Considering New Office Space – Real Estate and Construction

Where your not-for-profit organization is located and how you
use the space you have can make a significant difference in the
overall success of the organization. This was even more apparent in
the past year where many offices were not utilized at all, yet
lease or mortgage payments were still due.  

Even with the economy bouncing back, having your employees and
volunteers return to previous uses of office space could be a
mistake. For instance, you may be overpaying for the property you
are leasing or there might be a less costly space in a similar
area. The way your space is configured might also no longer be
appropriate if hybrid work arrangements, prompted by the pandemic,
became permanent. Considerations should be taken into account
regarding hybrid arrangements with staff, whether they work
remotely or in person, based on the needs of the organization.

UTILIZING SPACE

Some organizations, including not-for-profit organizations, have
converted staff to full-time remote positions. It became clear over
months of stay-at-home orders that, equipped with reliable Wi-Fi,
quality devices and the necessary software, employees could perform
their jobs without being onsite.

One consideration to be made for organizations that can allow
for remote working positions is a hoteling system. This system
allows employees to share space or check out an office or desk when
they are in the office. It allows the organization to reduce their
total office space as staff will no longer be in the office 100% of
the time.

Another consideration to make is: Where are your programs
operated? Do you need space to run your programs or is this space
located separately from your office? Although administrative staff
may function as effective remotely, programmatic employees are
often essential to be in person and need the appropriate space to
conduct the programs.

MAKING THE TRANSITION

If you are not interested in a complete office space redesign,
you can make other improvements. Many companies are looking to
relocate from a large office to a smaller one or moving from the
city to the suburbs.  

That might not make sense for your not-for-profit organization.
But a move to a more desirable location could be in the cards
— whether that desirability is based on easing employees’
commutes, being closer to your donors or just relocating to a more
attractive building. With high vacancy rates driving down rents,
and the possibility that you may choose to downsize, locations that
were previously unaffordable might now be within reach.

Related Read: Watching Costs Is Always a Smart
Investment

LET’S MAKE A DEAL

Finally, your best opportunity in today’s environment may be
to strike a better deal with your landlord. Several approaches
might work. After you read your lease carefully, find out whether
any of your landlord’s tenants have successfully negotiated
better lease terms. You may also be able to determine your building
occupancy rates to determine your leverage.

If you are in the market for reducing your space or making a
move you may want to consider the following:

• Ask for an amended lease with reduced rent and possibly reduced
  space;
• Extend your lease, but reduce your space;
• Negotiate common area maintenance charges; or
• Sublease some of your space.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.