As a company develops, a bigger office is often needed. Office space is one of the biggest expenses that a company can incur. Hence, it is important that business owners and corporate clients pay attention to these office lease tips, so they can get the best deals.
1. Have a Tenant Rep Broker on Your Side
Before you begin the process of finding your office space, you need to build a team. Having a tenant rep broker on your team is the best decision you can take.
Tenant rep brokers can easily spot good spaces as well as potentials for pitfall because they are professionals in the commercial real estate industry. In addition, they can help you spot hidden clauses that can affect your business. Having a tenant rep broker is essential if you want to avoid the stress of sourcing, negotiating and signing a commercial office deal.
2. Market Survey
To get a good office deal, you need to get a good office.
Location is an essential factor that determines if a commercial space will be ideal for your business. The search phase usually begins with a market survey. If you are using a broker, your broker will help you find the best available options in the market based on your business needs. Once they come up with a shortlist of ideal properties, you should join your broker in touring the space.
The tour helps you to get familiar with the property and check the amenities. It is important to note that because an office space looks perfect doesn’t mean it is the best for your business (at that time). This is why you should work with a broker who will give you an idea of how efficient space will be.
3. Request for Proposal
After the touring stage, you will generally have narrowed your focus to just a few options. Once you have selected a shortlist of properties, your broker will request proposals from each landlord, then provide these to you for review.
4. Negotiation
Office space is one of the largest expenses a company can incur, hence, it is important to negotiate the best deal for your company. A good negotiation can help your company save enough cash to hire new employees and get more assets. It is important to note that your ability to negotiate is largely based on the leverage you have. A good broker will help you identify the leverages you have, as well as negotiate your deal from initial proposals to an executed lease.
In addition, your broker will facilitate communication between your company, lawyers and the landlord throughout the process.
5. Sign the Lease
Once an agreement has been reached with the landlord, it is time to sign the lease. Working with a tenant rep broker will help you reach a favorable agreement quicker. After all the clauses are carefully examined, sign the lease and proceed with moving in and occupying your space. Your broker may stay in touch with you to ensure you have an ideal understanding of your lease, and also help in case you want to renew or terminate your lease before the expiration date.
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