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What Most Businesses Get Wrong About Leasing Office Space

Lemar Serkmen 5 min read
209

Leasing an office should be a straightforward business decision: find the right location, sign a lease, move in, get to work. Yet in practice, many companies end up with space that’s too big, too rigid, too expensive to run, or quietly misaligned with how their teams actually operate.

The biggest mistakes aren’t usually about negotiating hard enough on rent. They’re about treating the office like a static asset instead of an operating system for people, culture, and productivity. If you’re planning a move—or reconsidering your current footprint—here’s what businesses commonly get wrong, and how to think more clearly about getting it right.

Table of Contents

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  • Mistake #1: Designing for headcount instead of behavior
    • How do people actually use the office?
  • Mistake #2: Focusing on rent and ignoring total occupancy cost
    • Look beyond the headline number
  • Mistake #3: Treating flexibility as a perk rather than risk management
    • The smartest leases are built for change
  • Mistake #4: Underestimating the friction of the move itself
    • Plan for the operational reality, not the ideal timeline
  • Mistake #5: Getting the space right but the location logic wrong
    • Optimise for access, not image
  • Mistake #6: Not pressure-testing the building’s constraints
    • Key constraints to uncover early
  • Mistake #7: Treating the office as a real estate decision instead of a talent decision
    • A good office reduces “work” around work
  • A more useful way to think about leasing

Mistake #1: Designing for headcount instead of behavior

A classic error is leasing based on a simple metric: employees × desk ratio. That approach assumes everyone works the same way, at the same time, in the same place. For most teams, that hasn’t been true for years.

A better starting point is behavior:

How do people actually use the office?

Some roles need quiet focus. Others run on collaboration. Many employees want a predictable anchor day (or two) rather than permanent attendance. Your space should reflect that reality:

  • How many people are in on peak days, not average days?
  • Do teams need project rooms or client-facing meeting space more than desks?
  • Are phone calls frequent enough to require dedicated booths?
  • Do you need storage, labs, secure rooms, or equipment zones?

When businesses ignore these questions, they end up paying for rows of underused desks while fighting over the few meeting rooms that exist. The lease becomes a fixed cost that actively works against performance.

Mistake #2: Focusing on rent and ignoring total occupancy cost

Rent is only one line item. The more expensive surprises tend to come from everything attached to the space—especially in the first 12 months.

Look beyond the headline number

Depending on the property and the deal structure, your true cost may include service charges, insurance, utilities, business rates, repairs, security, cleaning, waste disposal, dilapidations, and fit-out amortisation. Even “minor” items add up quickly when multiplied by months and square footage.

This is where many finance teams get caught: they compare rent per square foot across options, but fail to compare apples-to-apples occupancy cost. Two spaces with the same rent can land very differently on the P&L once you account for operational overhead and the cost of making the space usable.

Mistake #3: Treating flexibility as a perk rather than risk management

The market has changed. Headcount shifts faster. Project-based hiring is common. Hybrid patterns evolve. And teams can outgrow (or underuse) space within a year.

Businesses often say they want flexibility, but then sign terms that assume stability.

The smartest leases are built for change

Flexibility isn’t just about short terms. It can also mean:

  • expansion rights or adjacent swing space
  • sensible break clauses
  • clear caps on certain pass-through costs
  • a fit-out approach that can adapt without major rework

If you’re exploring options for leasing dedicated office space, it’s worth thinking about flexibility in practical terms: how easily can the space support a different team size, a different collaboration rhythm, or a different client meeting profile without forcing a disruptive (and expensive) move?

That’s not “nice to have.” It’s a hedge against uncertainty.

Mistake #4: Underestimating the friction of the move itself

Even well-run relocations create drag. People lose time. IT gets stretched. Decision-making slows while the organisation adapts. The move becomes a hidden tax on momentum.

Plan for the operational reality, not the ideal timeline

Common pain points include lead times for connectivity, furniture procurement delays, landlord approvals, and the classic underestimation of fit-out complexity. Then there’s the human side: change management, commute impacts, and team norms.

If you want a move to succeed, define success in advance. Is it better collaboration? Faster onboarding? Stronger client experience? Improved retention? Those outcomes require more than a signed lease—they require a plan for how the office will actually be used on day one.

Mistake #5: Getting the space right but the location logic wrong

“Location” is usually treated as a branding decision: prestigious postcode, great building, impressive lobby. But the most effective location strategy is less glamorous and more practical.

Optimise for access, not image

Ask:

  • Where do people commute from now?
  • What’s the real door-to-door time on peak days?
  • Is there a meaningful difference between “close to the station” and “two transfers plus a 12-minute walk”?
  • How easy is it for clients to visit without friction?

For hybrid teams, the office competes with home. If the commute feels like a penalty, attendance will drop and your expensive space will sit empty. Great offices don’t “mandate” culture—they make it easy to show up.

Mistake #6: Not pressure-testing the building’s constraints

Many companies tour an office and fall in love with the look—only to discover limitations once they’re committed.

Key constraints to uncover early

Here are a few questions worth asking (and getting written answers to) before you move too far into negotiations:

  • What are the permitted hours of access, and are there costs for out-of-hours use?
  • Are there restrictions on alterations, signage, or meeting room builds?
  • What’s the HVAC capability, and can it handle your density?
  • How reliable is the lift and loading access for move-in?
  • What’s the acoustic situation—especially in open-plan layouts?

That last point is huge. Noise is one of the top drivers of office dissatisfaction, and it’s rarely obvious during a quiet mid-morning tour.

Mistake #7: Treating the office as a real estate decision instead of a talent decision

This is the subtle one, and it’s increasingly important. Your office is part of your talent proposition—whether you intend it to be or not.

A good office reduces “work” around work

When the space supports focus, collaboration, and comfort, people spend less energy fighting the environment. That shows up as better meetings, smoother onboarding, and stronger cross-team relationships.

It’s also why amenities matter—but not in the superficial sense. Natural light, decent acoustics, usable meeting rooms, reliable Wi‑Fi, and ergonomic furniture beat flashy design features every time.

A more useful way to think about leasing

Instead of asking, “What’s the best deal we can get?” try asking, “What’s the best operating environment we can sustain?”

A well-leased office is:

  • sized for peak behavior, not theoretical capacity
  • costed for reality, not just rent
  • flexible enough to absorb change
  • located to reduce friction
  • designed to support how your team actually works

Get those right, and the office stops being a fixed cost you tolerate—and becomes an asset that quietly compounds value every week you occupy it.

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