Most businesses choose office space based on three things: location, rent, and square footage. Those factors obviously matter, but they’re just the surface level of what actually affects operations. The building itself, how it’s maintained, what systems it has, and how it meets current regulations can make the difference between a space that supports business growth and one that creates constant problems.
This becomes clear about six months into a lease when issues start showing up. The heating doesn’t work properly. The insurance company asks questions about fire safety documentation that the landlord can’t answer. Staff complain about air quality. What looked fine during a 20-minute viewing turns out to have problems that affect everything from productivity to legal compliance.
The Insurance Conversation That Changes Everything
Here’s what happens during the insurance process for a new office location. The broker asks for building details, and suddenly there are questions about fire safety systems, when they were last inspected, whether certifications are current, and what documentation exists. If the building doesn’t have proper records, or if systems don’t meet current standards, insurance either becomes expensive or difficult to get at all.
This isn’t a minor cost difference. Buildings with incomplete fire safety documentation or outdated systems can see insurance premiums that are 30-40% higher than comparable spaces with everything in order. For a small business, that difference might be several thousand pounds a year, money that wasn’t budgeted because nobody thought to ask about building certifications during the viewing.
The real problem comes when insurance providers refuse coverage entirely until specific upgrades are made. If the building lacks adequate smoke vents in stairwells or common areas, or if emergency systems haven’t been tested regularly, insurers treat it as unacceptable risk. Businesses then face a choice: find another location, pay for upgrades themselves (which may not even be allowed under the lease), or operate without proper coverage.
What Employees Actually Notice About Buildings
Staff don’t typically comment on office space unless something’s wrong. But when things are wrong, it affects morale and productivity in ways that are hard to quantify but definitely real. Poor ventilation leads to complaints about stuffiness and headaches. Inadequate heating or cooling creates comfort issues that distract from work. Confusing building layouts make people feel uneasy about what would happen in an emergency.
The ventilation issue in particular has become much more prominent since 2020. Employees are more aware of air quality now, and they ask questions about it. Buildings with poor air circulation or old ventilation systems create concerns that affect how people feel about coming into the office. This matters when businesses are trying to maintain hybrid working policies and want staff to actually use the office space they’re paying for.
Emergency procedures are another factor that employees notice, even if they don’t say anything directly. Buildings where escape routes are clear, well-lit, and don’t involve going through confusing corridors or locked doors make people feel more secure. Spaces where the emergency exits are unclear or seem poorly maintained create background anxiety that affects the workplace atmosphere.
The Compliance Issues That Appear Later
Most businesses aren’t experts in building regulations, which is reasonable. The problem is that ignorance doesn’t provide protection when compliance issues emerge. Health and safety responsibilities fall partly on employers, even when they’re leasing space. If the building doesn’t meet current standards and something goes wrong, the business operating from that location can face questions about why they didn’t identify the problems.
This becomes particularly relevant during inspections or if there’s ever an incident. Fire service inspections can identify issues with building safety systems, and businesses may be required to limit occupancy or change operations until problems are fixed. If the landlord is slow to respond or disputes responsibility, the business bears the operational impact even if they’re not legally responsible for the repairs.
Due diligence before signing a lease should include checking building certifications, asking about recent inspections, and understanding what maintenance is scheduled versus what gets done reactively. Buildings where systems are tested and maintained on regular schedules are fundamentally different from those where things only get fixed when they break. The difference might not be visible during a viewing, but it shows up in operational disruption over time.
Hidden Costs That Aren’t in the Rent
Service charges on commercial leases often include building maintenance, but the quality of that maintenance varies enormously. Some buildings have professional management that keeps systems current and addresses problems before they become urgent. Others have minimal management where everything is reactive and tenants end up dealing with regular disruptions.
The service charge itself might look reasonable, but what matters is what it actually covers and how effectively the building is managed. Buildings with deferred maintenance often have service charges that rise sharply when major issues finally have to be addressed. A roof that should have been replaced years ago eventually becomes an emergency repair that all tenants share the cost of through increased charges.
Energy costs are another factor that businesses often underestimate. Older buildings with poor insulation and inefficient heating systems can have utility costs that are double what newer spaces require. This matters more as energy prices have increased, and it’s difficult to predict or budget for if the building’s energy efficiency isn’t assessed before signing the lease.
What Good Building Management Actually Looks Like
The difference between well-managed and poorly-managed commercial buildings becomes obvious when something goes wrong. In well-managed spaces, problems get addressed quickly, communication is clear, and there’s a history of regular maintenance that prevents most issues from becoming emergencies. In poorly-managed buildings, everything is a crisis, responses are slow, and tenants never quite know who’s responsible for what.
Good management shows up in documentation. Buildings should have current certificates for all safety systems, records of regular inspections and maintenance, and clear schedules for when systems are tested. When businesses ask to see this documentation before signing a lease, good landlords can provide it immediately. Landlords who can’t produce documentation, or who are vague about when systems were last serviced, are showing how the building is actually run.
The responsiveness to tenant concerns is another indicator. During lease negotiations or initial viewings, asking about a hypothetical maintenance issue and seeing how quickly and clearly the landlord or management company responds gives insight into how problems will actually be handled. Buildings where management is professional and organized are worth paying slightly more for because they create fewer operational headaches over time.
Location Factors Beyond the Postcode
The physical location matters for obvious reasons related to client access and staff commutes, but there are other location factors that affect business operations. Buildings in areas with good emergency service response times provide better actual safety than those in locations where response could be delayed. Access for deliveries and maintenance vehicles matters for day-to-day operations.
The surrounding area’s development plans can also affect a location’s viability. Buildings in areas scheduled for major construction or infrastructure work might face disruptions that make operating difficult. Conversely, locations in improving areas might see property values and rental markets strengthen, which affects renewal negotiations down the line.
Making Choices That Support Operations
Choosing office space based primarily on rent per square foot is understandable when budgets are tight, but it often creates more expensive problems later. Buildings with higher rent but better systems, clearer documentation, and professional management typically cost less overall when insurance, utilities, and operational disruption are factored in.
The key is asking questions before signing anything. Request building certifications and maintenance records. Talk to existing tenants about their experience with management responsiveness. Check insurance costs for the specific building rather than assuming they’ll be standard. Understand what’s included in service charges and what additional costs might appear.
Office space is more than just a location to work from. It’s infrastructure that either supports business operations or creates constant friction. Taking time to assess buildings properly, beyond the obvious factors of location and cost, prevents problems that are expensive and disruptive to fix later. The right space might cost more upfront, but it pays back in reduced hassle, lower insurance, better staff satisfaction, and fewer unpleasant surprises over the life of the lease.
