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Entries Tagged as 'Office Space Negotiations'

Office Space Flooring Options When Renting Office Space

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What do you pay attention to when renting an office? Obviously, the size of the space and the available amenities make a big difference in your decision. Yet the ever-changing world of real estate trends notes that flooring is a new consideration for professionals weighing different office space rental options.

The standard institutional carpeting has been found to wear out too quickly and therefore presents with a raggedy appearance in an otherwise attractive space. Other flooring options do not always adjust well to the emerging green cleaning technologies that many office building managers now embrace. In some cases, the heavy use of a floor may have damaged pre-installed stone or concrete significantly.

It is here that the rental of a new office space calls for meticulous attention to detail. While you do not want to inherit the previous occupant’s flooring problems, consider the financial aspect of redoing a floor to match the look and feel of your business. Stepping into a ready-made space is always a plus.

  • Technology trumps expensive flooring choices. The GLA ALA Leadership Exchange Magazine investigated the changing trends in law office design and noted that expensive parquet floors were now taking a backseat to investments in technology. In short, your business’ financial makeup is a major determining factor when it comes to floor choice or replacement.
  • Contemporary looks replace outdated dark wood. Although wood flooring is a highly-desirable option, it has to be the right type of wood. In the past, dark wood paneling and matching floor boards were considered de rigueur for successful estate planning offices. Modern office designs call for lighter colors that also feature a more streamlined look. 
  • Developers eye environmental upgrades. Efficiency is the new buzzword for office builders, the Urban Land Institute reports. Examples include the use of energy-saving products as well as under-floor air systems that greatly improve the air quality in an office.
  • Cork quickly becomes the material of choice. The World Floor Covering Association identifies cork as a material that not only offers a sleek and contemporary look but also cleans up easily. Moreover, it has a strong resistance to mildew and water. When properly maintained and re-waxed every six to 12 months, cork is supremely long-lasting. Wood and stone are more expensive and are quickly falling out of favor due to warping and dirt absorption issues.

OfficeFinder, LLC is committed to helping you find the right office that suits all of your needs. Contact us today to find out how we can help you.

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By: James Osgood

Office Space , Office Space Design , Office Space Negotiations

A Few Things to Consider Before Signing an Agreement for Office Space for Lease

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Renting office space can be exciting and overwhelming all at the same time. In some of those anxious moments, it can easy to get caught up in all the excitement and sign a lease agreement that has unfavorable terms.  Since the success of your business largely depends on the right rental terms, you’ll want to check out a few important details whenever you are considering office space for lease.

The type of lease that’s being offered can make or break your business, as some could result in your paying large additional charges you weren’t prepared for. The common types of commercial leases are:

  • Percentage lease, which involves you paying a base rent in addition to a percentage of your monthly sales (retail leases)
  • Net lease that includes base rent and a nominal charge for taxes and insurance
  • Double net lease that requires you to pay rent in addition to the entire cost of taxes and insurance
  • Triple net lease which mandates that you pay rent, taxes, insurance and maintenance fees
  • Fully serviced lease or gross lease in which the landlord pays for additional expenses and then passes them on as a “load factor and increased from a base year.”

When choosing a fully serviced lease, it’s important to understand what the load factor and base year means. It is essentially a way to calculate the total monthly rent when a tenant has usable square footage in addition to common areas. For example, a business could occupy space in a building where stairways, restrooms and entryways are common space. In this instance, the load factor covers the expense associated with maintaining these areas, spreading them evenly among all who use them. The base year is the year in which you must pay for any excess expenses over the amount for that lease year. You have to be careful that the base year is current or in the future when signing a lease.

Although you may be offered a deal for signing an extended lease, if you’re a startup or growing business, you should be leery about doing so. That’s because you just might find the needs of your business change a great deal over the first couple of years. For this reason, you should consider a short-term lease that’s between one and two years if you are a brand new company.

It’s also a good idea to ask about initial improvement allowances, remodeling or redecorating when signing a lease. Most long term leases will include a tenant improvement allowance. Make sure you know if that is on a rentable or useable square footage bases. It can make a difference of 15% or more. You may choose to build cubicles, add new carpeting or paint the walls once you settle in, so you need to know if this is something that’s allowed. Many times, minor modifications are allowed as long as the structural integrity of the building is not altered in any way.

When it comes to choosing the right office space, the terms of a lease are every bit as important as the location. Your best bet is to have an Office Tenant Representative on your side. There is no additional cost to you, so it is a no lose situation. You will save money and avoid costly mistakes. To find office space with exactly the right terms for you, contact us today.

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By: James Osgood

Office Leasing Tips , Office Relocation , Office Rental , Office Space , Office Space Negotiations , Tenant Representation

What is Most Important to Office Tenants?

