Category Archives: Office Leasing

4 Questions To Ask Before Signing An Office Space Lease

If you’re operating a business and planning to have a physical location, an office space lease will be one of the things that will put a dent in your overall budget. In fact, committing to any office space for your business presents more complexities than simply renting a house. For one, most leases will oblige you to rent the space for three to five years, which can be intimidating. It is always best to take advantage of the services of a qualified tenant representative, like the ones we have at OfficeFinder.

There are a number of important factors to consider before signing an office space lease, including not only the location but also having an understanding the intricacies of the contract. It would also be best if you’re equipped with the right questions before signing a deal with the landlord. Once again, here is where the services of a good tenant rep will be beneficial.

To help you out, here are 4 questions you need to ask a potential landlord before signing a commercial lease agreement

1. Is the lease assignable?

If you’re not sure if your business can still operate within the years stipulated in the lease agreement, it’s essential to ask your potential landlord if they have the right to terminate your lease in case of an assignment. A lease assignment is when you have someone take over the office space in the case that you want to sell your business. 

Assigning a lease is important for the tenant since it’s a way for them to get out of the lease agreement. Hence, a tenant won’t technically violate the lease agreement. Keep in mind that a landlord also has the right to approve and renegotiate new terms with the assignee. The landlord may also decline any assignee if they find them financially incapable. A key clause to include in the lease is that the Landlord will not unreasonably grant approval.

By knowing if the lease is assignable, you’ll rest assured that there’s a way to get out of the lease agreement if ever your business fails to grow without burning a hole in your pocket. 

 2. Do you have any policies for moving in or out?

Inversely, if your analytics are showing promise for your business for years to come, then time is of the essence––you want to establish a physical location immediately. In this case, ask the landlord about the policies for moving in. How soon can you move in? Is there any free rent available? What are the payment options? 

Additionally, you may also want to know the moving-out process. For one, you don’t want to break the agreements contained in a lease agreement as it comes with grave consequences. To paint a picture, here are some common penalties you may face if you break a lease agreement: 

Pay large fees: Technically, landlords are running a business. As with every business owner, they don’t want to give up any financial opportunity. By breaking a lease, you may ruin the landlord’s flow of income, which is why breaking a lease comes with a fine. Sometimes, the fine may be around one or two months’ worth of rent.

Face legal consequences: If your landlord is litigious and you want to break the lease agreement, then there’s a huge chance that you may end up with a lawsuit. However, a lease termination has a rare chance of going into court, as it can be quickly settled by paying a fee, but it’s still a possibility.

Hurt your credit score: Credit scores are the ones that’ll determine your creditworthiness, which means that lenders will use this score to gauge if you’re financially capable of paying any debts. If you terminate a lease before the contract, then your landlord may send your debt to a collection agency, ruining your creditworthiness.

 3. Can alterations be made? 

Since businesses operate differently, you may want to make a few changes to the space so you can make the perfect working environment for your workers. But since you’re leasing the space, you’ll need permission to change something, even the carpet and paint color, which is especially true for a shorter-term lease. Hence, ask your landlord if they’ll accept any alteration to the office space.

 4. What’s included in the rate? 

The rental rate may not just be the payment of the space. In fact, some building owners may have some inclusions in the rental rate like taxes, insurance, utility and cleaning costs, know as a  fully service lease. Still, some landlords may require you to pay for those services yourself, know a a NNN lease. And others a combination of the two.

Moreover, if the space comes with an HVAC, ask whether the rate already includes any possible repairs and replacement, or will you be the one covering the cost for those. Knowing what’s included in the rental rate will allow you to set aside some money for any possible repairs. Additionally, you’ll be able to set aside a monthly budget for any recurring fees, like electricity and water. 

Also, find out if there are annual cost pass-throughs of amounts over a base year. These are usually in fully serviced leases where the Landlord pays the base year expenses of the leased office space and tenantss pay a pro-rata share of increases over the base year.

Final words

Before committing to any office space, you must ask the questions above and learn some tips and tricks to negotiating as any mistakes may end up costing you. For instance, if you expect that you can simply change the space but the owner didn’t agree to this, you may end up returning the office space to its original condition, which is surely an expensive endeavor on your part. 

So make sure that you’ve meticulously understood the agreement as well as any upfront costs before signing a commercial lease agreement.

And, if you’d like some free assistance, make sure and take advantage of the services of a good tenant representative. We can help with that. Contact us today for a no-obligation discussion on how we can help.

7 Ways Landlords Qualify Commercial Tenants

How To Find Offices To Rent In Your AreaPeople who invest in property often turn to rentals for a steady income stream. However, it is often challenging to weed out unfavorable commercial tenants during the screening process. Commercial landlords who lease office space are no exception.

 If you are one of them, you must be very particular in ensuring that you are choosing the right tenant. You would not want to end up with a high tenant turnover rate, which can affect your annual profits. But how do you screen potential tenants and make sure they are meeting your qualifications?

