Entries Tagged as 'Office Leasing Tips'
When you rent an office space, the size and shape are always going to be the first things you're going to scope out to suit your business. What happens, though, when you'd prefer doing some improvements in that rented office space after you move in? Called tenant improvement, you'll need to negotiate with your landlord in order to get the improvements you want. But will you really be able to do that when the cost of tenant improvements have skyrocketed?
Negotiating the Price with Your Landlord
If you're a startup business, paying for the entire improvement of the office is likely out of the question. That's where negotiating with your landlord comes in and whether he or she would be willing to pay at least half of the costs. Whether you get an affirmative answer or not may have to do with the length of your lease. Should you have plans to stay at least two years or more on your lease agreement, the landlord might agree to pay 50%. Otherwise, if the landlord thinks you'll be out of there within a year, the cost wouldn't be much of an investment.
Keeping the Tenant Improvement to What You Really Need
There's such a thing as asking too much out of your tenant improvements and expanding to the point where it's extraneous. Your landlord may balk at paying half for something that isn't absolutely necessary. As well, your own budget could suffer if you add things that won't be needed for the type of business you have. Even so, have a lawyer read over your lease so you know all your rights are covered.
The Exploding Costs of Tenant Improvement
We wrote on the matter of TI costs skyrocketing a while ago. Many people think costs should be lower. Inflation, however, has made construction prices rise due to the higher cost of materials. This plus rising minimum wages for the workers might make tenant improvement out of the question unless you're lucky enough to find a budget construction company.
Regardless, you also don't want inferior construction work done.
In today's economy, it's best to approach any office improvements judiciously and mainly look for an office space that can already accommodate your needs. And there's no better place to do that than OfficeFinder. We'll help you find an office to rent or purchase without the usual hassles.
Contact us so we can get you started finding an already improved office without any hassles.
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By: James Osgood
Lease Negotiations , Office Leasing Tips , Office Rental , Office Space
So, You think you might want to change your traditional office into an office hoteling agile office space but have no idea how or where to begin. From the experience of businesses that have successfully performed the transition, we’ve collected some steps that will help you.
Do Your Research
Research on the Internet net and learn about the types of companies that have make successful transitions. Look for ways where your business is similar and ways in which it is different. Do a study on your office over the period of a week or more and assess the actual occupancy. If you find your company office space has 20% or more vacant on average, then this may be a good alternative for you. The higher the normal vacancy rate, the better suited to office hoteling. If you find you run 50% or more vacancy, it only makes good sense to implement office hoteling.
Identify Employees Not Suited to Office Hoteling
Look at your skill mix. Few companies have 100% of their employees away from their traditional workspace the majority of the time. Your receptionist, office manager, some executives and management are in the office on a 90% or greater basis. The traditional office is where they perform their jobs. Those workers should be included in the office hoteling plan as permanent on-site and should remain with their traditional assigned workspace. Choose employees available for agile working is the key to making work more efficient for the hoteling workers once the transition is made.
Determine the Maximum Employee Density on an Average Day
Having looked at average occupancy vacancy rates previously, you should be able to translate that study into a highest average occupancy rate. The lower the occupancy, the more money you can save, but you need to be careful to provide enough hoteling workspaces. If not, you could find unhappy employees standing around waiting for workspaces. It is far better to set up an extra workspace or two to be on the safe side. Office hoteling workspaces don’t have to be large or take up a lot of square footage. Better too many than too few.
Choose an Easy to Use Office Hoteling Reservation Software
When employees choose to come in to utilize a workspace or conference, they will need to log into a control system; the office space hoteling reservation system. By entering a unique identifier, they can pick any available workspace to use for their time in office. They can reserve a meeting room if a client gathering is their purpose, even reserving those spaces several days before the meeting. When the employee has finished using the space they reserved, they simply log out of the office hoteling reservation system, or in the case of a meeting room, might close out their meeting room use and select a workspace to make calls or type up minutes of the meeting. A good office hoteling reservation system will even know which workspace they are using and allow the receptionist to route their calls to where they are at work.
There is Help
Office Hoteling is not a new field and there is help available. There are consultants who specialize in this field and can help you with the transition. it is not necessarily inexpensive to implement an office hoteling system, but it results in savings on average of 30% - 40% of your office rental costs. It is well worth the effort.
