Need Office Space Post-Pandemic?
Posted On: 14/07/21 - 0

Do you still need office space post-pandemic? Remote work and zoom meetings have given us new ways to communicate and get work done. As a business owner, you may be asking yourself what does commercial space look like now? Should I even have it? If many of your employees are continuing to work virtually for a large part of the work week, it may be time to think through how much space you actually need. It’s also important to consider the cost implications of keeping your existing office space, as well as what your tax bill might look like should you transition your employees to remote work.

Here are a few things to keep in mind as you evaluate your commercial office space:

Determine Who Is Using Your Space And Whether You Still Need It Post Pandemic

It will be important to gage the interests and capabilities of your workforce before moving forward. Are there certain employees that can transition to full-time remote opportunities? Do you have employees who rarely need to participate in meetings or have you seen their productivity increase while working away from the office? Employees who routinely interact with clients might need to be in the office more than others.

It is very important to access who needs to be in the office, when they need to be in the office and why they need to be there is a crucial first step in assessing your commercial office space needs. Keeping your clients in mind is important as well. Many have enjoyed the flexibility that zoom meetings offers them (especially during the height of Covid cases). We have experienced with some of our client’s there always will be those who prefer an in-person face to face meeting.

Still Need Office Space Post Pandemic? – think about renegotiating Your Lease

After determining who needs to be in the office and how you’re going to use the space, it makes sense to take a closer look at the costs associated with your lease. It might be time to renegotiate your existing agreement. Most landlords recognize that keeping a tenant at a lower rate is better than having a space sit vacant.

In many of the commercial districts in Edmonton, there are many vacant spaces which in my personal opinion will provide you with leverage to negotiate better terms. If you are dealing with a reasonable landlord, I am sure they would be open to negotiate. One way to potentially lower your rent is by offering to sign a lease extension in exchange for the reduction. That would assure the building’s owner that you’re committed to the space. It’s also possible your landlord owns other commercial properties which might be a better fit for you from both a cost and space perspective.

Re-Purposing Vacant Space Into Revenue Generation Opportunities

A business owner in our business zone has re-purposed commercial space that otherwise would have been space that was costing them rental fees without generating income. This may be an excellent time to explore marketing new complimentary products/services to your pre-existing offerings. This could be expanded in the space that has been recently created by less employees. Adjusting workspace to accommodate business expansion and income generating opportunities is a great idea if you have recent freed up space. You have the space, use it to your advantage.

Examine The Costs/Benefits Of Transitioning Your Workforce

You’ll also have some financial decisions to make with your employees who can work remotely. It’s good to meet with your workers and consider sharing some of the work-from-home cost burden. In fact, you can provide them with tax-free employee benefits that reimburse legitimate job-related expenses. Those would include setting up a home office. Your business can deduct these reimbursements. In order to qualify, your employee has to use a portion of his or her home exclusively for work. The home office must be put in place for the convenience of your business rather than your employee. Items such as a computer, printer, internet service and additional office equipment also are eligible for full reimbursement. Employees can be reimbursed for the home office percentage of rent, utilities and other home maintenance costs.

For more advice on how to pivot your business wisely and cost efficiently that generates tax protected revenue, contact Cheryl at Padgett Business Services N.W. 780-482-7297.

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297

cheryl@padgettnw.com