{"id":4258,"date":"2021-01-08T05:31:39","date_gmt":"2021-01-08T13:31:39","guid":{"rendered":"https:\/\/www.officefinder.com\/officeblog\/?p=4258"},"modified":"2021-01-11T08:24:20","modified_gmt":"2021-01-11T16:24:20","slug":"5-tips-negotiating-office-space-rental","status":"publish","type":"post","link":"https:\/\/www.officefinder.com\/officeblog\/5-tips-negotiating-office-space-rental\/","title":{"rendered":"5 Tips For When Negotiating for an Office Space Rental"},"content":{"rendered":"

\"5Office 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.\u00a0\u00a0<\/span><\/p>\n

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.\u00a0<\/span><\/p>\n

And since there\u2019s no such thing as a standard lease, you will find below five tips when negotiating the office space rental you want.\u00a0\u00a0<\/span><\/p>\n

1. Settle Length of Lease Period (Term)
\n<\/b><\/h3>\n

Property owners or landlords are usually amenable to grant long-term leases. In a way, this condition can be beneficial; however, it\u2019s normal for the company to adjust. When this change happens, you\u2019ll find yourself stuck in a lease with either a sizeable or small space for your business.\u00a0\u00a0<\/span><\/p>\n

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.\u00a0\u00a0<\/span><\/p>\n

2. Manage Rent Hikes<\/b><\/h3>\n

When it comes to office spaces, it\u2019s unusual to find fixed rent with long-term contracts. Typically, property owners expect yearly increases based on rate hikes found in the <\/span>Consumer Price Index<\/span><\/a> (CPI).\u00a0<\/span><\/p>\n

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.\u00a0\u00a0<\/span><\/p>\n

3. Explore Hiring a Tenant Broker<\/b><\/h3>\n

Yes, it\u2019s common to come across stubborn landlords with unreasonable requests. If you\u2019re in this tight situation, you may want to look for alternative office space to rent.\u00a0\u00a0<\/span><\/p>\n

A credible tenant broker, aka tenant representative<\/a>, can help your company search for available spaces or industrial developments like the <\/span>Gloucester business park<\/span><\/a>. 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.\u00a0\u00a0<\/span><\/p>\n

Tenant brokers likewise help their clients draft offer letters and deal with property owners so you can obtain a sensible lease for your company.\u00a0<\/span><\/p>\n

4. Discuss Office Space Improvements and Repairs<\/b><\/h3>\n

Meanwhile, please note that some contracts will include clauses that state tenants must reinstate premises to their primary condition.\u00a0<\/span><\/p>\n

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\u2019t the responsibility of the tenant and usual wear and tear.\u00a0\u00a0<\/span><\/p>\n

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 <\/span>layout of the office area<\/span><\/a>. Take note that many leases state that tenants can only modify the property with the property owner\u2019s consent.\u00a0\u00a0<\/span><\/p>\n

Request for a provision that allows you to render alterations with the landlord\u2019s permission and that consent will not be unduly conditioned, hampered, or delayed.\u00a0\u00a0\u00a0<\/span><\/p>\n

5. Be on the Lookout with These Provisions<\/b><\/h3>\n

Lastly, be on the lookout for these one-sided clauses that strongly favours property owners:<\/span><\/p>\n