Tag Archives: office leasing process

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

Why Use a Broker to Find Your New Office Space?

Any business-minded individual is looking for ways they can save money on their operational costs. Why give a cut to a commercial real estate broker when you know what you want?  You think it will cost you money for their services. You are mistaken. An experienced broker will get you many times the value of their commission back to you with the value of your new space.

Transactional Experience

While a business owner may go through a number of real estate closings over the years, an experienced broker has gone through exponentially more. It is their day-to-day business. Even the simplest commercial office space transaction can be a logistical struggle. A transaction that gets you smoothly into your ideal space requires extensive experience and knowledge that few possess. You need a knowledgeable broker to get you through the negotiations.

The Power of Information

Even after months of research, it would be impossible for a business owner to know the ins-and-outs of all the property that could suit them. Where will your business thrive in your city? Do you need “green” or LEED certified space? Can a space allow you to keep up with modern trends of workplace efficiency? Can you negotiate the best rate for the best space? These are questions you need to ask. The right broker will have the right answers.

The Time Cost

What is your time worth? Are you better off working on your business or searching for the right office space? The office leasing process can be very time consuming. Not only do you need to find the space you are interested in occupying, but then you need to gain an understanding of the market and landlords to negotiate a good deal.

Building Business Connections and Relationships

Any broker worth his salt welcomes a well-informed client. Instead of running into a middleman, you’ve gained a valuable new business connection. A driven agent stays in touch with his clients to ensure that their transition into their new space is what they hoped for and will continue to be what they hoped for.

If you’re ever looking to expand your business or want to make a good move the next time you’re relocating, you already have a valuable ally in your corner. They will be ready and enthusiastic to work with you on getting the highest level of success for your business.

Certified OfficeFinder SpecialistWhen looking for office space, it can be tempting to go it alone, but considering the costs, it would be a mistake. Contact us to make a connection With a Certified OfficeFinder Specialist and reach success.