Unlike ordinary property rentals, there is so much at stake in commercial leasing and renting. Property owners need to be prudent in giving out information unless you are fairly certain who you are talking to and what they are looking for in a commercial property.

If you are a tenant looking for office space, you need to know what landlords consider when approving new commercial tenants. From a lndlords point of view, here is what they usually do.

Conduct a Prescreening

Often considered a time-consuming process, tenant prescreening can usher in a wealth of benefits in the long run if done right. For one, it is one of the best ways to eliminate prospects that do not meet your set criteria. If you lay down prescreening requirements, you set expectations early on in the process, which means you will only attract high-quality tenants.

You can start by outlining your prescreening conditions in your rental listing. As the first point of contact between you and thousands of other tenants, rental listings generate interest and help ensure that the tenant screening process goes smoothly by weeding out unqualified leads. For example, you include a statement that encapsulates your condition, detailing how much they would pay upfront for the screening process and getting their approval for completing the application form and subjecting them to a background check.

It is also essential to set out a couple of prescreening questions. This can range from who they are and who will guarantee the lease to the nature of their business and who their target customers are.

Verify The Business and Income

Another crucial step in qualifying your tenants is to ensure that they have a healthy business and pay rent months down the road. That is why you need to know what kind of business they have and how well it is earning.

As a landlord, you may require them to submit bank references, personal and corporate financial statements, and a copy of their business plan. Just bear in mind that other documents you can require might depend on the type of business they are running. A corporate entity, for example, might need to provide you with a certificate of incorporation, director names, and many more. On the other hand, a limited liability company might have to give the names of their current members and managers, articles of organization, and certificate of filing, among many others.

Check Their Creditworthiness

Tenants must also establish their creditworthiness. This will ensure that they will pay their rent on time and uphold any lease obligations you both agree upon throughout the lease term. Some of the factors you need to consider when checking their creditworthiness include their financial records, rental history, payment track record, industry assessment, and tenant attitude.

You might need to delve into their income statement, balance sheet, and income tax returns that will give you a solid picture of their financial standing.

Arrange for a Background Check

A background check is a handy tool for checking someone’s character, credibility, or even financial stability. If you want to ensure that the potential tenants of your commercial property are to be trusted, then conducting a background check is only logical.

Some of the information you will uncover in the process include address verification bankruptcies, identity verifications, criminal convictions, credit history, and other significant details that will help you decide whether they are worth leasing your space to. When it comes to checking criminal record history, you must find a reliable company for this kind of background check as it can be very tricky.

Just keep in mind that there are parts of a background investigation where consent is required, so you must include this condition in the prescreening process. Hence, your potential tenants are aware, and it will be easier to ask for their consent when necessary.

Rental History Reference Checks

If the business of a potential tenant is not new, and they are moving from somewhere else, it is only sensible that you will verify their rental history. Ask essential questions like the property’s address that they previously leased, the length of tenancy, the amount of the monthly rental, and their reason for leaving. It is also vital that you find out if they have paid their rent consistently and on time.

Know the Tenants’ Needs

While you have already set out your requirements and expectations, you must also be privy to what the potential tenants need. There is no point in wasting your time on a lead who has no idea about what they need. It can be utility needs, zoning, and other details that will affect the leased space. This will help you avoid complicated situations later on when tenants start negotiating for nonnegotiable items on the lease terms.

Set a Proper Time Frame

You would want to avoid your space being vacant for too long. After all, you are paying for the upkeep of your property. Regular income is needed to maintain the place. To ensure you and the potential tenants are on the same page and pace, you must communicate specific time frames. They should be able to move in quickly once everything is settled. You can always weed out those who are unsure.

 Wrapping It Up

The qualification process for commercial tenants is not something that can be rushed. It entails the landlord evaluation a lot of considerations that are important for the property’s safety and long-term benefits. Landlords are looking to ensure that they have quality tenants and mitigate risks. Tenants need to understand the hoops landlords will likely require them to jump through in order to ensure a smooth leasing process.

Having a tenant rep on your side can help the process go as smoothly as possible. If you are looking for office space, we can help with our national network of top tenant reps. Contact us today so we can show you how we can help you find the right office at the best price. No Obligation!

 

4 Professionals You Need on Your Side When Leasing Office Space

Leasing Office SpaceLeasing office space requires a lot of work. It is not easy. There are many things that need to be considered before choosing the best location for your business. Most businesses lease their space and need to deal with a commercial lease. While it is essential to select the best location that will benefit you and your business in the long term, there is a lot more to do than just finding the right space. A good location is an advantage especially in creating a sophisticated brand image for your business. Your business also needs to have a place where both employees and clients are happy.

The process of acquiring an office space can be lengthy. You need to make sure to allow enough time to complete the process. Understanding the leasing process and timing and who are the people that can help you with it is very important for a timely completion to the process. You need to make sure to get the lease agreement negotiated properly to make sure you don’t have unintended consequences pop up in the future. With the right team, you can get a great space at a fair price, with terms that meet your needs and no future suprises. Here is a list of the professionals who can help you when leasing office space.

