Tip #1: Know What’s Included in Your Lease
Business leasing situations tend to be more complex than residential ones, which can result in many people feeling overwhelmed by the language and length of the document – and not reading their office space leases thoroughly.
Commercial and business leases generally contain many clauses and details that could drastically affect your overhead costs, and it is imperative that you know what you are agreeing to. You should be aware of whether the landlord or tenant (that’s you) is responsible for upkeep of the building; whether the building is capable and ready for any utilities you need (internet, phones, etc.) and, if not, who will pay for the installation; and whether utility costs are included in the rent, or split among various tenants. The list goes on.
A general thought to keep in mind is that when leasing office space, the commercial tenant tends to be more responsible for the building than the typical residential tenant. In other words, if you don’t read carefully, you might find yourself responsible for updating all of the wiring in your rental space, for example.
Tip #2: Look for Ways to Negotiate
This doesn’t mean you need to play hardball with the landlord, or drive him to distraction with constant counter-offers. However, if there are a few details keeping the office space lease from being ideal for you, by all means ask about them.
Perhaps the landlord is willing to throw in parking in exchange for you being willing to snowplow. Or, maybe you’re expecting your business to grow in the future, and you can write in a clause that gives you first dibs on the empty floor beneath yours. Be reasonable and respectful, and approach the negotiation with solid explanations for why you want what you do, and you might find yourself pleasantly surprised.
Tip #3: Plan Ahead
If you’ve got an established business and you’re simply in the process of moving to a new location, this tip will be less relevant to you. However, those who are just starting up brand-new businesses have a more complex task ahead. The key to getting a great deal on an office space lease is to take steps to ensure that the space you get will still be the space you want for the length of the contract. This requires some degree of estimation and foresight. Ask yourself:
All kinds of factors can affect your future needs, and it won’t be easy to try and plan ahead for them. So, you need to simply do your best to sign a lease that fits your expectations. Perhaps you’re fairly confident that your business won’t need any more space for at least two years; if that’s the case, try to negotiate a five-year lease down to a two-year lease in case you need to move after that.
The key to getting a great office space lease is to be aware of the details of the transaction, and to plan carefully for what you need versus what you’re willing to spend, all while considering what’s actually available. The odds of finding the perfect space at the perfect rate with the perfect terms are fairly slim, but with a little research and effort you can make almost any office space rental work for you – and for your business.
A Lawyer Can Help With Your Commercial or Office Space Lease
Before you sign a lease agreement, it is a good idea to get the help of a qualified real estate attorney in your area. A commercial real estate lawyer can look over your lease for you to make sure that there are no unfavorable or harmful clauses in your lease, and that your rights as a tenant are fully protected by the lease terms.