Small Business: Finding the right space

Just like finding the perfect house, finding the right office space for your small business takes careful consideration. After all, outside of your home, it's probably the place you spend the most time in.

Given the high vacancy rates and landlords' willingness to negotiate, it's a good time to be scouting for new digs. But your ability to find the right space in this market requires solid forecasting, savvy skills negotiation and lots of patience, say experts.

"It's important to plan ahead and pick a location that will meet your needs for years to come, because it's expensive to have to make a different choice later on," says Chris Gattis, author of "Business Start-up 101" (Blue Point Publishers; $19.95) and chief strategist of Blue Point Strategies in Huntsville, Ala., a site location specialist.

To optimize your search, figure out what you need and want before hunting for space, suggests Gattis.

"You know certain things you absolutely have to have and certain things that would be nice to have," he notes. "Figure out what they are before you go shopping so you don't fall in love with something and it doesn't really meet your needs."

Also ask yourself what the purpose of the building is -- attracting clients or accommodating employees -- says Selinger. This will help determine whether you need to be in more of a "trophy building" with amenities like a restaurant and gym, or in less costly space, which may have limited or no amenities. Also, consider your location needs, factoring in such elements as the employees' commute or whether you require access to a railroad station or main hub, he says.

Adam Lapitino, regional sales director at PAETEC Communications, a nationwide voice and data service provider, learned this firsthand. He recently moved the company from Woodbury to a larger office space in Melville, where the landlord was willing to negotiate various upgrades including full glass visibility into the conference room and granite at the greeter's desk in the foyer, says Lapitino. He had Selinger show him 21 properties.

"It far exceeded our expectations," he says, adding that during the almost yearlong search he had various suitors trying to lure the company with perks, including one that would have refitted a building gym. The more sound a company is financially, the more landlords are willing to negotiate and compete, says Selinger.

But just as they're assessing you, you should be assessing them. Look for financial red flags, like upkeep on the building. Also, gauge other tenants on the landlord's responsiveness to tenant issues and needs, he notes. And don't just settle.