1. Commercial Real Estate Broker

Yes, we are commercial real estate brokers who specialize in tenant representation. Yes, we are biased by decades of experience. The basics: Commercial real estate is a property that is purposely used only for business or investment purposes. These properties are generally owned by investors who collect the rent from operating businesses in the property. Commercial real estate brokers are people or the middleman between sellers and buyers. They help their clients with selling, leasing, or purchasing commercial real estate.

Not all commercial real estate brokers do the same thing. A commercial real estate tenent rep broker can work independently, unlike commercial real estate listing agents. A tenant rep works solely for you. The listing agent works solely for the landlord. But how can a tenant rep help you with the office space lease? Aside from the fact that they can help you save time, money, and effort, they can also provide numerous advantages. One of the most significant advantages of having a commercial real estate broker is their knowledge of the market, the players and the ability to analyze lease terms.

Acquiring an office space without the help of a tenant rep is like going into court without an attorney. Something you don’t want to do. In addition, not only do tenant reps work soley for the tenant, the tenant does not have to pay them directly. In most cases their fee is paid by the landlord’s listing agent. The commission is already built into the price of the space. If you don’t take advantage of using a tenant rep, the listing agent will not only take advantage of your inexperience, but also pocket the entire fee.

2. Accountant

Accounting is a crucial part of any business. One must understand the role of an accountant when leasing an office space. Commercial accountants, specifically, are people who are responsible for the efficient running of the commercial elements of an organization’s finances. They help companies with budget analysis, audit reporting, portfolios, and other accounting related to the business. These people can help you understand further how commercial real estate works and what you can do to maximize your profits.

It is crucial that you understand the tax issues, budgets, and planning in your business. That is what accountants can help with especially when choosing the best office space for your business. Most significantly, accountants provide you the information you need in the contract negotiation process to avoid making financial errors.

3. Attorney

Commercial lease review is one of the most nerve-wracking parts of the office leasing process. Even with multiple experiences in a commercial lease, specifications still change depending on the landlord. Every landlord has different lease. Furthermore, complicated terms are also on the line especially in commercial leases. While a tenant rep can review a lease and make business recommendations, getting help from an attorney to review the legal aspects of a commercial lease is important to make sure your rights are protected.

An experienced real estate attorney can easily navigate and review a commercial lease’s legal and financial specifications. They can make the details easier for you to understand. any legal issues about the lease.

4. Architect

Whatever location you choose, an architect / space planner is someone who can help define how to best use the space. Not only can they prepare a space plan, but they can help you identify other factors that can affect the project budget, project schedule, and the general feasibility of the location.

Contacting an architect early in the process is a good idea. Even before you have chosen a location. they can be your guide and added protection in the decision-making process. An architect knows about any construction codes and zoning regulations your business must comply with. An architect partnered with a designer will also help you with modification or renovations on the office if needed.

Other Office Leasing Considerations

In addition to the help you get from professionals, there are still many things you need to consider. These considerations are significant for your business and your employees in deciding on a final location. A list of other factors you should consider when choosing a new office space include:

  • Location and accessibility
  • Price
  • Growth constraints
  • Technology and infrastructure
  • Layout and design
  • Contingency plan

Leasing office space will always be a challenging thing to do. Obtaining enough knowledge, guidance, and understanding will help smooth the way. That is where we come in. Did I mention that what we do is help businesses acquire office space? We have been doing it since 1995 and have developed the finest online network of local tenant reps. We have over 600 of them throughout the US and Canada. If you are looking to make a move, we’d love to talk with you. No obligation to contact us. Hope you do.

Tips To Make Office Relocation Go Smoother

Manage Your Office RelocationAs you are running a company, you have tons of internal and external responsibilities to take care of. From producing goods and services, management of employees, to the satisfaction of customers, a lot needs to be done. However, these are not very difficult once you compare them with one particular thing. Do you know what is more difficult to handle? Office relocation.

4 Tips To Make Office Relocation Smoother

Office relocation presents many challenges that you may not be prepared to tackle. The entire setup needs to go someplace else – all the hardware, systems, and office address will move, and it’s nowhere easy. However, there are a string of things that you can do to make sure the office relocation happens very smoothly without any disturbance. We have put together some tips that you can use to make your office relocation easy:

Plan In Advance

First thing first, you will have to plan out everything before you make a move. The place where you want to go, space available, and means of transportation, etc. This way, you will be prepared for the challenges that you may bump into. Other things that you may consider paying attention to include the vicinity of your new location, packing services you want to hire, and things you want to get rid of.

Make A Checklist

Moving your office can be more complex than you think. This is where an office moving checklist will prove to be useful. This step is a part of the planning process. The checklist can help you get all your tasks done and ensure you don’t miss anything. Make a list of items that you need to be transported and put down all the steps that you need to follow. Using that, you will identify what needs to be done.

Communicate Well

You know your office address is going to be changed, and everybody from your employees to stakeholders needs to know about it. You will meet to share the new address with everybody – so that it doesn’t disturb the cadence of your work after you have relocated your office. This will help you avoid problems and confusion for all concerned.

