5 Ways to Avoid Signing the Wrong Office Lease
5 Ways to Avoid
Signing the Wrong Office Lease
When corporate 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:
- Safety
- Location
- Recruiting
- Expansion
- Layout of the space
- Amenities
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 corporate tenants either use a 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.
DISCLAIMER: This blog/article has been curated from an alternate source and is designed for informational purposes to highlight the commercial real estate market. It solely represents the opinion of the specific blogger/author and does not necessarily represent the opinion of Pacific Coast Commercial.
All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner of will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.
Keywords: San Diego Commercial Real Estate For Sale, Commercial Property In San Diego, Commercial Real Estate In San Diego, San Diego Investment Real Estate, Commercial Property Management In San Diego, San Diego Commercial Property Management, Commercial Property Management San Diego, Managed Commercial Property San Diego, Commercial Property For Sale San Diego, San Diego Commercial Real Estate Leasing, Top Real Estate Agents in San Diego, Commercial Property in San Diego, Property Management Company San Diego, Real Estate Agent in San Diego, San Diego Commercial Real Estate
Comments
Post a Comment