As Elvis Costello once said, ‘Every day I write the book.’ As an entrepreneur you make decisions every day that write the story of your business. Sometimes the decisions are large and profound. Other times the decisions are simply things you decided not to do. But in aggregate, your decisions tell the tale of your business. It is up to you to make the story worth sharing.
Desperately Seeking Office Space
In the summer of 2017 I could see a solid runway in front of my baby advertising agency, The Weaponry. (To be clear, the agency was a baby. We didn’t advertise the benefits of being or having a baby.) Having recently relocated from Atlanta to Milwaukee for family reasons, I began looking for a legit office space to serve as our world headquarters. Or in Amazonian terms, HQ1.
Let it grow, let it grow, let it grow.
Like a scary rash, The Weaponry was growing at a rapid, yet unpredictable rate. So I began looking for a 1-year lease, which would provide short-term stability, yet long-term flexibility. I captured the entire search in a 3-part series, which I share again here, with hopes that it gives anyone with aspirations of having their own office a vision for how the process works.
The Looking For Office Mini-Series:
- Looking for office space: A startup story.
- Looking For Office Space Part 2: The Messy Middle.
- Looking for Office Space Part 3: We Have An Office!
Our Current Space
We signed a 12-month lease on 1000 square feet of office space in the fall of 2017. (You can get a good look at our office here.) We worked hard to make the space look and feel like home. But the year flew by, and our initial lease expired on December 31st, 2018. We grew, as expected. But several of our new employees were in Columbus and Atlanta. So we still weren’t in trouble with the fire marshal in Milwaukee.
We really liked our location. So to prepare for the end of our first lease we looked at every available office space in our 5-story building. I appreciated the way our property owners worked with us as we developed a plan for our next chapter. I think they appreciated the fact that when they came to talk to us we didn’t look like we were about to pull a Baltimore Colts on them and skip town in the middle of the night.
What We Are Doing Now.
After much deliberation, this is what we signed into our new contract on January 2nd:
- We are staying in our current space, for now. We are not yet feeling stretched to capacity. Plus, we love our current space, and have made it our home.
- We signed a 13-month extension. Our landlord asked for at least a 1-year commitment. And although we looked at 1, 3 and 5-year options, a 1-year lease was the smallest financial commitment I could make. And given how much growth I see on our horizon, it is hard to tell what our needs will be like more than a year down the road. Why 13 months? A 12-month lease would have us moving between Christmas and New Year’s Eve. And I want to be home sipping eggnog.
- Our rent went up 2.5%. That’s all I have to say about that.
- We added a right of first refusal on another space. We saw 3 other offices in our building that were of considerable interest to us. But rather than moving now, we decided to put first dibs on a great space overlooking the Milwaukee River (like our current space) on the 5th floor. #Penthouse #NotTheNaughtyMagazine #IsThatEvenStillAThing
The space on the 5th floor would double our square footage, adding several more individual offices, a bigger conference room, a storage room, reception desk and a break room with water, a fridge, and dishwasher. The 5th floor location would also make me feel less guilty about taking the elevator than I do when I ride it to the 2nd floor.
We have decided to be conservative in our commitments. Yet we have a nice option if we outgrow our space in the next 13 months. Which is highly likely. I have discovered that as an entrepreneur you need to know when to be conservative and when to take risks. We think we got this one right. But I’d like to know what you think of our decision. I’m always up for some well-considered counsel. Leave a message in the comment section and let me know if you would have chosen a different adventure.
4 thoughts on “We have signed a new lease. Here is the scoop.”
You nailed it, Adam. The first right of refusal is the perfect solution. BTW, the 2.5% increase is right in line with the annual CPI increase, so very reasonable. Now you can spend the next 13 months growing your business to the point where you have to keep your existing space and add the new 5th-floor space!
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Thanks Charlie! We’re feeling good about it. And I love the idea of grabbing both spaces!
Moving, relocating and setting up a new house is a huge interruption. Focus on the growth and the year will FLY by, I promise! Smart move…or not move ;). Coming to visit! Cam
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Thanks for the feedback Camela! We’re feeling good about the decision. Especially given the news we are about to announce… And I’m looking forward to your visit! Your shots of the Bradley Center looked great!