Entries Tagged as 'Office Rental'
This is a blog post from one of our Local OfficeFinder Memebers in the Dallas Office Market.
"Nearly everyone enjoys the success of an expanding business. More work, clients and employees allow your business to not only become more successful, but also make a greater impact on your field.
But rent is expensive. It's usually the 2nd-highest expense for most companies. Wouldn't it be great is you could grow your business without taking on the financial burden of expanding office space?
Well there are several simple and cost-effective alternatives to expanding which can be implemented within the perimeters of your existing office.
Rearrange. It seems simple enough, but you’d be surprised how much more efficient you can arrange your office. Your office layout may not be set in stone, so explore a redesign of the layout of your space - remove walls, move or replace the furniture to promote density where extra space is underutilized or unnecessary. Rearrange the layout of cubicles. Cubicles are designed with flexibility in mind, so use them to your advantage rather than arbitrarily partitioning your employees.
Open. Collaborative spaces not only take up less square feet, but they can also promote a more creative and efficient workplace. This is especially true of younger workers who don't want to be isolated in private offices. The social aspect of an open plan where they can talk to each other throughout the day can make a big difference in their happiness in the office. My son recently passed on an offer from another company which included a very large salary increase primarily because the office environment of the new company was very quiet, staid and basically boring. Not everyone will feel this way, of course, but with a generation of workers who have spent a considerable amount of time socializing, studying and working in Starbucks, the buzz of an open environment is preferred.
Cluster. Salespeople are often not in the office much. Instead of dedicating offices or desks in an open layout to each individual person waiting for the occasional visit, condense them into a shared work area. A few shared desks for use as-needed by your on-the-go sales team can save a lot of space and not take away any of the resources. With a shared workspace in place, you can cycle employees between working at home and working in the office. This adds a new dimension of flexibility while allowing for less or reallocated office space. Dynamic office situations such as these can break up monotonous ruts and give a new energy to an office and your employees.
You don't always need more space to expand your business. Sometimes all you need is a new plan.These suggestions may not work for every business and that's okay. It may only take an architect or furniture expert to review your situation to provide solutions other than just taking on more office space. Better to pay an architect, contractor and/or furniture dealer once than to pay the landlord every month for years."
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By: James Osgood
Dallas Office Space , Office Rental , Office Space , Office Space Design
People often think office space leasing is not much
different than renting a condo, apartment or house. Having leased residences in
the past, the business owner may think that doing it alone is the way to go.
This can be a huge mistake!
You are an expert on your business, but you don’t often deal
with leasing office space. Probably no more often than every three to five
years has your business grown to the point you have rented larger office space
or have decided to go for a better location. Landlords are experts on leasing
office space because they do it all the time. You need an expert in office
space leasing on your side, too. Choose a well-qualified tenant representative
to allow you an even playing field with negotiations.
Do not think that involving an office tenant representative in the
office space leasing process will cost money and result in paying more rent.
This is a complete misconception. In fact, the cost of services of a qualified
tenant representative is normally included in the asking price whether you
choose to use the services or not.
When negotiating an office space lease, an office space tenant rep will
save you money and make certain you don’t make any costly mistakes. The
confusing verbiage of the lease can easily be explained by the tenant rep of
your choice. After all, the landlord most likely has a commercial broker
listing agent to represent him or her. The landlord’s agent will try to ensure
the landlord gets the best price for the property possible. Why shouldn’t you
have a qualified tenant rep by your side as you enter into negotiations for an
Even if you already occupy a great office space, when it
comes time to renew the lease, your tenant rep can help you get the best
renewal lease possible. If you are considering vacating you current office and
moving into another location, a good tenant rep will help you locate the
perfect space and help you negotiate the new lease.
Entering into negotiations with a tenant rep will save you money
in several ways. The office space leasing process is quite complex and often
confusing. The decisions you make will impact the price you pay each month for
the space in which your business resides, resulting in an impact on your
profits. The numbers and line items in the lease can be translated by the
tenant rep into simple language you can understand, allowing you to make sound
decisions during negotiations.
The knowledge and experience of the tenant rep allows him or
her to have a grasp of current asking prices and lease incentives. With the
guidance of an expert tenant rep, you have the subtle leverage you need when
negotiating the lease and any changes you find necessary such as tenant
improvements. Also, the tenant rep will make sure you have the documentation
you need to protect yourself and your business during the duration of your
Going it alone in the office space leasing process simply
doesn’t make sense when there are qualified tenant representatives available to
help you and it won't cost you to obtain their services. There are a few questions you need to ask when choosing the right
tenant rep for your needs:. These include:
- Can you commit the time necessary to work with
me on negotiating the lease?
- Do you primarily ask as a tenant advocate as
opposed to a real estate listing agent?
- Are there any potential conflicts of interest if
we work together on this negotiation process?
- What experience do you have in negotiating
leases such as the one I am considering?
- During the last 3 years, how many tenant
representation transactions have you handled?
