Key Steps and Timeline for Leasing Office Space: A Simple Guide

Planning to lease office space? Whether you're starting fresh or expanding your business, finding the right office space can feel overwhelming. Here's a straightforward guide to help you navigate the process, with tips to decommission your old space as a final step.

Step 1: Start Early (6–24 Months)

Finding and securing office space takes time. Smaller spaces (e.g., 2,500 sq. ft.) might take 3–6 months, but larger offices requiring custom renovations (e.g., 25,000 sq. ft.) could take 12–24 months or more. Starting early ensures you have options that fit your needs and budget.

Step 2: Assess Your Needs (1–6 Months)

1. Define your requirements:

• How many employees will the space accommodate?
• Do you anticipate growth?
• What layout works best (open plan, private offices, or coworking)?

2. Set a budget:

• Calculate what you can afford, including rent, utilities, and potential construction costs.
• Factor in moving expenses and setup costs (furniture, technology, etc.).

3. Work with a broker:
Tenant-representation brokers specialize in helping you find the best space and negotiate favorable terms.

Step 3: Search for Space (1–6 Months)

Identify potential locations by considering:

• Proximity to clients and employees.
• Access to public transportation and highways.
• Neighborhood amenities and tax implications.

Shortlist a few spaces that meet your needs and budget.

Step 4: Request Proposals and Negotiate (1–3 Months)

Ask landlords for written proposals outlining:

• Rent and lease terms.
• Additional costs (utilities, property taxes, etc.).
• Concessions (free rent, tenant improvement allowances).

Negotiate multiple offers to get the best deal. Once you decide, draft a Letter of Intent (LOI) with agreed terms.

Step 5: Finalize the Lease (1–6 Months)

Hire a real estate attorney to review the lease. This legally binding document should reflect all negotiated terms and protect your interests.

Step 6: Prepare the Space (3–12 Months)

The time needed to prepare your office depends on its condition:

• Move-in ready: Minimal updates like painting may take a few days to a month.
• Partial build-outs: Moderate renovations could take 3–6 months.
• Shell condition: Significant construction might take up to a year.

Work with architects, contractors, and your landlord to manage the process. Many landlords provide a tenant improvement allowance to offset costs.

Step 7: Move In (5–15 Days)

Once construction is complete and the occupancy permit is issued, bring in furniture, set up technology, and move your team into the space.

Step 8: Decommission Your Old Space

Before leaving your current location:

• Review your lease for decommissioning obligations (e.g., repairs, cleaning, or removing alterations).
• Hire professionals for any required work.
• Return the keys to the landlord to officially hand over the space.

Why Start Early and Plan Thoroughly?

Rushing the process can lead to costly mistakes, such as choosing an unsuitable location or accepting unfavorable lease terms. A clear plan ensures your new office supports your business goals while staying within budget.

By following these steps—and addressing decommissioning needs at the end—you’ll smoothly transition into a space that fits your needs. Ready to start your office search? Contact a trusted commercial real estate broker today!