How to Lease Commercial Real Estate

How to Lease Commercial Real Estate

As a business, you should know the ins and outs of leasing commercial real estate. Knowing how to negotiate effectively with a landlord will help you avoid getting ripped off and will also aid you during the negotiation process.

There are three forms of commercial leases:

  • Full-service leases
  • Net leases
  • Modified gross leases

In this article, we’ll be breaking down the steps of finding, negotiating, and signing a commercial lease as you search for commercial space for rent.

1) Setting your property parameters

Before you start signing contracts, you should have a general idea of your ideal property parameters. There is a massive range of commercial property for rent out there, thus setting predefined parameters will help you significantly limit your search.

You should have an idea of your ideal building size, ideal customer, accessibility, budget, and property type/zoning. Setting and understanding these parameters will ensure you find commercial real estate that’s perfect for your needs.

Now we’ll exam each of these parameters in-depth to gain a better understanding of each.

Ideal Customer

No matter what type of business you’re running, one of the most important parameters you should focus on is your ideal customer. Examples of businesses that fall into this category are restaurants and retail stores. Identifying where your ideal customers congregate will help you pick the perfect location to set up shop. 

Let’s say you run a tire business. Setting up along a major road will put you in the optimal position to become more visible to drivers who are in need of a tire change.

When it comes to office leasing, you should search for a location that’s more suitable for your employees. How easy is the location to find? Is there accessible parking? Etc.

Property type/Zoning

When you’re on the hunt for office space for rent be mindful of zoning laws. All commercial real estate has been zoned for a specific use. For example, certain commercial buildings have been zoned for retail stores while others have been zoned for use by restaurants.

Therefore, if you’re attempting to open a warehouse, you won’t be able to lease a commercial space zoned for a grocery store. It would behoove you to know the type of zoning your business needs. Conduct thorough research on your local zoning laws to stay ahead of the curve.

Size

Buildings come in all shapes, sizes, and layouts. The best way to go about determining the size of your desired office space for lease is to calculate either the total number of people you plan to employ or the maximum number of customers that you can accommodate at any given time. 

Max Budget

Always be aware of your maximum budget. Recognizing your limitations will allow you to avoid wasting your time searching for offices for rent that don’t fall within your budget. Typically, your maximum budget is determined by the size of your business as well as its performance.

Accessibility

Easy accessibility is essential for every business. Let’s say you run a restaurant. Do you have adequate seating for your customers? Do you have sufficient parking? Do you have a ramp for disabled individuals? Are you located in an area with ample vehicle and foot traffic? Answering these questions will give you a general idea of how truly accessible your commercial space is.

The various types of commercial leases

2) The various types of commercial leases

There are three types of commercial leases you should familiarize yourself with:

  • Full-service lease
  • Net lease
  • Modified gross lease
Full-service lease

When it comes offices for lease, the most common type of commercial lease is a full-service lease. With a full-service lease, the rent is all-inclusive. This means the landlord takes care of all property related expenses. Such expenses include insurance, repairs, utilities, janitorial services, and property taxes.

Full-service leases are easily the best deal for the tenant because all costs are upfront. Therefore the tenant can forecast monthly expenses without the fear of hidden fees upsetting their budget.

Net lease

With a net lease agreement, the tenant pays a lower annual rent when compared with a full-service lease. As a result, the landlord can also charge what are considered to be “usual costs.” These include common area maintenance items (CAMS), property insurance, and property taxes.

There are three types of net leases: single, double, or triple net lease.

With a single net lease, the tenant pays a pro-rata share of the building’s property taxes on top of the rent. With a double net lease, the tenant must add on property insurance in addition to the property taxes and rent. With a triple net lease, the most landlord-friendly lease, the tenant must pay property insurance, property taxes, and CAMS.

The primary advantage of a net lease is the fact that the rent is cheaper overall. However, the tenant takes on the responsibility of covering the maintenance fees of the property. In most cases, these fees will be added to the rent on a monthly basis.

Modified gross lease

If you’re not interested in either a full-service lease or a net lease, you can meet in the middle with a modified gross lease.  With a modified gross lease, tenants pay for CAMS, property insurance and property taxes. What makes the modified gross lease so unique is these expenses are paid along with the rent in one lump sum. 

