Tag Archives: office leasing

What to Consider Before You Lease Office Space

office space for leaseMaking a bad decision when it comes to choosing office space can have negative repercussions for any business, including loss of customers and a big impact on your bottom line. As many landlords prefer three to five year leases, it’s essential to know what you’re looking for before you lease office space and sign on the dotted line. Find the right office space, make the best decision for your company and start making money.

Use a Tenant Representative to Lease Office Space

Choosing the wrong broker, or not using one at all, can add up to a very expensive error. Tenant representation is essential, but you don’t want to rely on a broker with a conflict of interest, such as one who represents both the tenant and the landlord. Use one who strictly represents you as the tenant, which ensures that the broker remains true to their fiduciary duty. You wouldn’t use an attorney to represent bother parties, and the same holds true when signing an office lease.

As a business’s office space is usually one of its biggest expenses, having the right broker on your side can often help to reduce the company’s bottom line and also help protect its interests in a number of other ways.

Determining Priorities

Before signing an office lease, have you considered all of the short and long-term priorities of the business? Ideally, you should have an office space planner conduct a space program to determine your size needs including aspects like floor load capacity in order to support heavy equipment. Your tenant rep can help you with finding one and very often it will not cost you anything. Landlords provide this as an incentive to get you into their building. You may also want to find a space to lease within a larger complex that allows for future growth.

Understand Associated Costs

In addition to monthly rent, make sure you understand all costs involved, such as utility costs, common area maintenance fees, Internet and telephone installation costs and possible extra HVAC (heating, ventilation, and air-conditioning) costs for running your business after hours.

Both you and your broker should inspect all documents thoroughly as they are designed to benefit the landlord and make them money, not you.

Take Your Time

Not giving yourself enough time to make the decision and to go through the entire process of securing an office lease is one of the biggest mistakes office tenants make. You need time to explore the market with your tenant rep, tour facilities and interview landlords. Most tenants tend to significantly underestimate the time it takes to complete each stage, whether renewing, moving or starting fresh. Depending on your space needs and how complex your technology, the office leasing process may take 6 to 12 months or longer just to find and negotiate a deal.

Taking these considerations to heart will help you have a positive outcome when you lease office space.

Related: Top 15 mistakes Tenants make When They Lease Office Space

By: James Osgood
OfficeFinder

Biggest Mistakes Office Tenants Make When Looking to Rent Office Space

Over the years we have posted lots of information about the mistakes that office tenants most frequently make. A big one is thinking that the landlord’s listing agent will look out for their best interest when they’re looking for office space for rent or lease. They won’t. They have a responsibility to the office space manager or landlord to get them the best deal possible. They have a contract that says so. If a listing agent tells you otherwise, beware.

Price is not the only issue you need to be concerned about. The terms of the lease can have a huge impact on your cost and ability to avoid mistakes that will end up biting you in the rear.

So where does that leave the office space tenant looking for office space? Set up for another big mistake – not having your own agent who knows the market and the business as your office tenant representative. In the US and Canada it won’t cost you anything. In fact, it will save you money by ensuring you get the best deal possible and avoid costly mistakes. A good tenant rep, like the ones at OfficeFinder,  represents office tenants every day. They  negotiate leases for a living, while chances are you will only have to do so a half-dozen times in your business career. Who do you think will do a better job?

What we have seen over the past 10 years is a transition from business owners and managers who recognize the value of a good office tenant rep to many that think they can do it themselves and are suspect of real estate agents. This has come about from the plethora of information and listing sites on the Internet and too many unqualified agents claiming to be good office tenant reps.

What you see on the Internet related to available space is only the tip of the iceberg and much of it is simply out of date or wrong. There is no way to really determine the deal points of recent office rentals or leases from information on the Internet. The only way to really get good information is from someone who is in the business day-to-day.

So, if you want to rent office space and get the best deal possible, avoid costly mistakes and have a hassle free experience. Engage the services of a qualified tenant Rep.

More on Office Leasing | More on Office Rental

The 3 Biggest Mistakes Tenants Make (SlideShare)