing, conduct due diligence, handle closings and transfer of title.

Some scenarios that frequently signal it's time to start investigating additional square footage include:

Lease expiry

As your current lease approaches expiration, it's a natural time to reassess space requirements. Even if you plan to renew, factoring in growth projections and changes since signing the current lease will determine if amendments or new premises are needed.

Accelerated business growth

Quickly expanding headcount, operations and inventory can rapidly squeeze existing capacity. Even fully utilising every inch of current real estate, there are often physical limits before productivity and morale decline.

Overcrowding issues

Lack of private offices, meeting rooms, quiet spaces and elbow room are clues that overcrowding issues are developing. Employees constantly struggling to find desks or places to collaborate freely signals a need for more room.

New business initiatives

Major product launches, entering fresh markets or geographies, opening satellite offices all drive headcount growth and space needs. Mergers and acquisitions also prompt reevaluation of space.

Long-term expansion plans

Strategic plans to significantly broaden service offerings, add new business groups or departments over the next few years indicates more real estate will be required sooner than later.

To summarise, keep these tips in mind when gauging the ideal timeframe to start your office space search:

• For leased space, begin 18 months before your current lease expiration. Allow more time if purchasing property.
• Carefully factor in projected hiring and business growth plans over the next 3-5 years at a minimum.
• Begin 24 months out or sooner if rapid growth, major initiatives like M&A or global expansions are on the horizon.
• Enable sufficient lead time for an unhurried, strategic search and decision process.
• Starting too late compresses timelines and severely restricts location and space options.
• For startups, consider longer initial lease terms or purchasing to avoid repeatedly moving.
• Don't wait until current space is completely maxed out before taking action.

Finding new office space is a process that can't be done overnight. Align your search timing with lease expiration dates whenever possible. For purchasing property, initiate the process even earlier based on longer timeframes involved. Build in adequate capacity for near-term growth so your new space can fulfil business needs for years to come. By starting early and following a methodical, strategic approach you’ll end up with the ideal work environment without unnecessary hassles or delays.

At Office Principles, our workspace consultants can help you identify the right time to start your office space search and walk you through the entire process from start to finish.