What is the best type of office for a scaling business?

Growth in your business is exciting, but as you onboard staff and sign up new clients, you’re likely to stretch the limits of your existing office. How do you ensure your next space accommodates and supports future expansion? 

Things to consider when searching for your next space as a growing business

• Flexibility: Look for contracts of three years or less, or tenancies with break clauses that allow you to exit early. Some leases also have expansion clauses, giving you first right of refusal when additional square footage becomes available in the building, or subletting rights, allowing you to find a new tenant if you outgrow the space.
• Costs: Don’t spend lavishly on fitting out a bespoke space if you’re anticipating rapid growth. Look instead for a space that’s already furnished and IT-equipped, such as a serviced or managed office.
• Location: Is it accessible and attractive for both new hires and visiting clients? Are there co-working spaces or serviced offices available nearby that could accommodate some staff if you outgrow the space?
• Branding: While serviced offices are a good solution for emerging businesses, you’ll eventually want your name and logo on the wall as you establish yourself in the market.

Startups

An early-stage startup transitioning from a co-working space or incubator may want to consider a serviced office. These are fully furnished spaces available on short-term, often 12-month leases, with minimal upfront costs.

With a serviced office, you won’t need to invest time or money in fitting out the space, or handling day-to-day operations, such as utilities, cleaning, and receptionist services, and can focus instead on your core business.

But be aware that if the company only has a few years of history, landlords may request an upfront deposit.

Scale-ups

With your business model now established, you’ll want a space you can customise, while still retaining the flexibility for growth. Scale-ups are well suited to managed offices, the middle ground between serviced and leased spaces, or pre-fitted leased spaces.

Managed offices offer many of the amenities of serviced spaces, including the outsourcing of repairs, cleaning, and other day-to-day management, but with more customisable. Businesses will usually have their own floor and some input on the layout and furnishings. 

By this stage of your growth, you should have an idea of how an office space can serve your business. Maybe you want comfortably furnished breakout rooms to encourage staff collaboration or other amenities that can help attract new talent and impress clients. You can request some of these modifications from the manager.

Managed offices also feature your branding, reinforcing your identity to staff and clients. They’re taken out on longer leases (two to three years is common), enabling your company to put roots down in an area.

Mature businesses

Once your business is established, with a sizeable share of your market and consistent revenue, you can invest in a high-quality Category A space on a longer, five- to ten-year lease. 

With stable cash flow and a firm idea of your needs, you can truly personalise the space. To retain flexibility to support future growth, you may want to use modular layouts, with open-plan spaces and demountable walls. You can also negotiate with the landlord to make the lease work for you, including with expansion and break clauses.

Businesses have many options for office space that can support and not constrain their growth. A tenant representative from Metric will consider all these options, from serviced spaces to leased offices, and guide you to the right one, as we’ve done recently with rapidly growing firms Synthesia, Gridserve, Tangle Teezer, and Global Loan Agency Services.