This is a How-To article specifically designed to help commercial tenants and investors learn how to evaluate office space for lease. In today’s dynamic real estate landscape, understanding how to evaluate office space for lease is essential to secure the right property, optimize ROI, and adapt to shifting workforce needs.
Understand Your Space Requirements
Before beginning any search, define exactly what your business requires. Office space varies greatly in layout, amenities, and infrastructure.
Think about your team size, the need for collaborative or private areas, and any special tech needs, such as fiber connectivity. For hybrid models, smaller footprints with shared flexibility areas may be optimal.
Don’t forget projected growth. Overcommitting can waste money, while underestimating can hinder operations.
Evaluate Cost Beyond Base Rent
Lease evaluations must go beyond monthly base rent. Additional occupancy costs can significantly change your real cost of the space.
- Triple net (NNN) charges, covering taxes, insurance, and maintenance
- Operating expenses like utilities, parking fees, and janitorial services
- Tenant improvement (TI) allowances, which affect upfront customization costs
For example, a Class A office in downtown Dallas may advertise $32 PSF, but real occupancy costs after NNN charges exceed $40 PSF, according to JLL research.
Assess Building Amenities and Location
Select buildings with amenities that support your operations and vibe with company culture. Also, consider transit, walkability, and neighborhood development.
Key factors include:
- Fitness centers, conference space, and on-site dining
- Access to public transportation and parking availability
- Proximity to talent pools and client networks
For instance, CBRE’s U.S. Office Occupier Sentiment Survey reveals 87% of firms now prioritize amenities tied to employee experience.
Review Lease Terms Carefully
Lease terms vary, and small clauses can impact your flexibility or financial exposure.
Key lease terms to review:
- Lease duration and renewal options
- Subleasing ability or early exit clauses
- Escalation clauses for rent increases
Always review terms alongside your legal or broker team. Flexible lease structures are becoming more common, as also discussed in our recent article about negotiating shorter lease terms.
Real-World Example: Tech Startup Chooses Midtown Flex Space
One real-world example is FuseOps, a 40-person tech startup in Austin. Initially targeting a large traditional lease, the company reevaluated after demand shifts due to hybrid work. After consulting their CRE advisor, they chose a 6,000-square-foot flexible lease in a mid-rise building providing shared amenities, rooftop collaboration areas, and options to expand within the building.
The decision lowered their effective lease cost by 22% and improved employee retention, aligning with their agile scaling strategy.
According to recent CBRE data, flight-to-quality continues to drive tenant behavior, with highest demand concentrated in properties offering superior ESG features and amenities.
Conclusion: Office Leasing Decisions Built on Data & Strategy
Choosing the right office space to lease now requires sharp planning and data-driven decision-making. Factors like total cost, adaptability, and employee experience are more vital than simply price per square foot.
Whether you’re a first-time tenant or seasoned investor, mastering how to evaluate office space for lease ensures you’re ready to navigate 2024’s evolving CRE environment with confidence.
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Image Generation Prompt: A modern corporate team tours a premium office space for lease in a Class A downtown building with natural lighting, shared amenities, and skyline views, clearly depicting a decision-making process.
