Offices for Law Firms

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What type of Office is a good solution for Law Firms?

Law firms over the years use traditional offices.  However, moving forward these companies are looking at adopting new workspace layouts for offices. Balancing the needs of employees is important at different stages of their careers. Because there is a shift in thinking and a new approach to space for multiple generations requires creative solutions. Law firms today employ law firm grads to experienced attorneys.

New employees from the universities and mid level lawyers have their own special needs. Senior attorneys have their own needs as well.

 

When determining how your new office should be laid out, it’s important to keep your business’s objectives in mind. This is particularly true in law offices, where the nature of the work can often breed stress and chaos if not managed correctly. Here are some tips and ideas to consider for a contemporary and efficient layout for law offices:

1. Consider Uniform Offices

Law offices seem to lag behind other corporate office spaces with regard to design planning. Firms traditionally have stayed away from an open office model.  Because there is a sense that the private nature of the business warrants individual spaces. Office size can be related to stress. Avoiding jealous partners, most firms choose to have similar office layouts.

When determining how your new office should be laid out, it’s important to keep your business’s objectives in mind. This is particularly true in law offices, where the nature of the work can often breed stress and chaos if not managed correctly. Here are some tips and ideas to consider for a contemporary and efficient layout for a small law office: 

2. Using Glass Panels

Building in glass walls or windows can allow more openness into an office layout. A goal for most law firms to have enough office space to attract good talent. Image has become primary and size is taking a seat second to image. Average office areas for experienced attorneys is slightly over 200SF per person. New associates can expect to have closer to 150 square feet. A small firm may elect to use glass panels to open up the old look of traditional office areas. Ambiance does affect emotions and can create a more positive atmosphere.

3. Multipurpose Workspace

Working on designing multipurpose spaces. This accommodates both staff and attorneys at the same time. There is always a trade-off,  what are you willing to give up ? Would you still want a built in library? Libraries have been a historical default for most law practices.  Are you able to use a digital solution instead? Instead of a library, some firms may opt to utilize a multi-purpose conference room instead. Multi-purpose conference rooms can have multiple digital solutions from conference calling, video feeds  and multiple ethernet connections for laptops. Conference rooms should always have very comfortable office furniture as well.

Shire Commercial has helped clients find suitable office solutions since 2004. We also provide recommendations for space planners, although most of the time the landlord’s team has planners they like to use. For your next Law office, contact Shire Commercial!

Gross and Net Leases

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Gross and Net Leases for Office Space

No matter which type of business is reflected, the commercial real estate lease is a binding agreement created to defined the terms of occupancy for a tenant. Bottom line, most commercial real estate leases whether they are gross or net leases are drafted to offload as much exposure from the landlord onto the tenant as much as possible. It is for that reason that a tenant should understand that searching and negotiating a lease thru a brokerage like Shire Commercial, is not the whole enchilada.  A seasoned broker will offer you as a Client more services that just finding you a space, anybody can do that.  On top of lease reviews, a good broker who represents your interests will point out potential issues in a lease and recommend that you consult a legal authority for more detailed review.

Gross vs Net Leases Commercial Real Estate Broker in Austin

Roughly speaking, there are 2 main types of leases for office space in the Austin area, they are gross and net leases. While both may represent some risks for tenants, the gross lease offers the biggest chance for the lease language to hide some pitfalls . Why? This is because Net leases are written to have the tenant responsible for pay for property expenses beyond rent  to include taxes, insurance and maintenance , almost as if you as the tenant own the property.  A Gross lease on the other hand detail out the tenant expense beyond rent in details that need some attention right away. These attentions to detail include: units of measurement being used and calendar years being referenced within a lease.  Having a firm grasp of the details within a Gross lease versus a Net lease is important for a tenant to understand.

Austin Office Expenses

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Austin Office Expenses

Tenants will pay a portion of the additional costs (office expenses) a landlord incurs in operating the building they take occupancy in. How much of that increase is the responsibility of each specific tenant and how that additional office expense cost is calculated are two separate equations. First, let’s touch on the two generally accepted types of “Additional Rent” from expenses and how that works.

Base Year Expenses and Expense Stop

Are all additional rents calculating the same way? No, some landlords use a BASE YEAR EXPENSE method. Other landlords use an EXPENSE STOP. While both address the same expenses that the tenant is responsible for these methods differ.

Base YearAustin, TX Offices for lease

Part of your rent in year one, let’s say $18.00 PSF per year. This goes towards the landlord’s debt service and profit. The remainder goes towards operating the building. In a Base Year scenario, let’s say $10 goes towards debt service and profit and $8.00 towards NNN expenses. NNN expenses or are expenses to run and operate the property. If  a tenant’s lease calls for a base year, $8.00 is set as your foundation amount and your lease will state what calendar year is the base year expenses . Should the actual expenses increase in the second year to $8.12, you pay not only the contract rental increase, if any, but you also pay $.01 PSF (which is .12 cents /12 Months)  as “Additional Rent”.

“Additional NNN Expenses,” is what you would incur. If the expenses go down, the landlord should transfer the decrease to the tenant. Operating Expenses are budgeted and assessed to the tenant for the calendar year. They are then reconciled at year end. At reconciliation, the expenses may be less (actual vs budget) or higher which should be transferred over to the tenants leasing the property.

Office Expense Stops

An Expense Stop operates in much the same manner. Except, there always seems to be an Except! The landlord simply gives you a number, maybe $8 PSF, and tells you that $8.00 of your rent goes towards building operating expenses and anything above that you pay. Office Expenses will benefit landlords by limiting exposure to expenses being greater than expected during the course of a tenant’s  lease.

In other words, many landlords will incorporate some type of Expense Stop into Full Service leases. This is because it protects the owner’s operating income. For instance, when the property’s expenses increase over the life of a tenant’s lease term, the landlord is then able to bill the tenant for those increases, rather than absorb 100% of the expenses on their own.

 

Office space calculations

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Office Space Calculations

When a business is looking for an office space in Austin, there are several determinations that need to be made. One of the most important ones is  how much office do we really need? When leasing space in Austin it is important that your broker like Shire Commercial can detail the basic square footage and layout considerations for your new office. The following is a good guideline on how office space calculations work and the approximate square footage for each office space that should be considered when making your office space calculations.

First let’s start with executive office space in Austin , this would include a partner’s office , or standard office space. Keep in mind the square footage for each type of office space is an approximation and may change due to an individual’s preferences.

Executive Office 

  • CEO or Directors    300 square feet
  • Partners    225 square feet
  • Standard office  150 square feet
  • Small office   120 square feet

As a tenant looks at the approximate numbers , of course you would take the number of people X each type of office = Total square footage required.

Cubicles

  • Supervisor workstation  100 square feetAustin, TX Aboretum Offices for lease
  • Standard cubicle 48 square feet
  • Small cubicle  25 square feet

 

Conference rooms are usually pretty important to most tenants , here is a run down of the square footage required for conference room areas.

Conference Room Space calculations

  • Board room space 375 square feet
  • Conference room standard  300 square feet
  • Small meeting room   225 square feet

Reception and additional office space areas

  • Large reception areas 500 square feet
  • Small reception area 300 square feet
  • Copy rooms or mail rooms 150 square feet
  • Pantry -break room space 300 square feet
  • Files – storage   375 square feet

There are always greys when it comes to figuring square footage for office space in Austin, however this is a good start. Shire Commercial specializes in helping tenants find, negotiate, strategize and close on leases for office property in the Austin area.