It's never too early to start thinking about the lease on your association's office space. Whether you have six months, two years, or more time left on your current rental agreement, you should take a moment to consider whether your next lease requires a change of square footage, location, or renegotiated terms.

These days, "well-advised and forward-thinking associations are putting more thought in their leasing arrangements," says James S. Wilson, an attorney with Webster, Chamberlain & Bean, LLP. Since office rent comprises such a large portion of operating expense, savvy association staff and board members are scrutinizing how dollars are spent.

If your association is considering making more efficient use of its space, here are seven questions you need to ask before signing a new lease:

1. Do we have time to conduct a thorough assessment of our office space needs? Generally, the earlier you start the process of renegotiating your lease or searching for new space, the better, Wilson says. "If you get too close to the expiration date, you won't have as much flexibility from a timing perspective or from an availability perspective," he says. To that end, start your analysis one to two years before your lease expires.

The well-advised and forward-thinking associations are putting more thought in their leasing arrangements.—James S. Wilson, Webster, Chamberlain & Bean, LLP

2. Would a smaller footprint fit our needs? Some associations downsize because of technological advances and other factors that reduce the amount of square footage needed. If you're not expecting to expand operations or hire additional staff members in the next few years, ask: Are there areas of the office that could be eliminated? For instance, maybe you could go without a server room, especially if your electronic systems and files are backed up in the cloud.

3. Are all employees making full use of their offices? If some staff members work remotely or travel extensively, they may not need dedicated offices. These spaces could be eliminated and replaced with office hoteling, in which staff use shared desks when they're onsite. Office hoteling can reduce overall workspace and square footage, decreasing rental costs.

4. Should we consider a building that offers shared spaces? Some buildings keep space that all tenants can use on a first-come, first-served basis. Examples include conference rooms, common break rooms, and social areas. Usually, these shared spaces aren't charged directly as part of the association's base rent, Wilson says. Sharing common areas can reduce overall rent and facility expenditures, but it requires some flexibility. "You don't have exclusive rights to these areas, and another tenant could need a conference room at the same time you do," Wilson says.

5. Should we hire a consultant or real estate agent to guide the process? Hiring an expert could offer some advantages. "Engaging a commercial real estate broker who knows the relevant market can help an association evaluate different leasing opportunities on an apples-to-apples basis in terms of economic arrangements and other benefits," says Wilson. Such an expert also may "help an association evaluate its real estate needs into the future, in terms of office space size and other benefits. This could help the association make a more informed choice and, perhaps, get a better economic deal," he says.

6. Will the new rental agreement have the flexibility we need? The term of a typical association rental agreement can run anywhere from 3 to 15 years, Wilson says. Be sure your association is satisfied with the length of the contract, as well as the terms included in the document. "Some associations are looking to have more flexibility in leases and, depending on the circumstances, can negotiate on termination rights or options to expand or contract the space," Wilson says.

7. Are there any additional fees? Be aware of expenses other than base rent that may be included in the lease, such as maintenance fees, upkeep for shared facilities, and utilities. Always ask how utilities are measured—whether individually metered or apportioned by square footage—so you can more accurately budget for monthly expenses.

If you take the time to answer these seven questions, your association could find new ways to make more efficient use of your space. At the same time, you might learn new ways to work, such as sharing workspaces or increased teleworking, that could ultimately reduce your bottom line.