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Determining your priorities is a key to finding the right office space for your company. A full needs analysis is critical in the beginning of the process to make sure you are looking for what you need. Abacus Office Finder in the UK has been doing an ongoing survey to determine what matters most when selecting office space for rent. Here is what they came up with:

  • Location 57%
  • Value 25%
  • Image 16%

Based on my 30+ year of experience in the business, it is pretty accurate.

If you want to go into more depth in analyzing your needs, we provide an Office Space Planning Checklist on our site so that you can make sure to consider all the major considerations when starting the process of finding you office space. In addition to the checklist we also offer an Office Space Calculator that allows you to determine the amount of office space you will need. Lastly, but not least, if you are considering an executive suite office rental, we offer an Executive suite vs Conventional Space Comparison Calculator that will reasonably accurately compare the cost of the two office rental alternatives.

All that said, the best way to make sure you get your office needs met is to engage the services of a local office tenant representative, like the ones at OfficeFinder, to make sure you consider all the factors you need to in your market. Every market has slight nuances that need to be considered.

Executive Suite
 vs. Conventional Office

Cost Comparison Calculator - See more at: http://www.officefinder.com/ExecSuite.html#sthash.TLU4UhRW.dpuf
Executive Suite
 vs. Conventional Office

Cost Comparison Calculator - See more at: http://www.officefinder.com/ExecSuite.html#sthash.TLU4UhRW.dpuf

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By: James Osgood

Executive Suites , Office Leasing Tips , Office Rental , Office Space , Office Space Design , Office Space Negotiations

Assigning an Office Space Lease - what you need to know

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One of the office lease clauses tenants should pay attention to is the assignment clause. The basic idea behind the assignment clause to allow the tenant to assign the entire lease to a sub-tenant, the assignee, if need be. Typically, an assignment will require the landlord's approval in writing. The assignee must be qualified and the assignment is made without the release of the assignor’s liability. What this means is that you, the original tenant, will still be financially responsible to pay the rent in the event the assignee fails to make payments. This can add quite a liability on your financial statement.

There are ways to try to get around this. The first and foremost important requirement is that the assignee's financial statement is comparable or better to that of the original tenant’s. If that is the case very often you can negotiate with the landlord to a release after a period of time in which the assignee has paid rent on time and that the assignee is never in default of the lease during that time period. Another way to achieve a release is through a buyout option. If the subtenant is creditworthy you could offer the landlord a sum of money to release you from any future obligation.

Of course, the best way to go about this is to engage the services of a tenant representative when you anticipate the need to assign the lease, whether it is to downsize or to upsize. Tenant reps not only are intimately familiar with the market in helping you relocate, but also knowledgeable about the landlords in the area and what they may be willing to negotiate. If the tenant rep has brought other tenants to the building, the landlord may be interested in staying on their good side, in order to bring more future business.

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By: James Osgood

Office Leasing Tips , Office Rental , Office Space Negotiations

Finding Office Space for Lease in a Tighter Market

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Despite—or perhaps because of—the slow economy, the office vacancy rate across the nation declined slightly in the last quarter of 2012, to 17.1%, according to the real estate analysis firm Reis, Inc. This is because new office construction is virtually at a standstill in this economy, so businesses must find office space within the existing supply.

What does this mean for you? It means that you will need to be aware of some trends when finding office space for lease in this tighter market.

  • Asking and effective rents grew by 0.8% in the last quarter, meaning that it could cost you more to rent that new office space than it would have last October. This is also the ninth consecutive quarter in which rents have increased, meaning that while the economy is still generally sluggish, there is some recovery for commercial real estate.
  • The sharing of office space is becoming increasingly popular. Small startups and shrinking businesses are sharing space, and rent, in an effort to save money. This can work, and if you find the right fit, it can even be synergistic for complementary businesses. However, there are also pitfalls to avoid, in terms of assumptions and expectations, differing company cultures, and—most important—making sure that you get the parameters of the relationship in writing.
  • Leased office space per worker continues to shrink. According to the Memphis Business Journal, “Leased office space averaged 600 square feet per worker in the 1970s, but that number had dropped to 176 square feet in 2012.” Companies continue to find efficiencies, push for collaboration, and re-engineer existing space to accommodate more workers. This trend will doubtless continue in the face of increasing rental rates.

So how can you address trends such as these when seeking leased office space? We suggest that you start with us. Our tenant representatives are very familiar with these trends, and with local office trends, which vary from one metropolitan area to another. They will help you find the best possible options for leased space in your city, at no cost to you. Contact us today to get the process started!

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By: James Osgood

Flexible Workspace , Office Leasing Tips , Office Rental , Office Space , Office Space Negotiations , Tenant Representation