Whether you're a startup getting ready to lease office space for the first time or ready to branch out and lease a second location to expand your business, you want to make sure you get the best deal and the right space for your needs. Following these tips will help you accomplish your goals and make sure that the outcome of your new lease is the best it can be for your company:
1. Don't Go It Alone
You're an expert at what you do. Clients come to you for your knowledge and expertise because they can't produce the products or do the services that you provide on their own. Think about real estate the same way. You're not an expert in it, but tenant brokers are. Having one on your side will give you the benefit of knowledgeable advice that can help you make the best leasing decision and get a fair deal.
2. Start as Early as You Can
Many business owners underestimate how long it will take to find the right property and negotiate a lease. Make sure you start looking at least 6 months before you need to move in, so you won't feel the pressure of a time crunch and will be able to carefully way your options.
3. Crunch All of the Numbers
When you're determining whether or not you can afford to lease a particular space or are comparing rates from one space to another, don't just look at the cost of rent. Make sure to take into consideration the Common Area Maintenance and anything that might be listed under "Additional Rent" in the lease agreement. Also, double check the lease terms to see if the landlord has included an Escalation Clause, which would allow for your rent to be raised if the Consumer Price Index increases or if another trigger event occurs.
4. Have a Clear Vision of the Future
You don't have a crystal ball to forecast the future of your company, but you do know what your long-term goals and focuses are. When you're considering a space, consider not just your immediate needs but what you might require in the future. The last thing that you want is to outgrow your space or end up with unused square footage long before your lease is up.
5. Find Out Who the Neighbors Are
In some industries, you don't want a competitor just a few doors down in the same building. If having a competitor in close proximity to you could be a negative, check the tenant listing and see if the landlord will put in a non-compete clause that will ensure that no competing company is allowed to move in after you have.
6. Learn the Lingo
Even if you have a tenant rep broker by your side, you want to be able to understand the terminology in your lease and the jargon being used at the negotiating table yourself. Brush up on the names of the different types of leases and always ask questions if someone uses a term that you're not familiar with.
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