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Last Updated on May 16, 2023 by Work In My Pajamas
Whether you are planning to relocate all or part of your operations, are keen on opening more business branches, or selecting your first office, there is a lot to be considered when leasing commercial spaces. While commercial leases can be lengthy and complex, you can save yourself a lot of frustration by knowing how best to handle the entire process. To help you out, here are seven tips for leasing commercial office space.
In This Post:
1. Engage a Commercial Real Estate Broker
Regardless of whether you are a seasoned entrepreneur or a new startup, prioritize hiring the services of a commercial real estate broker like the Jeff Tabor Group to help you better manage the lease process. By having an expert analyze every detail in a lease, you can avoid making costly mistakes.
2. Know Your Needs
Always know the ideal conditions that will suit your business operations before you start hunting for a commercial space. Start by creating a list of all elements you consider essential, such as:
- The size or square footage required
- Office location advantages
- Level of privacy expected
- The overall security
- Amenities your teams will need
- The neighborhood and how it influences your company’s identity
3. Do Your Due Diligence
Research is essential in the commercial lease process, since a critical part of identifying the best office space lies in knowing the overall condition of the local real estate industry and the current market rates. Go the extra mile and investigate the neighborhood to know its safety, business-friendliness, and reputation among the business community. Most importantly, assess whether there are competitors in the same building or nearby and how this could impact your operations.
4. Consider Your Out Clause
While you should never sign a lease agreement with the intent of breaking it, always be ready to handle the worst. Protect yourself by having an out clause to cover your back if you are uncomfortable or happy with how things turn out.
5. Negotiate for Removal of Unfavorable Terms
Most commercial lease agreements have many unfavorable terms that you need to ensure are removed before signing those dotted lines. A rule of thumb is to avoid leaving anything out for future negotiations or the common lie that the landlord cannot adjust the lease agreement since every other tenant has agreed to it.
6. Do a Thorough Cost Breakdown
Before you agree to a lease agreement, do a thorough cost breakdown to determine the charges you will incur as a tenant beyond your base rent. Ensure that the payments you will be making are affordable and suit your current financial situation.
7. Be Extra Keen During Your Tours
As you tour an office, it counts to be extra keen about the available space, building condition, and general surroundings. Assess the smallest details such as the available parking space, elevator use, security systems, and utilities provided, as these will make all the difference to your employees and customers.
Endnote
Finding the perfect commercial space is never a walk in the park, and these tips will save you from making mistakes during this critical process.
Thanks for these tips on leasing office space. It makes sense that you would want to know your needs. I think that would help make sure you could get the right office space to make sure your business could function properly.