- What is your philosophy on office space lease
- Do you enter into an Exclusive Representation
Agreement when working with a tenant?
- How will you be paid? What commission do you
expect to earn?
- What if I am not happy with your services?
If you want to lease the perfect office space
and pay as little rent as possible while enjoying the maximum benefits and
incentives, do not attempt to negotiate without a tenant rep’s involvement. The
tenant rep’s job is to ensure your interests are protected and get you the best
possible deal. It just makes good sense to have a local commercial broker who
has an excellent reputation for helping get tenants the best possible lease
benefits to assist you with the office space leasing process. Commercial
property leases are simply not “Do It Yourself” projects; Office Finder
services are readily available to provide the expert experience you need
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Top 3 biggest mistakes office tenants make (on SlideShare.net)
Lease Negotiations , Office Leasing Tips , Office Rental , Office Space Negotiations , Tenant Representation
Choosing to lease office space for lease is a big decision. The entire
process can be quite confusing and it is easy to get a less-than-perfect office space deal
if you don’t know what questions to ask and what certain terms mean to your
What does $XX.XX/SF
mean when stated in a lease or advertisement for office space? The cost
stated usually refers to the yearly lease cost per square foot. An example would be
1,000SF of office space quoted at $10.00/SF would mean a rate of $10,000 per
year or $833.33 per month. Although, in some markets it is based ont eh monthly cost. Make sure you know!
What does Rentable
Square Feet mean to me? The term rentable square feet refers to the total
square feet of office space used to calculate the rental rate. It may include
an apportionment for the lobby, halls, and other common areas in the building
that are available to you to use along with all the other building tenants.
What does Useable
Square Feet mean? This is the total square footage inside the walls of the
specific office space you are considering leasing; the acutula square footage you get to use. It refers to that area that
is for the sole use of the tenant and does not include any sort of common area.
Basically, this is the amount of office space, expressed in square feet, that
you will be leasing as private office space in which you can conduct your
I was presented a
lease that has the term “CAM charges” in it. What does this mean? The
acronym CAM stands for Common Area Maintenance and CAM charges refer to the
cost of services and charges to maintain common areas, including any parking
areas owned by the building owner. This can include landscape services, common
area lighting, parking lot maintenance, cleaning service for common areas, or
even snowplowing if that is needed. The actual expenses are shared by all
tenants and are quoted as CAM charges. This is calculated as $XX.XX/SF with the
SF being equal to the rentable square footage of the leased area. These charges are usually paid monthly based
on the estimated yearly cost. At year end, the actual CAM charges are
calculated and any refund or additional payment is settled with the tenants.
What is NNN when
appearing in a lease rate? The term “NNN” refers to any additional actual
expense items incurred by the building that are split between all tenants. This
may include insurance, property taxes, or CAM if CAM is not included separately.
It may be called “Additional Rent” rather than NNN. Be sure to ask exactly what
is included in the NNN because it can differ from landlord to landlord. It
probably will not include any utility costs except that used by the common
How utility costs are
calculated and are they included in the rent? In some smaller office
spaces, the cost of utilities may not be calculated separately but in larger
spaces, the tenant often has to establish their own separately metered
utilities. In some cases, the landlord has all unities metered and the tenant
is billed for a share of the total utilities based on the size of their office
space. Be sure to inquire about how
utilities are billed and exactly what you are responsible for paying.
What does Gross Rent mean? The term Gross Rent means the
landlord is paying all expenses outlined as NNN expenses and the tenant only
pays the Gross Rental amount stated in the lease. The utilities may or may not
be included in Gross Rent, so be sure to ask.
Can I get a short lease
to try out the office space? Most landlords offering leases on commercial
office space will not consider less than a one year lease. Some require two or
three year leases as a minimum. In general, the longer the lease, the more
valuable it is to the landlord and the easier it will be to negotiate what you
want. Don’t plan on less than a one year
I love the office
space I found but there are a few things in the layout that need to be changed.
How does this work? The layout of an
office space varies from building to building and seldom do you find the
perfect lay out. The landlord is likely to be reluctant to spend money on a
tenant requested change. It is traditional that new paint, carpet cleaning, and
general area maintenance be performed by the landlord. In some cases tenant
improvements can be negotiated at the landlord’s expense, often on the longer
term leases. In other cases the tenant may negotiate the right to alter the
layout at the tenant’s expenses.
Your best bet is to use ther services of an Office Space Tenant Represenative who will help you through the maze at NO Cost to you, making sure you avoid costly mistakes.
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By: James Osgood
Lease Negotiations , Office Rental , Office Space , Office Space Negotiations
Recently smaller commercial office spaces have become the
solution for small and medium sized businesses. Some businesses have adopted
non-tradition work spaces in which workspaces are shared by whoever needs them
at the moment while other team members work on the road or meet with clients.
Meeting spaces have becomes smaller and other creative solutions have been
implemented to save overhead due to the last few years of tough economic times.
