8 Factors to consider for an ideal office location

Shreeja CS
Oct 27
5 min read

The location of a business can prove to be an important asset that over time will bring prosperity and success to a company.

Business leaders understand the importance of staying connected to the industry and hence, are willing to invest in commercial real estate that facilitates proximity with customers and competitors. It could also help in employee retention and recruitment.

Searching for a commercial area that fits a company’s criteria for an ideal office location can be demanding. Having a checklist can help speed things up and help you land the perfect top location for your office.

Should you rent or buy an office space?

Economic growth has caused a major shift in the way companies view commercial real estate. Owning or leasing a commercial property for an office space is seen as an investment. These available options carry their own set of advantages and disadvantages.

Leasing

By opting for this alternative, companies need to only worry about honoring the lease agreement by adhering to the conditions put forth by the owner of the commercial space. That may include:

The occupiers will have to pay a certain amount, for using the space, which will increase periodically.
Any alterations to the space will have to be notified to the owner.
The occupiers will have to manage their operations within the allocated space.

Buying

While owning a space will provide freedom to the companies, it also means all kinds of maintenance and upkeep will be under their purview. This may require:

All mortgage or loan and tax payments will be paid by the company owning the space including servicing and preliminary expenses.
The company can share the space or building by leasing it out to other businesses. The rent earned from these dealings can be used to maintain cash flow for their organization.
Buying a space signifies that the organization is confident about its stability.

After choosing one of the above options, the following points can be viewed through the perspective of an owner or a lessee,

Cost Estimates

Setting up a new office space requires putting aside a substantial part of funds. This could affect other areas of the business. In such cases, having a budget helps a business organize assets, expenses, and other resources.

Budgeting provides a perspective that helps companies blend their future goals and infrastructural expenses. A feasibility assessment will help balance an organization’s daily operability and eventual expansion while acquiring a suitable office space.

Business Locale

In most cases, location is a reflection of a business’s reputation. When choosing a business location, leaders should zero in on areas that would serve the purpose of their business. An office’s accessibility plays an important role in attracting the right kind of clients and collaborators.

Companies should filter out areas depending on the objectives set for their growth. For example, a co-working space in a centrally situated business area may prove to be cost-efficient for start-ups while a privately owned or leased space in a tech park might be suitable for continuously growing organizations.

Commute-efficient facilities

The working population spends a significant portion of their time commuting to work. The same has been proved through multiple surveys. According to MoveInSync, Indian office-goers spent 7% of their day commuting to work and 41% of the survey participants admitted their dislike for commuting.

Organizations should make efforts to reduce this portion of their time so they can dedicate their energy towards increasing their productivity and contributing to business growth.

This is possible, through careful research of locations and commercial properties that have multiple conveyance options.

Office Expansion

When an organization is looking to establish a new office space, it needs to size up the scalability options that are allowed and available on the premises. In certain commercial areas, there is a fixed system that confines premises occupiers to a limited space ratio. As the employee strength increases, they are either forced to vacate the area or adjust with the available proportions.

The Savills India survey conducted for real estate executives specifies that one of the things, 51% of the participants, prioritized was scalability. Leaders should pursue commercial property dealings that have clear indications of flexibility. This will prepare them for managing expansion or reduction in the future.

Workforce requirements

Each organization has a focus area that would lead them toward better opportunities and growth. They need to be close to resources that will aid them in producing quality products and services. For eg, an automobile manufacturing company needs to be closely situated to vehicle parts dealers, car showrooms, etc.

The employees of an organization should have access to facilities that will provide support to their tasks. Commercial areas with an established base for similar activities, expected by the organization, will be an optimum choice.

Brand Presence

A Brand is a symbol of trust that sets an organization apart from its contemporaries. The locality is also considered a key identifier of an organization along with a logo or a tagline. Well-known companies can indicate their brand presence by creating separate campuses or business parks with their unique trademark. However, growing businesses are yet to set such a precedent and might need a more nuanced approach.

In such cases, Companies should select office spaces in a previously established commercial area with well-known businesses. Such areas or properties cash in on their popularity and connectivity by marking their presence online through digital marketing. Companies situated in these areas can also benefit through such marketing.

Talent Proximity Advantage

Increased awareness has made it easier for candidates to apply for jobs. Besides wanting a well-paying position, they are taking into account additional benefits such as work-life balance, relocation assistance, and reduced commute time. Preferences voiced by these candidates are being seriously considered and implemented by companies.

Due to this, the ideal office location has become one of the key details for organizations to provide a safe and interactive corporate culture. An area with necessary amenities for individual and organizational needs with ample alternatives would be a good start.

Workspace Facilities, dimensions, and Atmosphere

The infrastructure and ambiance of a company’s workplace have physical and psychological effects. The moment a potential client or an employee steps inside an office they notice the structure and the comfort it exudes. An office environment should be a visualization of the values and the vision the company stands for.

Engaging an external consultant to join forces with the internal team of experts will help create a hospitable and creative office space with cool aesthetics. It will also help the organization evolve and adapt to newer technologies and infrastructural facilities that signal versatility.

Conclusion

Commercial areas have the resources to provide exceptional services that elevate the importance of office location and it enables organizations to showcase better performance. An ideal office locality with well-rounded amenities makes it possible to fulfill professional and personal commitments.

A shift in the attitude toward businesses has led to leaders conducting explorations, particularly with regard to commercial areas. The previously outlined points act as guiding principles and prepare them for future eventualities.

Our team of real estate experts is best equipped to help you select ideal commercial areas for your organization.