Leasing Office Space – Part 4 of 23 (Selecting a Location)
Selecting a Location
Office space location issues can include proximity to existing and potential employees, clients, vendors, and various third parties. For companies with less than 100 employees, the primary criteria for selecting a location is typically proximity to the chief executive officer’s residence. As a company grows, office relocations also consider where both existing and prospective employees live. If a company moves 20 or 30 miles from its current location within a metropolitan area, some employees may decide to the additional commute is not worthwhile. If the company moves to another metropolitan area, it will likely lose many of the lower to middle level employees and a portion of the senior management.
Employee Home Locations
The home location for prospective employees must also be considered. If a company has 10 employees, it probably works fine to have an office on the fringe of the metropolitan area. However, a company with hundreds or thousands of employees must consider drawing its staff from a larger geographic base than is reachable from the fringe of the metropolitan area. For example, if your company is on the southern fringe of a large metropolitan area, prospective employees on the northern fringe would be reluctant to make the commute.
Many tenant rep brokers have a tool to evaluate the centric location of all employees. The home address of all employees is entered into a database. The computer algorithm calculates the centric location.
Appearance and Location Appropriate for Clients
For some companies, office space must be selected based on a location convenient to clients and an appearance that is appropriate for clients. For many businesses, clients rarely visit the office. If they do need to visit the office, they do not expect it to be convenient and luxurious. In this situation, most companies elect to choose office space which is low to moderate in price. Conversely, clients of some firms expect the location to be convenient and the office space to be impressive. Large law firms and trust companies fit this category.
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