Get Your Place Ready

You are going to a new office and the it needs to be ready to welcome your team. Make sure everything is set up just as you want before you take your office’s bag and baggage there. This will allow you to get started at your new location without wasting time. Things to check include furniture, lighting, washroom, air-conditioner, and most importantly, safety measures such as emergency and fire alarm.

The Bottom Line

Office relocation can be as tedious as shifting into a new house. Following the tips listed above to make sure the process sails like a boat on a calm river. Make a checklist and do what is required. Tell all your company stakeholders about your new address. Lastly, check your new place before you shift anything to avoid any disturbance later on.

Find out more about office relocation.

If you are ready to make that office relocation, but need to acquire the new office, we can help. Contact us for more information. No obligation and our services are free.

6 Differences Between Selling Commercial Real Estate And A Home

5 Differences Between Selling Commercial Real Estate And A HomeThe main difference between selling commercial real estate and residential real estate is the type and purpose of the property. This impacts the differences in selling styles.

Residential properties include single-family homes, apartments and townhouses. The owner of the property can live in the property or can rent it out space to enjoy rental income. There is typically an emotional element involved in residential real estate since it involves renting to individuals or families as their primary place of residence.

Commercial real estate refers to properties that are used for office, retail, industrial, and special purposes. There are also commercial properties used for residential purposes known as multi-family properties. The typical tenant of commercial real estate, other than multi-family, is a business or a corporation resulting in less of an emotional element.

Selling Differences

However, there are numerous differences between selling commercial real estate and residential real estate. The following comparisons provide a better idea of these differences.

1. Time to Sell

Recently, with the dirge in inventory for residential real estate, homes are selling within days of being listed, unlike selling commercial real estate which can take months to find the right investor.  There has also been a surge of residential property owners selling their homes to home buying companies such as WeAreHomeBuyers.comElement Homebuyers and similar companies that offer fast home sale and immediate cash, are commission-free and eliminate the need to upgrade the home before listing.

2. Returns-On-Investment (ROIs)

The return on investment is what helps investors determine a property’s profitability. With that said, what’s the average ROI in the US real estate market? The S&P 500 Index can answer this.

According to the Index in 2019 before the pandemic has hit the world, The US has an average return on investment of 8.6%. Of course, it depends on the type of rental property. For instance, commercial real estate’s average return is 9.5%. On the other hand, residential rental properties have an average ROI of 10.6%.

Based on the data above, investing in residential real estate properties can be more  lucrative than buying and leasing commercial properties. However, it’s essential to note that those figures don’t apply to all properties. That’s because vacancy rate, property management costs, and location are factors that also influence ROI. 

Investors trying to compare residential and commercial properties should also look at other metrics, such as cap rate and cash on cash return.

3.  Commercial Tenants Have More Money

Recently, retailers have faced increasing competition from e-commerce stores. Online stores offer products at a more affordable price and in a more convenient manner for consumers. Think about Walmart and Amazon. It’s no wonder why the retail sector hasn’t been performing at its best worldwide. Since many retail stores have shut down, the prices of commercial rentals have dropped drastically. In addition, due to the pandemic, finding qualified tenants for a commercial space can take five to six months nowadays.

However, what’s good about commercial spaces is that despite the higher vacancy rate these days, the typical tenants are businesses and corporations. When dealing with companies and large corporations, they would tend to have more financial leeway to afford higher or commercial rates of the lease. They also tend to be better tenants of the property because they maintain the property and respect its rules.

4. Triple Net Leases

The third difference is that when selling commercial real estate to potential investors is  value of triple net leases that many commercial leases include. Under a triple net lease, the tenant directly handles and pays for all property expenses. These include real estate taxes, building insurance, and maintenance expenses. These payments are on top of paying for the rental fees. In these situations, the property owner’s only concern would be mortgages payments on the property, if there are any. 

While triple net leases favor the landlord, some tenants (companies or businesses) may prefer them because they’ll have more control over maintaining the building. Not to mention that triple net leases also bring more transparency than other lease types.

5. Longer Term Lease

Commercial property leases tend to be longer term as compared to residential property leasing. Home rentals typically have a term between six to 12 months. By contrast, it’s a common practice to lease commercial properties between five to 10 years.

This is an advantage and benefit that you can point out when selling commercial properties to real estate investors. Long-term leases would mean they don’t have frequent turnover costs. They don’t have to make those repainting and repair works too frequently each time a tenant leaves and a new one comes in. It also means lower vacancy rates, which means that there wouldn’t be too many months that their property isn’t earning money for them.

An added advantage and benefit of longer-term leases is that it goes into the cash flow performance of the property. Having long-term leases means there’s money coming in more regularly from month to month. 

Take note that the fair market value of commercial properties doesn’t depend on the next-door neighbor or adjacent property pricing followed in residential properties. The value of commercial real estate is determined by the amount of money that it generates. This is discussed next.

