Leasing office space is usually a big step forward for your business. Usually it’s a very positive step, reflecting growth and optimism. It can get very complicated and it is easy to make mistakes. There are lots of decisions that have to be made and mistakes can be costly. Here are a few of them that are important you avoid when leasing office space:
Exit Options
Make sure you build in reasonable exit options since you can’t predict the future. You never know when you may need to get out of a lease. Protect yourself by adding an option for subleasing or assigning just in case you need to get out of your lease..
Stay Detached
Don’t allow yourself a feeling of attachment or commitment to a specific property. Make sure you have at least 2 – 3 options. Remain detached so you can get a fair deal or continue moving on searching properties until you find a fair deal.
Get Concessions with Long Term Leases
Most commercial landlords want a 5 – 10 year lease commitment. If you choose to enter into such an agreement, make sure the landlord provides you some concessions in exchange, which they should provide. Some of the most common concessions include free rent for a set period of time or the landlord paying for a build-out of the space.
Stay Calm
Never enter “panic mode” when in the middle of negotiations. Sometimes circumstances force us to move when we’re not ready to (e.g. landlord sells your current building, rapid growth of your business), but this doesn’t mean you should make hasty decisions. Don’t give in or compromise on things you must have. Temporary solutions exist (e.g. office sharing) and may actually prove more cost-effective and flexible.
More Mistakes to avoid when leasing office space.
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