The primary advantage of a modified gross lease is that the price is fixed and you won’t have to contend with any hidden fees. Even if certain expenses increase (such as CAMS or insurance), your rent will always remain the same. Also, when you sign a modified gross lease, the landlord covers the janitorial and utility costs.

3) Find the right type of commercial property

 There are a variety of factors you need to keep in mind when you’re searching for the right type of commercial property.

Anchor tenants  – sometimes commercial properties that have multiple units will have an anchor tenant. The perfect example of an anchor tenant would be a dental office located within a shopping complex. Find out about any possible anchor tenants before signing a lease, because the landlord might be able to back out from the other leases associated with the property if the anchor tenant leaves.

Location – ensure you’re in a commercial space that either accommodates your employees or your customers.

History of the landlord – knowing the history of your landlord will give you an idea of what to expect during your interactions with one another. Often times commercial space lease agreements span multiple years, so it’s best to know as much about the landlord as possible.

Amenities and services – what type of amenities and services does the commercial space offer? Examples include utilities, dining options, Wi-Fi, loading bays, outdoor space, etc.

Doing a walkthrough of the commercial space

When you’re searching for a commercial space, you should always look for multiple locations. That way, you’ll have more options when you enter the negotiation phase. On average, you should identify at least 4 -10 commercial spaces. This will give you a ratio of the average price that you should come to expect of the commercial real estate in a specific area.

A great idea is to identify around 8 – 10 commercial spaces that fit your criteria and then limit that number down to 4 -5 picks. Once you’ve done that you should do a physical walkthrough of those locations to narrow your choices even further.

In the commercial real estate business, physical tours of a property are customarily referred to as “technical property reviews.” It’s highly recommended that you walk the property with an experienced contractor because the property may need what’s known as a lease buildout –improvements and additions that are required to be added to the commercial space.

Lease buildouts can be essential to the negotiation process because you may be able to get the landlord to either fully or partially cover the expense of any repairs or additions. It all comes down to negotiating the lease buildout into your lease once you’ve entered the negotiation phase.

Of course, that leads us into one of the most critical aspects of this guide — negotiating the terms of your commercial lease.

4) Negotiate the terms of your commercial lease

When you have located the commercial space that fits your criteria, it’s now time to move on to the negotiation phase. Formally, you should request the terms of the lease in writing. This information will be communicated to the broker of the landlord.

Next will come your business letter of intent (LOI) which states your offer or counteroffer. You can use your LOI to communicate to the landlord why you’re the best choice for a particular piece of property. You should make your LOI as convincing as possible because it’ll make you more attractive to the landlord, especially when you’re competing for a commercial property that’s especially competitive.

This is what your letter of intent should include:

  • The number of years you’ve been in business
  • A statement with your intent to lease
  • The terms you wish to propose
  • A list of your products and services
  • Your pricing
  • A description of your business
Common commercial lease terms you’ll encounter

We’ve discussed the various types of leases, but no matter what lease you end up signing, you’ll run into a number of similar terms. Let’s take a look at a few of the more common terms:

  • Rent abatement – the tenant will either not have to pay rent or pay a reduced price if there is any damage to the commercial property until the damage has been fixed.
  • Length of lease – on average a commercial lease can range anywhere from 3 to 10 years. Businesses will often find shorter leases are advantageous because it lessens future financial burdens which allows for great flexibility.
  • Capital expenditures – this term makes reference to the party who’s responsible for specific expenses such as maintenance and repairs amongst other costs associated with the building.
  • Lease build-out credits – a representation of the tenant’s ability to conduct leasehold improvements in their rental property which will then be charged to the landlord. The only improvements that fall under this category are the ones that are required for the business to operate successfully. To cover the cost, the landlord will either pay out of pocket, reduce the rent, or reimburse the tenant.
  • Deposit – the vast majority of leases require a deposit. Deposits are typically fully refundable and serve to protect the landlord from a tenant who does not pay their rent or from those who cause significant damage to the commercial space.
  • Termination clause – this is a clause in the lease that allows either the tenant or the landlord to terminate the lease under specific conditions. Termination clauses are both good and bad because they allow the tenant to terminate a lease when needed, but the landlord can easily do the same.
  • Use clause – this is a clause that defines the type of business that can use a particular commercial space. For example, you can only open a restaurant in a space that has been zoned for restaurants.