6. How Property Values Increase

The fifth difference that you can point out when selling commercial real estate is that the value of commercial properties isn’t primarily influenced by comparable neighboring properties. The fair market value of commercial real estate is primarily determined by its revenue generation. 

The cash flow earnings of commercial property have a direct impact and tend to increase the fair market value of the property. If a commercial property is leased out to a high income-generating business, then the property will increase in value much faster than a home.

By contrast, the fair market value of a home is largely dependent on the selling price of the neighboring home that was most recently sold in the vicinity. This gives the commercial real estate investor a more active role in increasing the value of the property by choosing a tenant with higher cash flow and returns, rather than just waiting for how much the neighbor’s property would be sold.

Selling Money Makers

In selling commercial real estate, you’re really selling to the prospective investor is a future flow of income, hopefully a potential money maker. More likely than not, it’s also the primary reason why they are looking into buying such property. So, paint a clear picture about income flow in the past and how much more money it can make in the future. In short, show them the money.

If you are interested in either buying or selling commercial real estate, we can help. Contact us to find out more.

You’ve Signed the Lease, Now What?

signed the lease, now what?Every good business is bound to expand at some point when things start falling into place. At this stage, you might need to relocate to a new office space that can accommodate all the employees. You’ve signed the lease, now what? Making this move can be very intimidating, especially if it’s your first time and you’re going away from your current locality. For one, having to stop the normal operations to cater to the move and letting all your clients know can be a demanding process.

However, with the right strategy, your first step towards a new life in business shouldn’t be intimidating. Once you have everything sorted out, you can contact one of the companies specialized in this field to come and take care of all the packing and transportation. But before you start moving, our friends at Colorado Springs Movers, LLC suggests that you should sort out these tasks:

Assign a Move Leader

The first, and most important step, is to assign someone the responsibility of being in charge of oranizing and completing the move. This will entail a great deal of time and whoever is doing it should have there regular work load reduced to ensure they have the time to do a thorough job coordianting the move.

Insure Your Things

The very first thing you should look to sort out is the insurance cover of all your things, from furniture to computers to other machines used by the business. Make sure to have both moving  insurance and business insurance. It will go a long way in giving you peace of mind as you try settling into the new environment. If you have purchased your new office space, you will also need office insurance.

Take an Inventory

It is important to take the time to take a complete inventory of your furniture and equipment. This will allow you to plan the locations of the items in your new space and determine if you need to buy anything else.

Schedule Movers

Now that you’ve sorted out the factors above, you can then schedule the movers. Of course, you’ll interrupt the normal operations within your business in one way or another. You will end up having some of your employees working at the office for only for a few hours within the move week. You need tobe awayre of this and make appropriate arrangements.

The objective is to cause as little inconveniences as possible. One way of meeting this goal is by planning the relocation process during low seasons, if possible. For instance, some companies experience a reduction in business during the festive months. If yours falls under this category, then that would be the ideal time to make the move. It’s also wise to make your customers aware as early as possible so they can make plans as well.

Telecommunications & Internet

In this day and age telecommunications and Internet are critical factors to the functioning of most businesses. Check out your options. If you are going to make a change, this is a good time to do it. Make sure and check with your provider of choice how much lead time they need to ensure you are up and running on day one. The last thing you want to happen is to move and not have the connections you need to get to work.

Janitorial Service

The janitorial trash collection service is dependent on the lease agreement. Some buildings have this covered in the monthly rent while others require that every business owner takes care of their waste. It is, therefore, important that you check your lease beforehand.

Change Your Address

Your mail address is another crucial factor, and most people end up forgetting about it. As such, some of your parcels might be delivered to the wrong address for the first few days or weeks, and that’s something you’d want to avoid. Make sure you edit all your documents, social media details, and other online platforms immediately. Also, you can go the extra mile and inform your clients through your social media pages or through email and text messages.

Conclusion

Whether it’s your first time moving offices or not, there are several factors that you should always keep in mind to make this process smooth. For instance, it’s recommended that you choose a day that will cause very little inconveniences to your customers. Also, sorting out the necessary insurance covers and trash collection services will give you an easy time to settle into the new environment. Once you’ve moved everything to the new location, changing your address should be the priority.

Certified OfficeFinder SpecialistAnd if you have not found that perfect office yet and are looking for office space, coworking or traditional, we can help. Contact us today to find out about our no cost service.

4 Ways To Make Sure Your Business Has Plenty Of Working Space While Coworking

A new workstation setup can affect a employees’s performance and mood. That is why when choosing workspaces for your employees, you need to ensure that they feel comfortable in the area. The working environment needs to create a positive ambience, influencing the work performed by the employees in a good way. Having plenty of working space in the office to move freely and comfortably can also help boost the productivity of employees.  

Many businesses choose to build or rent small offices for their employees. Some companies also take advantage of using coworking space to optimize the cost of operating their businesses. Jeremy Ellis from Launchpad says that the prices of coworking space is around $600 per month since the start of 2020 despite the rise of many companies adapting to new normal and remote working practices.

