Time to rent office space?

Question

Our Business has been growing rapidly as we've employed our capital in the acquisition department. Currently we're at 7 doors and nearing the completion of our first $50/sq ft rehab. We have two new construction projects getting ready to break ground, 2 cash out delayed financing loans in process, and almost at the end of our first debt cycle, getting ready to emerge into the next phase of our growth stage. We've decided to scale back on acquisitions and have started scouting out talent to add to our team to be better prepared for what's to come.

While interviewing a potential new company Integrator yesterday, he asked if we had an office space. I told him we did not but the question has had me wondering if the time has come, or is near. We are getting ready to start hiring team members as our business grows and I was wondering if anyone could offer some insight on when the time is to get office space and what possible benefits and downsides deciding to do so has.

Jake Baker · Answer

@Tony Pellettieri

I have come across this question recently as well. We have had more people on our team, but it is just 2 of us at this time and have considered looking into office space. We both have a wework membership (coworking space) that allows us to meet in an office setting at any time. This is a good middle ground for us right now.

However, there are some great deals out there in the commercial space. Have you thought about buying? Perhaps renting out parts of it? aka Office Hacking haha

John O'Leary · Answer

Consider beginning with a Regus office to manage initial costs, and as your business expands, explore other office space options. The commercial real estate market, particularly for office space, is hurting, allowing for negotiation including incentives like free rent, contingent upon the supply and demand dynamics of the market.