If your business happens to be located in a small office
space, you need to maximize the space, both in terms of visual effects and
efficiency. The idea is that clients should well welcomed and comfortable while
visiting the smaller workspaces and meeting rooms. Here are a few tips for help
you maximize a smaller office:
Paint the walls all a single color throughout the office space. Don’t
decide to make one room different because it will ruin the visual effect
of creating a larger area than actually exists.
The brighter the commercial office space, the larger it will seem. Dark
spaces tend to close in and appear smaller, so be sure to include bright
lighting, preferably full-spectrum lights, to make the small office space
grow to a larger size visually.
Choose plants that are tall but narrow. Any plant that spreads out widely
will close in the space, but tall plants give an up and down visual effect
that does not close the space in any way.
Choose a top-quality flooring that is extremely durable and use it
throughout your office space. Do not place area rugs over parts of the
floor; the idea is to create a larger visual space in your commercial
office space by allowing the eye to move from area to area with any breaks
in the flooring color or texture.
Place groups of smaller artwork together rather than placing a single
large piece of art in the office. The smaller groups make the brain think
that there is more space than is if a large painting or poster is place on
the walls. Strategically place a few quality items on tables, desks and
other areas; whatever you do, avoid cluttering the areas in your
commercial office space.
Stations: Purchase glass work stations for your office space so that the
eye does not really see the object as a break in the visual effect. Large,
heavy wooden desks will create a visual break and reduce the maximization
Implement these ideas in ways that suit your specific office
space and you will find that the space expands and grows larger. This will allow
you to fully enjoy your new, lower overhead without experiencing any negative
Find Office Space
By: James Osgood
Flexible Workspace , Office Rental , Office Space , Office Space Design
After you and your office tenant rep have negotiated a
lease for your office space that protects the interest of your business and is
agreeable to the property owner, it is finally time to sit down and sign the legal
document, a binding office space lease that allows you and your team to occupy
the chosen space. You should
have your tenant rep there to cover any last minute questions you might have.
Having a real estate profession in the person of your
selected office tenant rep present may seem redundant since you have sought counsel
and advice repeated during negotiations from your tenant rep. Yet, verify that
the changes you have requested to the office space lease have been worded
correctly in the final document can be tricky for those with less experience. A
tenant rep hasthe experience necessary to be sure the wording does not turn a
change made to favor your interests into a clause that could trip you up and actually
cost you money. Remember, your goal is obtain the best possible office space at
the least cost with right to require or have performed the tenant improvements
agreed upon and avoid passing rising or extra costs on to you. Another point
your tenant rep will re-check will ensure that the rent increases over time do
not become excessive.
Do not allow yourself to be rushed into signing the final
office space lease without thoroughly comparing the notes you made of requested
changes to the final document. Plan at least one to one and one-half hours for
the lease signing to allow the thorough review. Whether on purpose or
inadvertently, it is possible an important change could have been left out or
misworded, changing the intent of the verbiage completely. If any part of the
lease does not meet with the changes negotiated, stop the signing process and
require an edited lease be delivered before signing.
You should also require a property checklist which itemizes
the fixtures provided in the office space. For example, if the landlord is
providing a refrigerator or table and chair in the break area, these items
would be listed, inspected and any damages, however slight, should be noted on
the checklist. Also, all walls, flooring, ceiling, doors, service outlets, and
environment climate control units should be inspected during lease signing and
their exact condition noted. Any damage, even small dings or excessive wear and
tear, should be noted so that when you eventually relocate and release the
office space to the property owner you will not be changed for these damages.
Your tenant rep will help you go through the property and look for items
necessary for your checklist. Many landlords use a standard checklist so be
sure to note any items on the list that do not apply to the office space you
You will need to bring payment to the lease signing table
for the security deposit, any key deposits and rental payments, or whatever
other payment arrangement is outlined in the lease. Customarily initial payments
include first month of rent but sometimes rent for first and last month is
required. Sometimes if significant tenant improvements must be completed before
occupancy (be sure this is noted in the lease along with completion dates), or
the occupancy date has been established for sometime in the near future, only
payment of the security deposit may be required at lease signing with rental
payment due upon taking occupancy of the office space. Payments can usually be
in the form of a business check, money order, or certified cashiers check and
in some cases payment can be made with a personal check, debit or credit card.
Most landlords no longer accept cash due to the inherent danger of carrying
significant amounts of cash and the possible accounting confusion if business
cash becomes mixed with personal cash. Be sure to understand in advance what
methods of payment are acceptable to your landlord and arrive prepared with the
correct payment in one of the acceptable forms.
Once you and landlord have both signed the lease for your
new commercial office space it is too late for further negotiations. You will
be given keys to the property and it becomes your responsibility. You can then
pat yourself and your real estate tenant rep for a negotiating job well done.
Find Office Space
By: James Osgood
Lease Negotiations , Office Leasing Tips , Office Rental , Office Space