Individual’s and team space within a coworking space tend to be small, so how can you ensure that the small space is maximized for your employees? Here are four ways you can increase the working space of your business: 

1. Choose The Right Furniture 

Some coworking spaces aren’t fully furnished, and you need to buy furniture for your workforce. This is an excellent opportunity for you to choose furniture pieces that are compact yet functional. It’s important that you know the total office area before buying any furniture to maximize the space.  

Aside from that, it would be best if you considered the needs of your employees when buying furniture. Do they need a desk with drawers? How much storage space does each employee need? Are you planning to have a common area for meetings? Choosing the right furniture will not only complete the working spaces for you and your employees, but these will also be critical in making the room look more significant, professional, and functional.  

2. Go Paperless 

Documents and other different papers fill up storage spaces in any office quickly. If you want to clear up significant space to store other items or convert it to an additional workspace, you should consider going paperless.  

By going paperless for business, you won’t have any more problems with consuming resources and money on documents. Not only will you be able to cut down on paper costs, but you will also eliminate the clutter in your office. That means no more filing folders and files everywhere! There will also be no need for mailing the papers or hardcopy files. The time you save by going paperless for business can give you more time to do more important things like running your business, improving your marketing strategies through an online system, and cultivating a desirable work culture. 

Aside from that, uploading to the cloud is also one of the effective ways to store private information. This is also essential to protect the confidentiality of these materials. Make sure that the passwords are given to people who are allowed to access the documents.

3. Choose The Right Layout 

The first factor that you need to consider when thinking about maximizing office space is the layout. You need to think about your office design and make sure that all of the furniture pieces that you will be using will fit into the allotted area.  

One of the best tips to use when arranging your office layout to maximize the space is to place furniture on the edges of the walls. It would be best if you aim to have an open space concentrated in one area to make the small office space look less confining. You can add an area rug in the middle area to avoid a cluttered view. 

4. Provide Enough Storage Space 

Having enough storage space is one of the best ways to keep everything in the office organized and to avoid clutter. When choosing an office storage space, you should consider the needs of your business and your employees. You must provide your employees with lockers so they can place their personal items on these cabinets. It’s also a good idea to give locks so they can keep private things safe.  

You should also choose the appropriate storage space for every item that needs to be kept. There are file cabinets for documents, and there are also cabinets or boxes to store some office supplies. To keep everything organized and reduce the clutter, it would be helpful to use labels to keep everything in the right place.  

Summary 

There are plenty of ways to maximize office space without breaking the bank. By staying organized and providing the right furniture and storage space, you create a lot of working space for your employees even when you have a small office. Aside from that, it would be best if you consider going paperless so you won’t have to stack and store paperwork that uses a large amount of space in the office. Maintaining a small office space and maximizing the area will help you reduce business costs while increasing your employees’ productivity

And if you are looking for office space, coworking or traditional, we can help. Contact us today to find out about our no cost service.

 

 

6 Things To Qualify You to Lease Office Space

6 Things To Qualify You For Renting Out Office SpaceFor some, it would seem that property owners lease office space to just anyone. Not so.  Even if the office space has been vacant for more than a year, most landlords follow a qualification system.  

Ordinarily, this process involves assessing credit statements, background verifications, tax returns, or examining references. Even so, your financial reports aren’t the only valuable documents property owners go over before deciding to lease your office space. How landlords perceive you is also critical. 

In case a property owner feels you’re an unstable tenant, you’ll most likely lose the contract. So, to gear you up on your next meeting with a landlord, here are six things that a 2020 case study by Uxbridge business park found that you may need to do to qualify for renting an office space. 

1. Furnish a Solid Business Plan

Do you have a brand-new company? Furnishing a solid business plan to the property owner is fundamental to demonstrating your business knowledge to the landlord. You can also give a background on the company budget, expected sales, competition, etc.  

It is better to include details such as when you forecast your company to be productive and break even. As a future tenant, your target is for the property owner to believe in your company the same way they will trust your tenancy.   

2. Submit Thoroughly Completed Form

In case the landlord provides you the lease application form, submit it after filling out all the data completely. It may sound straightforward, but often some company owners neglect to complete it. If you want to avoid leaving a wrong impression, submit a thoroughly completed  form to guarantee your application is on top of the file.  

3. Enlist a Credible Tenant Advisor

Enlisting the services of a reputable tenant representative (like the ones we have at OfficeFinder) and/or a lawyer can prove to property owners you’re serious about renting an office space. Having professional representatives to help you deal with landlords will ensure you’ll be able to talk about every crucial detail in your contract and avoid costly mistakes.

What’s more, they can help you shorten the negotiations with the property owner and avoid lengthy proceedings. Also, tenant advisors are familiar with the real estate market since they do this day in and day out.

4. Provide Statements of Assets & Liabilities

For property owners to see your company as a qualified tenant, provide your bank statement showing your assets and liabilities. This statement will show the landlord if your company has adequate assets or cash to pay off your lease after factoring in your debts. 

