Starting a Financial Advisor Business: The Role Real Estate Plays

In making the decision to go independent, financial advisors frequently overlook the process of finding the right office space, and instead focus on other things like marketing, technology, and client retention and acquisition.

The proverbial question, “Will my clients follow me?” is what’s typically top of mind. But once financial advisors start thinking about finding office space, it’s easy to get overwhelmed. And for good reason, finding the right space is crucial for long-term business success. The right office space, even if it’s a home office, can influence things like client trust and business growth. As advisors go through the process, there are several considerations to keep in mind.

Four Tips When Looking for Office Space

1. Ensure it reflects your brand and professional image

Your office space should be a physical representation of your professional image. It's not just a place to work; it's an extension of your brand that can help build credibility with your clients. Clients will form perceptions about you based off your location, your workspace set up, and your overall presentation — even if you work virtually and especially if you work with high-net-worth clients.

It’s also an opportunity to tell your brand story. If certain colors or even features are part of that story, your office can reflect that. “We worked with one advisor who felt having a waterfall in her office was important. For her, it was a statement that really represented her brand. My team worked to make that happen. Understanding that she had the vision, it was for us to empower it and help advisors bring it to life,” said Manny Laws, VP Startup Solutions, LPL Financial.

2. Negotiate a flexible and favorable lease

When negotiating office space, one of the first things to think about is the length of time you plan to be in the space. “If you’re looking at a short-term lease within a two-three-year time frame, you want to get the landlord to invest as much of their capital into the space,” said Manny Laws. These are turnkey items like providing a fresh coat of paint, replacing the carpet, and making the suite move-in ready. On the other hand, if you’re interested in signing for the longer term, negotiating a lower rent takes on importance. In this scenario, it probably makes sense to put up capital so that you can get a lower rent.

Consider the flexibility of the lease terms, including the ability to expand or reduce space as your business grows or changes. For example, you might negotiate a lease that includes a first right of refusal for other space in the building. This can provide you with the flexibility you need to grow without the immediate burden of a larger space. Should your business grow and you move to the larger space in the same building, it positions you for a more seamless move, where you don't have to change addresses.

3. Design the layout around clients and employees

If you prefer formal meetings, you might need a larger office with a desk and a screen. For informal meetings, a seating area with couches might be more appropriate. Consider the overall client experience, including amenities like a coffee station, and ensure the office supports client events like workshops or seminars and provides a professional background for virtual meetings.

A well-designed layout can also help attract talent. As you're designing the space, think also about your employees. It's not only about how you collaborate with them during work hours, but also about providing other amenities, like a break room for example.

4. Use your office space to engage and attract clients

Your office space can be a powerful tool for engaging and attracting clients and prospects. Consider creating unique and memorable experiences, such as hosting events like statement shredding events or, parties centered around a sports event (e.g., March Madness parties). These activities provide a fun and engaging environment for clients and give you opportunities to connect with them in a more relaxed setting. “We worked with one business who created a designated area to film podcasts in their office – complete with a backdrop and all. You can't beat the convenience, plus they don’t have to rent out another space. This is a great example of using real estate as a tool,” said Kimberly Sanders.

By keeping these tips in mind, you can find the perfect office space that aligns with your business goals and client expectations. Remember, the right office space is not just a place to work; it's a reflection of your brand and a key component of your business's success. Whether you choose an in-office, remote, or hybrid model, the key is to create an environment that supports your professional image and enhances the client and employee experience.

These tips come from a panel discussion hosted by Wealthmanagement.com and led by LPL Financial Strategic Wealth. Learn more about real estate support for Strategic Wealth Advisors.