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How to Determine the Amount of Space Your Business Needs


How to Determine the Amount of Space Your Business NeedsFinding out how much space your business needs is a complex and difficult task and you will probably never come up with an exact figure. Nonetheless, you need to get very close, especially since your real estate agent will ask for your requirements in terms of square feet. This will give him something to work with and help him discover the number of properties on the market that are in the ball-park. Below we look at some tips to help you decide. But first, let’s take the average office space requirements for employees into consideration:

• President – 400 square feet

• Vice President – 200 square feet

• Managers – 150 square feet

• General employees – 125 square feet

• Temporary employees – 100 square feet

Number of Employees

The above figures are only useful when you consider the number of employees you have in your firm. Is it possible for some of your staff to work from home? How many employees do you intend to have in 2 years time? What are your company’s projections for the next 24 months?


Determine the maximum amount your business can afford to pay for a property each month. If you need to place a security deposit in the first month, find out if your cash reserves can take such a hit straight away. You will also need to draw up a list of office equipment to be installed. Finally, look over your accounts to see how much money you can afford to spend on more space if your business grows.


You need to consider the amount of parking space available for your staff and customers (if applicable). Determine how many employees take public transport to work and implement a car pooling system if possible. If your employees are used to free parking and are forced to pay in the new location, give them lots of advance notice before a mutiny takes place!


Modern day businesses tend to veer towards an open space with a lower amount of enclosed offices and greater density of employees per square foot. The square footage mentioned above is just a guide and is likely to be much smaller in an increasing number of organizations. There are a host of websites dedicated to creating the ideal office layout, so use the tools at your disposal to conduct thorough research. If you are confused by this process, save yourself time and energy by hiring a space planning consultant.


Most commercial property leases ensure you have to remain in your existing location for at least 2 years if not more. In order to accommodate future growth, it is wise to add 20% to the total square footage you initially need. The cost of leasing this extra space will be well worth it when you compare it to the expense of moving or ending a lease early.

Determining the amount of office space you need is an essential element of purchasing or leasing a commercial property. Either choice is an expensive endeavor so it has to be done right the first time around.

How to Determine the Amount of Space Your Business Needs
General Contributor
Janice is a writer from Chicago, IL. She created the "simple living as told by me" newsletter with more than 12,000 subscribers about Living Better and is a founder of Seekyt.

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