Business Premises: The Complete Guide for Entrepreneurs

More than square metres

Let’s be honest: for most entrepreneurs, commercial property is not a sexy topic. It is something that needs to be sorted out, somewhere between the bookkeeping and the insurance. But do not underestimate the impact. The place where you work influences everything: your team's productivity, the image presented to clients, your monthly costs, even the talent you can attract.

In this guide, I will take you through the considerations involved in choosing the right commercial property. Not as a dry list of points for attention, but as a reflection on what truly matters.

The question of location

Where should you be located? It is a question that is often answered too quickly, based on gut feeling or convenience. But location deserves deeper consideration.

Start with your clients. Where are they located? Do they come to you, or do you go to them? If clients visit your office, you want to be accessible and presentable. If you travel to clients, proximity to motorways or public transport might be more important.

Next, think about your employees. Where do they live? How do they travel? In a tight labour market, your office location can make the difference between securing that one top candidate or not. A poorly accessible location costs you not just travel time, but also talent.

And do not forget the surroundings. Are there facilities for lunch, a gym, a small park for a quick walk? These things seem trivial, but they help determine whether people actually enjoy coming to the office.

The bill

Let’s talk about money. For many companies, property costs are the second or third largest expense, after personnel. And it is more than just the rent.

The base rent is merely the tip of the iceberg. You have to add service charges – cleaning, security, maintenance of communal areas. Municipal taxes such as OZB (property tax) and sewage charges. Energy costs, which have risen significantly in recent years. And often parking costs, which can add up significantly in certain areas.

Add everything together before you decide. A building that costs €80 per square metre can easily end up at €120 or more all-in. That 50 per cent difference matters for your business case.

Renting or buying: the strategic trade-off

The eternal question: do you rent your business premises, or do you buy them?

Renting is the choice for flexibility. You do not tie up capital that you might be better off investing in your business. You can move relatively easily if you grow, shrink, or simply head in a different direction. And the major maintenance risks lie with the landlord.

Buying is the choice for security and wealth creation. You build equity with every repayment. You are not at the mercy of a landlord's whims. And in the long term, your occupancy costs may turn out lower than equivalent rent.

My rule of thumb: if your company is less than five years old or in a phase of rapid change, rent. The flexibility is worth it. Only when you have a stable, mature company with a long-term vision does buying become interesting.

Determining space

How many square metres do you need? It is a question that is harder to answer than you might think.

For office work, one often calculates with 10 to 15 square metres per workstation. But in a post-corona era, with hybrid working as the norm, that has changed. If your employees are in the office three days a week on average, you need fewer workstations than employees. You do, however, need more meeting space and informal gathering spots.

For industrial or commercial space, it depends entirely on your activities. How much storage space do you need? Which machines are there? How much space does your production process require? This is bespoke work, which cannot be expressed in a simple formula.

And think about growth. Signing a five-year contract for a space that fits perfectly now is asking for trouble if your company grows. Better to have something slightly too large than too cramped, or ensure you have options to expand.

Building in flexibility

The future is uncertain, as recent years have well and truly proven. How do you build flexibility into your property?

Shorter contracts offer the option to evaluate and adjust. But take note: landlords often factor that flexibility into a higher rent. It is a trade-off.

Break options – the right to exit the contract prematurely – are valuable but not always available. Negotiate for them.

Subletting possibilities give you the room to temporarily rent out surplus square metres to third parties. Do check whether your landlord permits this.

And think about the layout of the space itself. A flexible floor plan that can be easily adapted is often more valuable in the long run than a sophisticated but rigid layout.

Sustainability as a factor

Finally, a word on sustainability. Not because it is trendy, but because it is relevant to your wallet and your appeal.

Energy-efficient buildings save you money – month after month, year after year. That LED lighting, that good insulation, that efficient climate control system – it all adds up.

But there is more. Increasing numbers of employees, especially younger generations, value working for a company that takes sustainability seriously. An office with solar panels on the roof might not make the difference for your clients, but it certainly makes a difference for the talent you want to attract.

Making the choice

Good commercial property requires a well-considered choice. Take your time, weigh all the factors, and do not be seduced by the very first option that comes along. The space where you will spend your working days for the coming years deserves that attention.

Read more about bedrijfsruimte or contact us for guidance in your search.