When We Tell Clients "Don't Sign Anything Yet"

The 47 Seater That Started with 15

A SaaS company approached us needing office space for 15 people. They had just closed a funding round and were scaling their sales team. They found a managed office space in Koramangala — 47 seats, ₹4.7 lakhs per month, two-year lock-in.

The space was excellent. Location worked. Facilities were good. The provider offered to "reserve" the extra 32 seats at no cost for future growth. The founder was ready to sign.

We told him not to.

Why We Pushed Back

The math didn't work. The company had 15 people and planned to hire 10 more in the next six months — 25 total. Taking 47 seats meant paying for 22 empty desks for at least six months. At ₹10,000 per seat, that's ₹2.2 lakhs per month on unused space, totaling ₹13.2 lakhs over six months.

The founder's counterargument: "We'll grow into it. Better to have the space now than scramble later."

Reasonable logic. But it assumed growth would happen on schedule. We suggested a different approach: start with 25 seats now, negotiate expansion rights, and scale incrementally.

What a Traditional Broker Would Have Done

A transactional broker would have encouraged signing the 47-seater immediately because larger spaces generate higher commissions. Whether those 22 extra seats sit empty or not isn't their problem.

The "Wait Six Months" Recommendation

We told the founder to delay the decision by six months. His current space was tight but workable, giving him a natural exit point. We advised him to validate his hiring plan over the next few months.

He waited. Four months later, hiring had progressed slower than projected. He took a 25-seater in HSR at ₹2.5 lakhs per month instead of the 47-seater at ₹4.7 lakhs.

Savings: ₹26.4 lakhs annually.

Staggered Billing: How It Works

Some managed office providers offer staggered billing. You take a larger space but pay for it in phases as you occupy it.

Example: You take 50 seats but start paying for 20. Over 10 months, you gradually step up to the full amount. This aligns cost with actual occupancy. We negotiate this when clients have clear but gradual growth timelines.

The Client Who Thought He Was Ready

A fintech startup with 30 employees wanted to move within the month. We suggested running an internal poll on how many people actually planned to come in daily.

Results: 12 wanted to be in daily, 10 hybrid, and 8 fully remote. Actual daily occupancy was 16 seats — not 40. Taking 40 seats didn't make sense. He took a 20-seater with expansion rights instead.

Growth Buffer vs Overcommitment

There's a difference between planning for growth and overcommitting to it. A growth buffer is reasonable. Overcommitting is speculation.

Most founders overestimate hiring speed. Our job is to inject realism into that assumption before it becomes a costly mistake.

When Patience Beats Speed

Real estate decisions feel urgent. But office space inventory isn't scarce. If you miss one space, three similar ones will be available next month.

The cost of overcommitting is paying ₹2 to ₹5 lakhs per month for space you aren't using. Patience usually wins.

The Lease Structure Conversation

When clients do commit, we focus heavily on lease flexibility:

• Lock-in period: Shorter is better.
• Expansion rights: Ability to add seats without breaking the lease.
• Downsizing flexibility: Ability to reduce seats if growth stalls.
• Exit penalties: Knowing exit costs upfront before signing.

These clauses matter more than the per-seat rate. We saw companies stuck in rigid leases during COVID burn crores on unused space. Flexibility is not optional — it's essential.

How We Frame the Conversation

When we tell a client "Don't sign yet," we explain the risks and offer alternatives. The decision is always theirs. Our job is to ensure they're making it with clear information about the downside.

When Speed Does Matter

There are times when moving quickly is the right call — a lease expiring, a rare perfect-fit space, rapid onboarding requirements. But even then, we focus on getting lease flexibility written in before signing.

The Long-Term Relationship Test

We measure success by whether clients thank us three years later. Sometimes the best advice we can give is simply: wait.