Failure to understand all the office leasing costs
There are more costs involved in leasing office space than just the rent. Many of these costs are quoted in different fashions so it can all get quite complicated when comparing alternatives. It becomes difficult to compare proposals on an apple-to-apples basis. In fact, it can even become difficult for an inexperienced tenant representative to decipher the various costs involved in comparing different office space alternatives.
First of all, there are different lease types including full service, gross, semi-gross, net, triple net and other variations which specify which, if any, expenses the tenant pays.
How about the base year for operating expense pass throughs? This is the base year amount of operating expenses that your additional costs are based on. If you don’t pay attention or don’t know you could find yourself liable to pay for increases over a base year that could be 5 year old and cost you several dollars per square foot right off the bat. What if the building is only 25% occupied? Who will pay for the operating expenses on the vacant space? What is the norm for your market?
If your lease is a triple net lease are the expenses in line with what could be considered normal in your market or are they somehow higher due to extra landlord fees?
There are also different levels of tenant improvements which can be included in the lease. Landlords will very often offer a per square foot allowance for tenant improvements. Is this on the net rentable space or usable area or is it from shell condition or below the ceiling?
Another big one could be the load factor in calculating useable vs. rentable space measurement. It is the percentage of space on a floor that is not usable plus a pro-rata share of the building common area, expressed as a percent of Usable Area. It is also known as the Common Area Factor or the Loss Factor. A Typical load factor range is 10% to 18%. Some inefficient buildings can have load factors as high as 25% or more. Once again, what is the norm in your market?
The answers to these questions can make a significant difference in the overall cost of renting office space. Which is why making mistake number one in this series can be so damaging. Understanding all of the leasing costs and being able to communicate that information to you is an important part of what a tenant representative does. It can save you thousands of dollars in avoiding mistakes. Tenant representatives provide many more services to their clients and there is no cost to you in engaging their services. It costs you nothing, but can save you thousands.
When moving your business to a new location, it is very important to include and inform your telecom provider early in the process. Your provider needs time to research your new address for the proper facilities; order and have the service operational before you move in.
Remember that it can take anywhere from two to six weeks to complete the order. We recomend that you have an overlap of service at both locations for at least a week in case your new location needs additional or unexpected work.
National ComTel has the ability to assist with the new location research and confirmation of proper facilities, order the equipment, coordinate the move, and work with any required vendors. All this so that you have peace of mind and know that your telecommunication needs are met.
Businesses should remember that in most cases National ComTel can consolidate your local, long distance, internet and other telecom requirements quickly and at a very good price.
National ComTel offers tailor-made, business telecommunications solutions with more options and choices at the lowest possible rates and the highest quality customer service in the industry. Since we work with the major telecom providers, we have the ability to choose the best services at the best rates for the customer’s specific location – with one consolidated monthly bill and one number to call for 24/7 customer service.
Interim dividend up 6% to 0.85p per share (H1 2009: 0.8p)
Commenting on today's announcement Mark Dixon, Chief Executive Officer of Regus plc, said:
"Despite the challenging trading environment I am pleased that we continue to generate cash, deliver cost savings and open new centres on attractive deals. While the market remains difficult to predict, we remain committed to our strategy of restoring our margins by both driving up our revenues and progressively reducing cost while continuing to maximise growth opportunities as changes in how and where we work evolve."
The good news for Regus is that they have cash, £224.2m, to continue their expansion plans which are to "open a centre per day over the remainder of the year." According tot he report Regus is focused on reducing risk through variable rent arrangements that combine operational flexibility for both landlords and for Regus - minimizing risks inherent with longer, more conventional leases.
The really bad news is that their stock prices have plummeted:
The bottom line is that Regus is suffering along with the rest of the worldwide commercial real estate market.
Healthcare is a huge industry today and every type of healthcare provider requires medical office space in which to perform their practice. Whether the medical office space provides clinical services, diagnostic services, laboratory services or another niche of healthcare services, the needs of these providers differ greatly from the traditional office rental lease template. Here are a few of the most important issues and concerns to be aware of securing a medical office space lease that will help meet the unique needs of healthcare providers.
Convenience: All healthcare providers need to be in locations convenient to their patients. Competition can be fierce among healthcare providers and unless the office space is convenient, patients will simply go elsewhere. However, this is also true of traditional retail and office space. There is a larger concern with healthcare facilities; they need to have convenient access for handicapped visitors and those who are seriously ill. They need parking that is convenient to the entrance, wheelchair ramps available, and in some cases, it must be easy for patients on crutches to access.
Biohazards: No matter what type of healthcare practitioner is requesting your assistance in securing office space, there will be concerns about biohazards. There will likely be human biohazardous wastes collected and disposed of by the office space. Diagnostic equipment such as CT scanners or X-ray machines pose other hazards. Some landlords may be hesitant to consider the modifications required for such equipment. Special shielding, unique to the medical field, may have to be installed. In most cases, these situations will violate the standard lease language and need to be modified.
Tenant Finish: Medical facilities have especially unique requirements when it comes to remodeling the inside of office space. Traditionally, owners prefer to have any tenant finish performed by their own contractors, usually those that have performed similar remodeling for the in the past. Healthcare providers often require specialists to properly and safely remodel the leased office space. Often, the landlord will need to understand that the tenant finish will have to be done by contractors with whom they are not familiar. The property owner should retain the right to inspect work in progress and verify that mechanics liens are not attached on the property.
ADA: Medical facilities often require access for patients with special needs such as wheelchairs, walkers, crutches, and canes. They are, therefore, more likely than average to be scrutinized for Americans with Disabilities Act compliance. While the use may drive the need for additional ADA compliance, they will also want to avoid lease terms that cause them to pay the costs incurred for ensuring the building meets the strict compliance required. In most cases, the tenant will want to negotiate lease language that places this burden on the landlord.
Use: The use of traditional office space is outlined in the lease and is quite limited when viewed in terms of medical office space use. Wording which bars hazardous materials and biomedical wastes must be changed to prevent lease violations. The traditional boilerplate lease simply won’t work when dealing with the special needs of healthcare providers.
These are only a few of the areas of leasing medical office space that should be addressed by healthcare providers. Carefully read all lease language to ensure a healthcare provider can operate their practice within the language which is negotiated with the landlord.
No. Not the NY subway, but the sandwich shop. Talk about great branding and a captive audience. Subway sandwiches has opened a shop at the top of One World Trade Center for the construction workers. As the building rises, so will Subway. See it on YouTube.
Failure to understand all the office leasing costs
When moving your business to a new location, it is very important to include and inform your telecom provider early in the process. Your provider needs time to research your new address for the proper facilities; order and have the service operational before you move in.
Healthcare is a huge industry today and every type of healthcare provider requires medical office space in which to perform their practice. Whether the medical office space provides clinical services, diagnostic services, laboratory services or another niche of healthcare services, the needs of these providers differ greatly from the traditional office rental lease template. Here are a few of the most important issues and concerns to be aware of securing a medical office space lease that will help meet the unique needs of healthcare providers. 