There are many terms for commercial leases. Do your homework and know what terms are available to you so that you can identify all of your options.  

What it all comes down to

When it comes to leasing a commercial space, there are a great many factors you have to keep in mind. Ultimately, commercial leases can work to your advantage if you know what factors to look for. Do your homework. The more prepared you are, the more likely you’ll end up with a good deal that will benefit your business for the long-term.

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5 Mistakes Small businesses make when leasing office space

X Mistakes Small businesses make when leasing office space

It can be exciting when you’re on the hunt for new office space. However, jumping in without a plan is often fraught with danger. In fact, it’s all too common for small businesses to make mistakes while leasing office space.

Owners get overly excited and make crucial mistakes that can prove costly for the business. Some errors could even slow the growth of the company itself. Often, rent is the second highest expense that businesses have to deal with. Therefore, doing things right the first time can potentially save you untold amounts of money down the line. 

Let’s look at 5 mistakes that small businesses make when leasing office space so that you can learn what not to do the next time you find yourself in the market.

1) Procrastinate

We’re all familiar with procrastination. It’s that thing we do when we put off important work. Procrastinators often have the “I’ll just do it tomorrow” attitude. The problem with that type of thinking is that tomorrow typically never comes until it’s too late.

Procrastination can be the kiss of death for a small business owners hunting for office spaces. Generally, you should begin searching for an office space at least six months in advance before moving out of your current space. Looking this far in advance gives you time to check out prices, the surrounding area, and just get a general feel for how the market is.

Searching last minute may put you in a position where you might have to settle. Whether you’re settling with a building that’s too small, too big, disagreeable rent, a bad area or any number of factors, you will always be at a disadvantage. So do yourself a favor and search early. You may potentially save yourself thousands of dollars. 

2) Relying on just listings

Most of the time, Google is your best friend. In this instance, it might just work against you. The temptation to find office listings through a Google search can be tantalizing, and while it can give you a general snapshot of the market in a particular area, you might just be led astray if you’re not careful.

Sometimes, online listings can be inaccurate. Plus, it’s in the landlord’s best interest to get a business owner down to the property as fast as they can where they’ll have a leasing agent ready to make the big sale.

Oh, and the sale has to happen today, or the “exclusive” deal will go away. This puts pressure on the business owner which may cause them to make a purchase without truly understanding what they’re getting in to.

3) Doing everything alone

You’re a business owner; therefore you have a good sense of how to negotiate fair deals and whatnot. Right? That type of thinking can leave a business owner with a potentially bad buy. Leases can be very complex in the way they’re worded, and they can often change depending on the type and size of the space. Also, it’s generally advised that you should never sign a lease for a space larger than 2000 square feet without a trained professional at your side, poring over each line of the contract with you.

There are just too many variables to a tenant lease for someone who isn’t trained to try to go it alone. Bring a good tenant broker with you. There can be hundreds if not thousands of small variables that may fly under your radar. However, a trained tenant broker might be able to catch most of the things that you miss. 

Tenant brokers represent your best interests. The best trained tenant brokers will take care of all of the legal complexities that go with signing a contract and will get you the best deals with the fairest lease terms.

With all of the hidden information that can be found in leases, you should never take a chance. Often, a tenant broker can save their client up to 25% of the total value of the lease.

4) Going in with no research

Sadly, many business owners take a chance and go in blind and end up getting burned on certain aspects of the contract (such as rent). If they had just done even a small bit of research, they might have been able to negotiate a better deal.

 All business owners should have a general understanding of how they should go about leasing a commercial space before they even start looking. They don’t have to be experts, but they should know just enough to be dangerous. Going into a deal with as much knowledge as you can is a good way not to get ripped off.

Understand your advantages, identify pitfalls and recognize your rights as a tenant before getting into a contract. Signing the dotted line on a lease you don’t understand could have disastrous consequences for any small business.

5) Acting on an impulse

Remember, renting an office space is a major decision for a small business. Not only does it take a toll on finances, but it can also affect factors such as growth. Thus, detaching yourself from your emotions is vital to help you make the most informed decision that you can possibly make.

Spend more than a few hours during the research phase. Put in your due diligence and find out as much as you can. Take into account the things that matter most:

Can you afford the rent? Do you plan on growing? How much space do you need? Do you need a parking lot? Etc.