Furthermore, property owners want to see if your assets and cash can cover your entire lease in case of a business failure. Handing over an impressive statement of assets and liabilities will ensure your deal will end positively.  

5. Display Stable Credit History

It’s common for companies to experience late payments on loans or credit card statements. In case this happens to you, this is the time to change and clean your habits. For property owners see you as a steady tenant, you need to demonstrate you’re financially stable. And as proof, this will require exhibiting strong credit and financials.  

If you’re planning to apply for any loans, begin with the application already so you can show sufficient cash flow to cover your lease. You can also provide these other standard requirements: balance sheets, tax returns, cash flow documents, and other notices from your bank indicating your financials.

6. Be Ready to Relocate Soon

Finally, if the space you’re eyeing is in a popular and hot office location, see to it you can relocate immediately. Most often, landlords lease prominent locations fast. In case you chance upon an area you feel is right for you, focus on securing the place to prevent another company from renting it.    

When there are one or more groups wanting to secure a specific office space, landlords typically favour the able, ready, and eager to move party quickly. Remember, property owners avoid wasting time on clients who are not aware of their requirements.  It’s best to know your office space needs, electrical requirements, and zoning needs so you’ll have an idea if the location is a good fit for your company.  

Final Thoughts

As an entrepreneur, one of the significant decisions you have to make is whether to purchase a property or rent an office space for your business. If you’re starting your firm and working on a limited budget, it might be in your best financial interest to lease office space.  

Please note that it’s essential for potential clients to know you have an office they can physically visit. Showing customers you possess an office space is a huge step in establishing your company. Moreover, demonstrating to property owners, you’re ready to rent will help you get that office space faster.  

If you need help finding office space to lease, whether conventional or flexible space, we can help. Contact us today for a no-obligation discussion on how one of our tenant representatives can help.

5 Tips For When Negotiating for an Office Space Rental

5 Tips For When Negotiating an office space rentalOffice Space Rental is one of the significant expenditures of a rising company. It makes sense then that negotiating for an acceptable lease is a challenging yet necessary process one has to take. Take note that there are several approaches you can adopt to obtain the best deal without undermining your finances or slowing down your business.  

Regardless if you hired a tenant broker, do your research on the space you want to rent. Are there other companies eyeing the property? How long has the place been empty? These are aspects that can significantly impact your negotiation process. 

And since there’s no such thing as a standard lease, you will find below five tips when negotiating the office space rental you want.  

1. Settle Length of Lease Period (Term)

Property owners or landlords are usually amenable to grant long-term leases. In a way, this condition can be beneficial; however, it’s normal for the company to adjust. When this change happens, you’ll find yourself stuck in a lease with either a sizeable or small space for your business.  

As a tenant, aim to negotiate a short-term contract with extension options. For instance, seek a two-year deal with a two-year extension option instead of a four-year agreement.  

2. Manage Rent Hikes

When it comes to office spaces, it’s unusual to find fixed rent with long-term contracts. Typically, property owners expect yearly increases based on rate hikes found in the Consumer Price Index (CPI). 

If the landlord requires rent hikes, see if you can arrange for a fixed CPI rent increase. For example, your monthly rent is $7,000 a month. Your second year will increase to $7,200 per month, then $7,400 a month on your third year.  

3. Explore Hiring a Tenant Broker

Yes, it’s common to come across stubborn landlords with unreasonable requests. If you’re in this tight situation, you may want to look for alternative office space to rent.  

A credible tenant broker, aka tenant representative, can help your company search for available spaces or industrial developments like the Gloucester business park. These professionals can give you a background and help you understand the dynamics of the market. Moreover, they can help you discover office spaces that satisfy your standards, set up viewings, and go with you to see these properties.  

Tenant brokers likewise help their clients draft offer letters and deal with property owners so you can obtain a sensible lease for your company. 

4. Discuss Office Space Improvements and Repairs

Meanwhile, please note that some contracts will include clauses that state tenants must reinstate premises to their primary condition. 

See if you can modify the provision to say that you will return the office space in the same state at the start of your contract as a tenant. This condition excludes devastation by fire that isn’t the responsibility of the tenant and usual wear and tear.  

Furthermore, if the property requires upgrading or enhancements, who is responsible for these repairs? Suppose you want fresh carpets, new paint colours, or re-arrange the layout of the office area. Take note that many leases state that tenants can only modify the property with the property owner’s consent.  

Request for a provision that allows you to render alterations with the landlord’s permission and that consent will not be unduly conditioned, hampered, or delayed.   

5. Be on the Lookout with These Provisions

Lastly, be on the lookout for these one-sided clauses that strongly favours property owners:

  • The property owner restricts potential assignment or subletting 
  • The property owner expects the tenant to settle tax escalations stemming from the property sale 
  • The property owner has the right to rescind the contract at the landlord’s convenience 
  • The property owner rents the space ‘as is’ to waive compliance with the Americans with Disabilities Act or any environmental laws.   
  • The property owner demands a personal guarantee of the principal shareholders of the business 
  • The property owner transfers to the tenant additional operating expenses such as repairs, insurance fees, and building taxes.

