As a charity or non-profit you’re always working on ways to reduce costs and enhance your impact and support your Mission. However, unless you’re one the few who own their offices or are fortunate enough to have free or donated office space, your rent / lease costs are significant line item on your expense budget. So how can you best control the lease costs, especially when you usually only deal with leases and negotiations once every many years?

Here are three key things to consider as you consider any office space strategies.

Grow (or shrink) with your organization

Be in the right amount of space. Organizations renting too much space are wasting funds and exposed to unnecessary risks. However, a too-small space is ill-advised too. Staff morale and productivity suffers. Your real estate agent should provide design resources to help determine the best size range, or should be able to recommend someone who can help you accurately assess your needs.

Know your options 

You need to know what your options are and understand the market.  Your real estate agent should be an expert, and show you every appropriate listing. Not exploring options and simply renewing your existing space may seem simple and inexpensive, but if you don’t do your homework you’re actually helping your landlord – they’ll know you haven’t explored options. Conversely, don’t waste your time touring the wrong spaces. Your real estate agent should take the time to understand your needs.

Make sure your agent works for YOU! 

Find a real estate agent who works for only you and not your landlord. Most brokers are contracted by landlords to keep their buildings full. Which buildings do you think they’ll push? And how hard do you think they’ll push their Landlord on your behalf? Ask any prospective real estate partner if their brokerage takes landlord listings, and understand the implications if they do.

You are doing important work in the world and managing your space is something that is easy to set aside. Every few years, it is worthwhile to take time to ask some tough questions about whether your existing space is currently meeting your needs and ensure that you look into your options. Your donors will be glad you did!

Jeffrey Good, VP Cresa Toronto, Real Estate, Charity and Non-Profit Practice Lead

Jeff Good has worked for over a decade in the charitable sector, following 20 years of success in the for-profit world. He has been a fundraiser and led capital campaigns, has been President and CEO for a large charity, and has spent the last many years using this background to help organizations with all aspects of their real estate and office space needs.