Whether you're getting ready to move to a larger office space or planning to add a second, third, or fourth location to your portfolio, there is a lot to consider when it comes to commercial real estate leasing. Keep the following tips in mind as you move through the process to ensure the best outcome and make the process as smooth as possible:
1. Start Early
The search and negotiation process for commercial real estate is much longer and more arduous than residential real estate. Ideally, you should begin thinking about your next move a year before your current lease is due to ensure that you have plenty of time to locate the perfect space and negotiate a fair deal.
2. Have a Game Plan
Before you search, consider your corporate strategy and how your office space will play a role in furthering it. What matters most in commercial real estate will depend largely on your goals.
3. Call in a Pro
A commercial tenant representative should be thought of as a must-have. A knowledgeable pro can help you discover space you otherwise would never know existed and give you an edge at the negotiating table. The costs of hiring one are covered by your landlord, so their help won’t add costs to the search process.
4. Do Your Homework
Knowing the market is essential to getting a fair deal. You should have a clear picture of what other companies are paying for spaces similar to the ones you are considering and what kinds of terms they have. Also, dig into the reputation and history of the landlord and make sure you know who your neighbors will be in any building.
5. Make It a Team Effort
Each member of your leadership team brings a different perspective to the search process. By involving upper management, you can ensure that the space you choose will provide the ideal working environment for your entire team. Involve every employee with a survey to establish what perks and amenities matter most to everyone.
6. Separate Needs From Wants
When you reach the negotiation phase, you need to be willing to give in order to get. That means that you must prioritize what you absolutely must have from your new office space over what would be beneficial. Doing so will help you effectively compromise.
7. Don't Sacrifice Today for What Might Be Tomorrow
While it's important to choose space that will continue to meet your needs in the future, don't be overly ambitious. Realistically assess your potential for future growth and don't over rent square footage. After all, you don't want to end up paying for tons of empty space that may never be occupied.
8. Never Sign the First Time
Commercial real estate lease agreements are usually written to favor the landlord at the expense of tenants, and it's assumed that after you are given the contract, you will come back to the landlord with requested changes. Simply agreeing to the original version can mean overpaying or leaving something beneficial on the table.
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