Office Space

Important Things You Should Know

No. 1 - Process considerations when letting offices

Have you allowed at least 3 – 6 months time period before commencement of lease? Generally, the process to lease an office space is as follows:

1. Define the companies requirements in terms of size, location, budget, preferred type of building, technical requirements and any other specific requirements
2. Select your preferred agent - this would naturally be Ash Brook Commercial Properties!
3. Obtain office space options that match your requirements
4. Short list options
5. Conduct site visits with your agent, so that they can answer any questions on-site
6. Select a preferred office option
7. Meet with Space Planners to conduct a detailed space plan, based on your newly selected office space. This will confirm that you have adequate space for your lease term, and will also give you an indication of any potential over-run costs
8. Complete the Offer to Lease and submit together with original FICA documentation
9. Once the Landlord accepts the Offer, they will draw up a detailed lease agreement for signature
10. Sign the lease and transfer deposit (or submit bank guarantee)
11. Commence beneficial occupation and start fitting out the premises
12. Occupation of premises

No. 2 - Space planning considerations when letting offices

1. How many staff members do you need to accommodate? A good rule of thumb is approximately 15 – 20msq per person, which should accommodate: Permanent staff and/or temporary staff and/or designation of staff
2. What is your projected employee growth rate over the term of the lease? 
3. What is the required configuration of the offices e.g. open plan or cellular offices
4. What is the requirement for the following:
   • Storeroom
   • Boardroom
   • Meeting room
   • Kitchen
   • Reception
   • Server room
   • Number of offices
   • Training rooms
   • Conference rooms

It is always a good idea to get more than one quote from space planners, as they vary substantially between companies

No. 3 - Building considerations when leasing offices

1. Is the main operation of your company compliant with the zoning of the office space?
2. What “Grade” of building do you require? What style of building would you like to occupy?
   
   • 'A' Grade – Generally not older than 10 years old, unless renovated; prime location; high quality finishes; adequate on-site parking; air-conditioning. Commands the highest gross market rental
   • 'B' Grade – Generally 10 to 20 years old, unless renovated; accommodation to modern standards; prime location; air-conditioning; on-site parking. Commands a middle of the range gross market rental
   • 'C' Grade – Generally 20 to 30 years old, unless renovated; in fairly good condition, although finishes are not up to modern standards; good location; may have on-site parking; unlikely to be centrally air-conditioned; commands the lowest gross market rental
3. What type of office park would you like to occupy?
4. Which floor of the office building would you like to occupy?
5. Would you like a view from your offices?
6. What type of image would you like to portray in your offices?
7. Do you require 24 hour security?
8. How many parking bays do you require? Generally office parks have a standard parking ratio of 4 bays per 100m sq. These bays are distributed between open air bays, shaded bays and basement bays

No. 4 - Financial considerations when renting offices

1. What lease length are you intending on entering into? The standard in the industry is either a 3 or 5 year lease
2. What size of office space do you require? Monthly rental is calculated on the gross lettable area of the office (i.e. usable area plus common area)
3. What is your monthly budget? Different suburbs (and different buildings within these suburbs) attract different gross rentals (click Office Space Pricing Guide 2010 to see our downloadable PDF’s for average gross rentals throughout Gauteng)
4. Do you have the required deposit amounts? The property funds within South Africa generally require a minimum deposit of 3 month’s gross rental, or 2 month’s gross rental together with personal surety
5. Have you conducted a space planning exercise, where you have calculated the additional capital amounts required to fit-out your new office space?
6. Have you factored the compounded annual escalation into your budgets / forecasts?
7. Do you have your own furniture? There are purchasing and leasing options available to companies
8. Who is responsible for the operating costs of the building and the office park?
9. Does the gross market rental that you have been quoted, include rates and taxes?

It is worth noting that leasing office space is almost always cheaper than purchasing. Do your homework correctly (with the help of a professional) before making a decision to rent or to purchase.

No. 5 - Geographical considerations when letting offices

1. Which suburb would you like to be located in?
2. How close do you need to be to the main arterials? Do you need easy access to the highways?
3. Where do your employees live?
4. Where are your customers situated? This is more important if you are a client facing company
5. Do you require high visibility on to a main road for branding / marketing purposes
6. Do you need to be in close proximity to transport links e.g. Gautrain, Airport, Train Station, Taxi Rank or BRT

No. 6 - Technical considerations when leasing offices

1. Have you arranged your Telkom line for your new office space?
2. Have you arranged your new Internet facility (ADSL / ISDN / Wi-Fi / VPN)
3. Do you require a back-up generator? Landlords will look at installing a generator into buildings where a number of tenants are willing to contribute on a monthly basis
4. Do you require a separate server room?
5. Do you require a separate security system?

At Ash Brook we have found office space for large multi-nationals as well as smaller enterprises. We guarantee the widest range of office options for you within Gauteng (Johannesburg and Pretoria). Call 0861 6222 62 or fill out our contact form and one of our agents will contact you.