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By: James Osgood
Agile Workplace , Office Hoteling , Office Leasing Tips , Office Rental , Office Space Design
Whether you are relocating your business or are moving into your first office, finding the right office for rent can make a big difference to your company’s productivity. While the look and feel of the building, its landscaping and its location determine the reaction of clients, customers and suppliers, the setup of the interior may put you behind the eight ball when compared to your competitors. The easiest way to avoid this pitfall is by staying on top of current trends and implementing them as much as possible.
Avoid the Cubicle Setup
Invented in the 1960s by a savvy office furniture manufacturer, the cubicle has long been hailed as the most conducive setting for the office worker. In a wireless world that no longer needs a lot of the office machines and accompanying furniture that used to be the norm, the cubicle can now actually be a damper on your staff’s productivity. Business Insider notes a survey of 7,000 professionals in a global setting, which had 19 percent decree that the cubicle is a thing of the past.
There is no Need for Offices with Doors
With the exception of doctors and lawyers, the same survey found that 16 percent of respondents noted the disappearance of individual offices with doors. This is particularly true for managers and other executives. Rather than working behind closed doors, 21 percent of survey respondents noted that these professionals are joining the staff in an open workspace environment.
Become Part of the Trend
Commercial real estate brokers have been examining these trends. It has become clear that today’s company thrives in an office space that meets three distinct criteria.
- Support of ad hoc team work. When wireless technology is the norm, there is no need for workers to stay at their desks. When a project calls for collaboration, team members occupy the same work space for the duration of the job. Creative office designers have experimented with huddle rooms and smaller conference rooms with movable wall panels.
- Layout is king. There no longer is a need for the big office that supports plenty of individual workspace. Rather, go for a smaller space as long as it has the open floor plan that lets you set up work spaces based on projects and current business needs.
- Embrace the coffee shop concept. It may seem at odds with everything that you learned in business school, but there is a strong trend toward renting a space that is kept large by adding a wide variety of seating options versus formalized work stations. Remember, wireless technology makes it possible to take the laptop or tablet anywhere your workers need to be.
The professionals at OfficeFinder, LLC know that it can be a difficult task to find just the right space. Contact us today to discuss the current trend in office rentals and to find out how we can help you get set up.
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By: James Osgood
Office Leasing Tips , Office Rental , Office Space , Office Space Design
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
A typical property owner has ample experience renting out a space. Do you? As some tenants leave and others come to view a property, the professionals know the ins and outs of contract negotiation. As the prospective tenant, you take on the rental of office space only occasionally. Making this process work for you depends on your knowledge of the rental market and the advisors you choose to help you with the office rental process.
- Make the 12-month commitment. What sets apart and office lease from an office rental is the length of the time commitment. Your decision to rent only commits you to the office space for a short period of one year. If you are not sure that you want to go beyond a year or 18 months with a lease, stick with the basic rental agreement.
- Know the market in your target area. Zoning laws govern the ability to use properties as office buildings. Established office properties are therefore frequently in high demand. Yet sometimes you can find amazing properties that combine residential with commercial usage. If your company would thrive in this type of environment, work with an experienced office finder who can point you in the right direction.
- Understand your space needs. The average worker in your office needs between 125 square feet and 225 square feet of usable space, depending on the tasks that are being performed. Remember to also factor in the space for equipment and file storage as well as conference rooms. A tenant representative can work with you to narrow down your rental space requirements, which can save you quite a bit of money over the course of the rental agreement.
- Negotiation skills are a key element of rental discussions. It pays to have experience in the negotiation of rental agreements. Location, size of the space and available amenities are some of the factors that determine the asking price for an office rental. Outdated technology, needed improvements and hiccups in the spatial design of the space are talking points in your favor. Coming to a mutually beneficial decision on a suitable rental price takes skillful negotiation. Unless you know for certain which talking points outweigh the others, get help from an office tenant rep.
At OfficeFinder, LLC, we know that the rental of office space can be a stressful experience. You have a company to run and do not always have the time to immerse yourself in the study of rental negotiations. Contact us today, and we will do the work for you. Working with a tenant representative is free of charge, and you will love the results.
Find Office Space
By: James Osgood
Office Space , Office Rental , Tenant Representation , Office Leasing Tips