6 Tenant Tips for Leasing Commercial Space
Whether you are a startup preparing to lease office space for the first time or you are expending your business to a second location, you need to make sure you get the right space for the best lease rate. These tips will help you achieve your goals and ensure that the result of your new lease is the best for your company. 1. Don't do this Alone You're an expert at what you are doing. Clients come to you for your knowledge and expertise because they cannot produce the products or do the services that you provide. Consider real estate the same way. You are not an expert in it, but tenants’ representatives are. With one on your side giving you knowledgeable advice and having your interest in mind, it’s a sure way for you to get the best lease terms possible.
2. Start as Early Don’t underestimate how long it'll take to find the proper property and negotiate a lease. Start looking at least 6 months before you need to move, so you will not feel the pressure of a time crunch and can be ready to carefully weigh your options. 3. Run All the Numbers When you decided whether or not you can afford to lease a specific space or are comparing rates from one space to another, don't just look at lease rate. You need to take into consideration the Operating Costs and anything that may be listed under "Additional Rent" within the lease agreement. Also, review the lease terms for an Escalation Clause. Your rent will go up if the market dictates increases or if another trigger event occurs. 4. Have a Vision of the future
You know what your long-term goals and focuses are. When you're considering a new space, think of what you will need in the near future. You don’t want to outgrow your space to soon or worse find yourself with unused square footage.
5. Who are the Neighbors In some industries, you don’t want a competitor within the same building. Check the tenant listing and see if the landlord will put in a non-compete clause which will make sure that no competing company is allowed to lease space in the same building. 6. Learn the Lingo Even if you have a tenant rep by your side, it’s important to understand the terminology in your lease and also the lingo used at the negotiation table. Be familiar with the different names of the various types of leases and always ask questions if someone uses a term that you do not know.
Source: Don Catalano REoptimizer® Blog