5 Ways to Avoid Signing the Wrong Office Lease
When many tenants do not do their due diligence, they end up signing the wrong office lease. This happens so often that a solution is highly needed. However, there are many reasons why companies sign wrong office lease. Hence, companies must pay attention to the little often-overlooked details before signing office lease. Here are five ways to avoid signing the wrong office lease.
1. Don’t Make Office Decision Solely On Price
Price should not the only factor that you consider when you make your leasing decision. Besides the rent fee, there are other things to consider before making your office decision. Here is a list you should consider:
Layout of the space
2. Understand All The Cost Associated With Your Office Space
Before signing a new office lease, it is important that you are not overly fixated on the rent that you don’t see other expenses that come with renting the office space. Here are a few office space expenses that you should know:
HVAC Costs. It is essential to know if your landlord will be covering the HVAC costs if you will be running your operations after hours.
Operating Expense Pass Throughs. Again, it is essential to know your base year if you are signing a full-service lease. In addition, check through the building’s historical operating costs, and evaluate how they have soared over the years. This will help you to know how much will be passed to you when the expenses are above your base year.
Furniture. You need to speak with a furniture vendor to know the cost of getting new furniture for the new office (if you need new ones).
IT/Communication Costs. Before signing the lease, find out how much it is going to cost you to set up your IT system—internet, intranet, phone systems, etc.
Insurance. How much will it cost you to get an insurance policy that matches up with your new business needs?
3. Ask Enough Landlord Incentives
Most corporate tenants do not know they can ask their potential landlord many incentives before signing a lease. Here is a list of incentives that you can ask your landlord:
Free rent. This depends on the length of the term.
Moving allowance. You can ask your landlord to factor in the cost of a physical move.
Tenant improvement allowance. It is essential to know what the tenant improvement allowance will cover. You can negotiate for a more comprehensive allowance that will allow you to have an office space that is fit for your business.
4. Do Not Rush Through The Process.
Many corporate tenants do not give themselves enough time to fully go through the office leasing process. In other words, they didn’t give themselves sufficient time to explore the office market, and find comparable alternatives. This information could be useful as a leverage when negotiating the corporate lease. Depending on your company size, future business needs and internal goals, you may have to give yourself at least 3 to 6 months to go through the office leasing process.
5. Get a Broker.
Some tenants either use the wrong broker or do not use one at all. This can be a costly error for any company. Securing office lease can take between 2 months to 2 years; this can cause a huge time toll on a company’s productive time. Hence, it is important to choose a tenant rep broker who will handle most of the lease process.
Article By: iOptimizeRealty
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