Workplace Strategy Before You Sign the Lease

What is a workplace strategy and why does it come first?

A workplace strategy links your business goals to the way you use space. It looks at how teams collaborate, concentrate, meet clients and learn from each other, then translates those needs into a floor plan, a location and a lease.

Most tenants do this in the wrong order. They hear that a lease expiry is approaching, start inspecting buildings and then work out what they need. In my view, that sequence hands the landlord control of the timeline and the options.

When the strategy comes first, the lease becomes a tool that serves the plan. You know the size you need, the features that matter and the flexibility worth paying for. That knowledge strengthens every conversation with agents, landlords and designers.

How much office space do we need?

This is the question I hear most often, and headcount on its own gives a poor answer. A better answer comes from combining several sources of information.

• Attendance data: badge swipes, desk bookings and sensor readings show how many people are in the office on each day.
• Peak and average use: the busiest day shapes the design, while the average shapes the efficiency.
• Team patterns: some teams anchor to certain days, while others vary week to week.
• Work settings: how many people need focus space, collaboration space, meeting rooms and quiet areas.
• Growth and change: expected hiring, restructures and shifts in how teams operate over the lease term.

Gather at least several weeks of data, preferably across different periods of the year, and test it with conversations. Staff often describe needs that the data misses, such as a shortage of quiet rooms or too few spaces for client meetings.

Office space planning then turns the findings into a ratio of desks to people, a mix of settings and a total area. A test fit on the actual floor plate confirms what works. Expect the answer to differ by team, and avoid forcing one ratio across the whole business.

Hybrid work office design: what changes?

Hybrid work office design shifts the balance of the floor. Fewer people sit at assigned desks every day, and more of the space supports collaboration, meetings, learning and social connection.

Several design themes tend to appear:

• Meeting rooms in a range of sizes, including more small rooms for video calls with remote colleagues.
• Good acoustics, because open floors with many calls can become noisy.
• A reliable booking system for desks and rooms, with clear etiquette.
• Storage and lockers for people who move between settings.
• Technology that makes hybrid meetings feel equal for those in the room and those online.

Hybrid design still needs a strong sense of place. People attend the office when it offers something home rarely matches, such as face to face collaboration, mentoring, equipment and a welcoming environment. Space that delivers on those points earns its rent.

Technology deserves early attention. A hybrid meeting room with poor audio frustrates everyone, and fixing it later costs more than designing it well from the start.

Where should we locate, and how does it shape workplace strategy?

Location is part of workplace strategy because it influences attraction, retention and attendance. Sydney offers several distinct precincts, from the CBD and North Sydney to Parramatta, Macquarie Park, the inner west and the southern gateway areas.

Ask where your people live and how they travel. A site with strong train, metro, light rail or ferry access widens the pool of staff who find the commute reasonable. Proximity to clients, suppliers and partners also counts for some businesses.

Consider the amenity around the building too. Cafes, gyms, childcare, end of trip facilities and green space influence how staff feel about coming in. A decentralised approach, with a smaller main office and flexible space in other areas, suits some organisations.

Test the options with a short list of buildings against the same criteria. Weigh cost, access, building quality, sustainability credentials and the expected hybrid pattern. Sustainability ratings such as NABERS and Green Star can inform the comparison, and they also affect running costs.

How do you keep lease terms flexible?

The strategy should shape the lease, rather than the other way round. If your needs may change, build flexibility into the terms from the start.

Options to discuss with your adviser and lawyer include:

• A shorter initial term with options to extend.
• Expansion and contraction rights on the floor or in the building.
• A right to sublease or assign space, subject to landlord consent.
• A surrender or early termination option, which may carry a fee.
• Staged commitment, where you take part of the space at the start and more later.

Flexibility has a price, therefore weigh it against the risk of being stuck in space that has stopped fitting. Landlords also differ in how they respond, and market conditions play a part. General information only applies here, and a lawyer should review the specific wording.

Timing matters. Many leases carry notice dates that fall well before expiry, and a considered workplace strategy takes months. Starting early keeps your options open, gives you time to compare buildings and strengthens your position when you negotiate.

Final thoughts

Workplace strategy gives you a clear view of how your people work before you commit to a lease. With attendance data, staff input and a sensible view of flexibility, you can size the space with confidence and negotiate from a position of strength.

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