Office Space: Real-Estate Realities for Solo and Small Firms
Many new lawyers who strike out on their own never think about the real-estate elements of their practice. Trained as lawyers, they suddenly find themselves as business tenants, property managers and maintenance experts all rolled into one. Leasing and managing office space is a major challenge, says Mannie Zeller, vicepresident at J. J. Barnicke Ltd. in Toronto and himself a former space-leasing lawyer.
Before making any officespace commitments, Zeller says, consider carefully the matter of location. If you’re servicing a certain community, position yourself nearby. If your clients require public transit, give them easy access. If they drive, make sure to find a location with ample and affordable parking.
Next, do your homework. If you’re making a five- or ten-year commitment to a space, says Zeller, “look very carefully at a building’s reputation, landlord management and custodial care.” Think about security arrangements, too, not to mention safety measures and track records.
Also, remember your obligation to preserve solicitor-client confidentiality. “Your clients won’t feel comfortable talking about confidential matters if they can hear what’s going on in the hall or the office next door,” Zeller notes.
Think about the physical dimension, too. Some buildings have deeper floor plates than others, which means the distance between the core of the building (where the elevators and washrooms are) and its edge (where the windows are) is more extensive. Buildings with shallow floor plates offer a larger proportion of windowed offices and access to ambient light.
Because lawyers typically pay for office space by the square foot, they should employ the services of a space planner. Major landlords might include the space planner’s services in the cost of the lease; otherwise, such professionals charge between eight and 12 cents a square foot.
Regarding payment, lawyers will have an advantage when it comes to reading that fine print closely. Review the rent categories, both “net” and “additional,” to ensure that all the charges are relevant. Reserve the right to review and challenge the landlord’s actual costs. And don’t forget to include the tenant’s improvement allowance — typically between $25 and $30 a square foot.
Finally, there are smaller details to consider, such as securing a slot on the directory for each lawyer, the building’s storage capacity (for closed files), and the desirability of other tenants as neighbours.
— Laura Pratt
Adapted from National magazine, October/November 2005.
