Do you want to get an office space for lease?
As your business scales, it’s important to lease an office to facilitate your day-to-day operations. But, leasing office space can be challenging. Many leases have hidden costs and restrictions that can make your office rental very expensive, hindering the growth of your business.
Luckily, you can be in the position of strength to secure your rights as a tenant by understanding the basics of leasing a commercial space. Here’s what you need to know before signing a lease contract agreement for your office space.
1. Determine Your Budget
Leasing a space is expensive, making money one of the most important factors to consider when looking for an office space for rent. If you’re starting up, you may make the mistake of splurging your first office space considering the generous pool of investor funds.
But, this can put you out of business very first. This is why you need to set a realistic budget with minimum and maximum allocations. Ensure you check out the terms concerning rental fees in the lease agreement.
Most leases will come with an annual percentage rent increase built in, adding up to your rates. To keep your rental rates from skyrocketing at the end of your first multi-year term, you can ask the landlord for an option to renew your lease at the same predefined increase rate. It helps reduce your rental expenses.
Apart from office space quotes for rent, you should also consider adding other lease expenses like local permits, utilities, and more to your budget. As too many expenses can stunt the growth of your business, you should make sure to cut off unimportant costs when planning your budget.
2. Choose the Best Location
The location of your office space is the heart, soul, and, life of your business. Depending on your trade, you should lease a commercial space with high foot traffic. Renting a space near schools, government spaces, or crowded residential areas ensures you have a market for your products or services.
What’s more, your location should be accessible not only to you but also to your staff and customers. Check out the amenities near the office space you want to lease. The presence of a major highway, functional public transport, and financial institutions near your office rental make your business more reachable.
Also ensure the building where you rent space is safe and isn’t near areas that attract unsavory characters, as this may scare away potential clients and talents. Another factor to consider for the location of your office space rental is the availability of secure parking.
3. Consider the Length of the Lease
Are you leasing your office space short-term or long-term?
You should take into account your length of occupancy. You can sign a long-term office lease if you know where your business is headed. It offers stability allowing you to come up with proper plans to expand your business.
While most landlords are willing to offer a slight discount on your rent if you sign a longer lease, short-term leases provide you with the flexibility of moving out quickly.
If you own a small startup business and are uncertain of your future, you should opt for a small office space for lease. You can outgrow the space, making the short-term lease agreement much more feasible and safer. A great way of evading long-term leases is opting for shared office space from https://www.austinofficespace.com/.
4. Don’t Be Afraid to Add Revisions
There’s more to leasing a commercial space than just paying your monthly rent. You need to determine the condition of your office space before signing a lease. Renovations or rebuilding existing spaces may leave your money on the table.
If there are any small office space ideas for a makeover, you need to know who will pay for the improvements. You’ll also want the details spelled out on the renovations made that will be made and who will own the renovated equipment upon completion of the lease.
Also, you should pay extra attention to expansion and space reduction options. If you need your office space to be increased or reduced, you can ask the landlord for these revisions on your lease contract. You should also think about what happens in case you want to break the lease.
Since breaking a lease can be expensive, you can minimize your liability by asking to include a break clause in your lease agreement. It should clearly define the terms for getting out of the lease and the specific amount of penalties you’ll need to pay if needed.
You can also negotiate about your right to sublet a portion or all of your space or transfer your lease to a new owner in case you need to move or you sell your business.
5. The Type of Commercial Property Insurance You Need
Your lease agreement should state your insurance obligation. You should know the type of coverage required for your office building and who will pay for it. This ensures there aren’t any surprises in case of damages or lawsuits.
Every lease is different, depending on the building you want to rent.
In most cases, your landlord may purchase insurance for the whole building, and while you may buy commercial property insurance that covers your actual office rental space and its contents. You may also need to take care of liability insurance to protect your business from potential lawsuits arising out of the use of your office space like slip and fall accidents
It’s also important to know the true value of your property is important. This ensures you choose insurance coverage limits that are enough to cover the costs to replace your property in case of damages or theft.
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Find the Right Office Space for Lease
Are you looking for a good office space for lease?
From finding the perfect location to dealing with legal and financial complexities, working with a professional broker can make your search hassle-free. Read more of our blog posts to learn more about small office space ideas.