Featured image: Unsplash – CC0 License
Finding a business premise that works for you can be challenging, whether you’re considering investing in one or operating on a lease. You might need an industrial space, retail units, offices, or hybrid spaces for remote workers. It’s usually a good idea to emphasize quality over quantity when it comes to business spaces. While flexibility and sustainability are important, it’s how a site will perform in the real world that matters for most entrepreneurs.
So, what should you be looking for in a business space?
Flexible lease terms and scalability
The first thing you’ll want to look at is the flexible lease terms. These days, short to medium terms are usually between three and seven years. You can get less than that, but you’ll pay a premium.
Check whether you have expansion or contraction rights on the property. These are vital if you’re entering a volatile business and don’t know when you’ll need upscale or downscale options. Are you allowed to sublet out the units that you rent to other companies? If you’re not, then it’s worth asking why not and if it’s worth using the site at all.
Unless you’re buying outright, avoid 10-year commitments. In 2026, businesses need to retain the ability to adapt and adjust their headcounts.
Location and accessibility
The other key factor is the location and accessibility of the workplace. You need something that offers all stakeholders value, including customers and employees. Think about how close your workplace is to public transport options like bike lanes, buses, and metro services. If workers drive, consider any major highways nearby that can allow them to get into the office faster.
If a site is easy to access and reduces resistance to workers being in the office, then it’s usually worth going ahead. However, if it’s poorly connected and takes a long time to get to, then any employees with a choice would probably prefer to stay at home.
Hybrid ready design
Depending on the type of operations you have, the next step is to explore hybrid-ready designs. You want a mix of:
- Collaborative zones
- Quiet pods
- Hoteling desks
- Multipurpose areas
These are particularly helpful if workers are only in the office for a couple of days a week. You can focus on offering high-quality workstations so that everybody has a space when they come in. Don’t use any open-plan-only options, and also avoid rigid cubicle farms. Both of these approaches were tried in the past but eventually failed. It turns out that workers want flexibility in high-quality environments that enable them to perform different types of work at different times depending on their needs.
High-quality buildings
Image credit: Unsplash – CC0 License
You also want modern, well-maintained buildings with premium finishes. These days, there is a flight to quality as brands are looking for the best possible premises for their operations. This is something that companies in the commercial building industry like SCB Construction Group understand. Buildings that don’t meet quality standards are not being considered.
One reason for this is the sheer competitiveness of the market. While Class A and B+ buildings have been popular for the last few decades, we’re also seeing a rise in interest in trophy class buildings. This is because employees are demanding spaces that are worth commuting to. Otherwise, it makes more sense for them to remain at home.
One of the biggest draws for commuters is having companies that have buildings with catering facilities in them that provide buffets around the day. This allows employees to follow specific diets and get food conveniently without having to cook it themselves.
Entertainment and opportunities to socialize with friends at work is also a reason why these high-quality buildings are being sought after. Companies need spaces that allow people to mingle and have proper conversations. These days, standing by the water cooler and having a chat is not enough.
Technology and infrastructure readiness
Of course, you should also be looking for technology and infrastructure readiness whenever you are scouting for a new commercial building or premises.
Obviously high-speed internet and Wi-Fi is a must. Everyone needs this. However, it’s also essential that it has sufficient power outlets and other facilities like EV charging. Depending on the type of business you run, you may also need AI and IoT compatibility. For example, if you need to put sensors on different parts of a production line, then having the infrastructure in place to facilitate it is helpful. Video conferencing rooms are also useful if you’re growing a business or expanding overseas. You need these to be able to get in touch with other people.
ESG compliance
ESG compliance is another critical element to look for in a building. It needs to be sustainable and have all of the right certifications. For example, it should have energy-efficient lighting systems, such as LEDs. It should also have efficient smart HVAC systems. These improve energy usage and can leave and offer companies a low carbon footprint.
As the world changes, sustainability and ESG compliance is becoming more critical for talent attraction. Companies that don’t offer these services can find themselves being left behind. It’s also important for investor appeal, if you want other people to come in with you and share the cost of construction or acquisition.
Then it helps if proper waste management is in place, and the use of natural materials is in place. Green certifications like BREEAM, LEED, and WELL are also nice to have.
Cost structure and occupancy costs
Image credit: Unsplash – CC0 License
Finally, when considering a new premises, you will want to look at the cost structure and occupancy cost. Compare metrics like full service rent against triple net. Also explore hidden fees that might come back to bite you in the future and any long term escalations that could be built into the contract. If you can approach moving costs holistically, don’t just think about the price of the building or the lease. Also think about fit-out costs and the moving expenses involved. Transferring a company from one location to another is more expensive than a regular home move.