Final Thoughts

Keep in mind when negotiating an office space rental, it’s best you carry a definite understanding of what you’re willing to consider and what you can propose. It is also best to have a tenant representative working on your behalf. Always document everything in writing when clarifying lease details that you don’t understand. While this will make the process longer, it will provide you legal protection in cases some of your negotiated terms get excluded in your contract. 

It’s essential to study your lease carefully. The contract can possibly contain numerous details you’ll not understand. When faced with this kind of scenario, highlight each unclear point, and discuss it with your tenant broker or the property owner.  

Certified OfficeFinder SpecialistOur tenant representatives at OfficeFinder do this day in and day out for their clients. Contact us so we can connect you with one in your area. There is no cost for their services and no obligation to request info.

 

What To Know When Renting Office Space Following The Pandemic

What To Know When Renting Office Space Following The PandemicMaking decisions about renting office space is more challenging because of the impact of coronavirus or COVID-19 pandemic. Many people are asking how the current health situation affects office leasing and businesses at large. Is work-from-home the latest trend? Or will the new normal open more opportunities for commercial property owners? 

In this article, you’ll learn the essential things about renting office space following the pandemic.  

Health And Safety Protocols Compliance 

In the ‘new normal,’ property owners are mandated by governments to comply with all health and safety protocols set in place to protect the public. Future tenants are also advised to do the same.  

In order to find tenants, office operators are taking this seriously. As an example, our friends who have Offices in Manbre Wharf, have fully implemented health and safety protocols to ensure that tenants are safeguarded from the threats of COVID-19. Everywhere else in the world is having to do the same. 

So, what are the general health and safety protocols when it comes to renting offices? 

Here are the details of the scope of health and safety protocols involving renting office space and other commercial establishments that you should know before renting office space: 

  • Risk Assessment: Assessment of environmental, health, and safety risks, which tackles the responsibility of landlords and property owners when creating rental policies and agreements. 
  • Management And Reporting Of Cases: It tackles the responsibility of landlords and property owners to report any case of COVID-19 during the period of lease to concerning health and government authorities. 
  • Implementation Of Guidelines: Once health and safety guidelines are fully explained to tenants, landlords and property owners should do all means to monitor full compliance. On the other hand, tenants, particularly office or business owners, must make their employees aware of the policy.  

Social Distancing In Offices 

Before the strike of COVID-19, many office layouts and designs have open plans, which aimed to promote good collaboration, better communication, teamwork, and cost-savings. However, the current pandemic forces everyone to maintain physical distancing or what is called “social distancing” to keep people safe from one another. 

The US Centers for Disease Control and Prevention (CDC) suggests that people practice social distancing by maintaining at least a six feet distance between individuals. Because coronavirus is highly contagious, employee desks must be spaced wide apart, and possibly each employee should have an individual cubicle to avoid getting infected.  

Renting Additional Office Spaces 

It is now impossible to fit employees in offices as pre-COVID-19 having the same number of people in the same square footage. Business owners either need to set alternating work schedules for their employees by creating an Agile Workplace or lease additional office space, which means additional overhead cost. 

Here are some benefits of renting additional office spaces following the pandemic: 

  • Be able to resume peak business operations to attain higher productivity and revenue as compared to last year. 
  • Help businesses recover from low production and sales because of temporary closure or sluggish business operations during the peak of COVID-19.  
  • During the new normal, renting extra office spaces is a better option than compromising the health of your employees and facing legal consequences due to negligence. 

Corporate Culture Adjustments 

Workplace culture greatly transcends in your office. Corporate culture is highly reflected by the office layout and structure because collaboration, open communication, and promoting productivity are readily seen through open plans. However, there must be some adjustments following the pandemic, which means less worker density, fewer meetings, and less social get-togethers.  

When renting a new office space, you may need to also make some adjustments to your previously planned corporate culture. Here are the challenges you might face when adjusting to corporate culture when renting office space following the pandemic crisis: 

  • Recruitment: It will be a challenge to attract new talents, but the virtual world can decrease the burden of hiring new employees. Final face-to-face interviews are still possible in office buildings following the health protocols, such as installing hard, transparent plastic dividers between the interviewers and the job applicants. 
  • Office Design: Designing and modifying existing workspaces can be difficult. Supporting the established culture and following the new health and safety protocols poses a challenge to everyone. For this reason, your architect and interior designer should work together to come up with the best solution designed for your business needs. 
  • Co-Working: While co-working has been a trend and major contributory factor to the office market recovery, the new health protocols that accompany COVID-19 may have an adverse effect on co-working businesses. Co-working companies may diminish following the pandemic, so venturing into this work setting is not advised. 

Conclusion 

Renting office spaces nowadays can be more challenging than ever. All future tenants must comply with existing health protocols, like ensuring social distancing and wearing of personal protective equipment, like face masks. Business owners would likely need to rent additional office spaces and make the necessary corporate culture adjustments to be productive and realize business goals. Let us know if we can help you find new office space. Contact us today!