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Tenant Improvements

Posted by Carlo A on Wednesday, December 2nd, 2020 at 11:01am.

The process of looking for new office space is a long one, but it usually starts with a vital step – identifying an ideal estimate of the total amount of space that is needed by your company. How is this done? If you are representing the tenant’s side, you know that you can do it on your own. However, if you want to avoid the hassle that is often associated with the process, you can also consult with specialists to help you have an estimate of your office space requirements. After all, this is one of the tenant improvements that you are allowed to have.

Dallas office space for lease

Tenant Improvements – What is It?

Tenant improvements are the customization that is done on a specific space in order to make it meet specific needs and requirements. The allowance for tenant improvement refers to the amount of money that the landlord prepares in order to help in defraying the cost of the build-up.

An office space usually comes in shell condition. This only means that even though some of the common areas in a building have already been completed, the spacious interiors are usually unfinished and bare. This makes sense on the part of the developer. After all, the developer does not have an idea of whether or not a tenant would need an entire space or just a part of it.

Unless you are taking into consideration renting an office space in a new area, you can expect that most of the space available will have been built out with the previous occupant’s tenant improvements. If you are willing to be more flexible, this could provide a good opportunity for you.

How Much Space Would You Need?

In order to have an idea as to the amount of space that you would need for every employee, there is a need to imagine the future office space. Would you want to maximize the area that every employee gets, or would you want to have as many of them working in the space?

Are you planning to create individual spaces, workstations, or employees in cubes? Would the employees be sharing desks or have their own? Are all employees working full-time? Or will there be part-time employees reporting to the office as well?

After having such a picture in your mind, you can start converting that idea into actual numbers. In order to get the estimate of the amount of space that you would need for your office, you can multiply the headcount of your employees by the square feet per employee you think would fit the density needs of your office.

Space Divisions – How to Determine

When taking into consideration the square feet per head, the common area square foot is also included. This means that in an average-sized office, not all square feet will be occupied by employees. A percentage will also be used as break areas, conference rooms, as well as communal areas. For companies with their own private offices, employees are expected to receive a bigger share of the overall space compared with those that work with workstations or cubes.

Having a proactive design for your common area is vital because it plays a role in the flow of traffic within an office. On top of that, it can also have an impact on the sense of unity and teamwork in an office, even altering employee productivity when planned appropriately. The common areas have to offer opportunities for employees to socialize.

Planning for Future Expansions

When considering the amount of space that you need, it is very important to plan for expansion and growth. If you fail to do this, you may just end up finding yourself out of the much-needed space after new employees are hired. Moving to a different location for your office can turn out to be more expensive than you would ever imagine.

At the same time, the cost involved in terminating your lease earlier than what is stipulated in the contract, along with the cost of searching for and moving offices is not that pricey. For this, it may be helpful to add between 10% and 20% to the overall square footage calculated in order to anticipate the accommodation of growth in the future. Anticipating expected growth will allow you to expand your business even further without experiencing those expensive interruptions.

What’s Next?

Now that you have already imagined the new layout for your office space, you are now ready to get an estimate of the amount of space that you would require. You may use online office space calculators, or hire the assistance of professionals who can provide you the information that you need. Regardless of your option, this process is part of the overall tenant improvement specifications that can help you as a tenant.

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