Lastly, do your best not to be seduced by a real estate agent because it’s their job to close you right then and there. Leave the emotions at the door.

Avoid these mistakes

One of the most significant investments that a small business can make is leasing office space. Performing your due diligence will make you an informed consumer which will allow you to understand all of your options. Furthermore, there’s no shame in bringing a professional with you if you’re not sure how the process entirely works. There’s too much at stake to make dire mistakes. Get it right the first time so that you won’t regret it later on down the line.

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10 Factors in Choosing Clifton Park Commercial Space For Rent

10 Factors in Choosing Clifton Park Commercial Space For Rent
Finding office space for rent can be a daunting task. Not only do you have to accommodate your customers and vendors, but you also have to provide for the needs of your staff. Do your facilities have adequate parking? How far is the commute? Is your office space easy to locate? These are just a couple of factors you have to take into consideration when you’re looking for a commercial space for rent.

Clifton Park has a lot to offer businesses searching for commercial property for rent. From its beautiful landscape to its many amenities Clifton Park is a prime location to settle down your business. Before jumping into a contract take a look at these 10 factors you should keep your eye out for when searching for office rentals in Clifton Park.

1) Beautiful Landscape

If there’s one thing that Clifton Park has in abundance, it’s beautiful landscaping. Stunning evergreen parks, peaceful lakes, woodland, and wildlife are a regular way of life in Clifton Park. Enjoying the serene scenery during a lunch break can be an excellent way to distress after a hard day at the office. The air is crisp and clean, and the surrounding area is the perfect mix of nature and humanity.

Beautiful Landscape

2) Low Crime Rate

Clifton Park is a family friendly town that has notably low crime rates. However, knowing how often crimes occur in the area where you’ll be renting your office building is important. Your customers, vendors, and employees should feel safe visiting your location. Knowing this information should also influence the types of security measures you take to protect your assets. If your customers don’t feel safe visiting your office building, they may take their business elsewhere.

3) Close to Amenities

Finding office space for lease close to amenities (restaurants, shopping centers, malls, etc.) will make the lives of your employees much easier as they will be able to plan out their day and get much more done due to the amenities around them.

Clifton Park is home to dozens of restaurants that offer a medley of food choices that include Italian, Chinese, Seafood, Mexican, Sushi, American and fast food. Your employees will also find that Clifton park offers gyms, malls, movie theaters, shopping centers and other forms of entertainment.

4) Visibility

Can your office space be seen from the road? Even if you’re getting a great deal on the rent, you should take into consideration whether or not your business is easy to locate visually. If your customers can’t find you, then you’re missing out on money.

As the great British real estate tycoon Lord Harold Samuel once said – “There are three things that matter in property: location, location, location”.

5) Commute Times

Its been said that Americans spend an inordinate amount of time of their lives waiting in traffic going to and fro from work. Every minute in traffic is another minute spent away from friends and family. The best way to minimize this issue is to find office leasing in a convenient part of town.

Ask yourself these questions: does this part of town experience high levels of traffic on a regular basis? Is the traffic reasonable at the end of the workday? Your employees will be much happier and likely more productive if they know they won’t have to wait in traffic for hours just to get to and fro from work.

6) Close to clients and vendors

If you have a team that targets a specific type of business having an office in a centralized location will prove advantageous. Ideally, your employees should be spending more time working and less time traveling back and forth from their target destination. Before choosing your location in Clifton Park, research the area to ensure that you’re close to your ideal clients and vendors.

7) Foot traffic

Are you located in an area that receives a considerable amount of foot traffic, or can you only be reached by car? If you’re more concerned with confidentiality or privacy, then choosing a location with little to no foot traffic would be ideal. If you rely upon a high volume of customers to sustain your business, high foot traffic may be your life blood.

8) Proximity to competition

The worst thing that you could end up doing is picking an office space that’s located right next to your competition. Not only will you have to compete for customers, but convincing people that you’re the superior choice is a struggle in itself. Finding a location that’s a reasonable distance away from any nearby competition will allow you to “carve out” your own little piece of Clifton Park for yourself.

9) Price

Price is typically the most important factor when searching for offices for lease. No matter what office space you end up renting, it all comes down to your budget. If you spend too much, then you’ll struggle to pay your rent or even be forced to move into a smaller office rental. If you spend too little, you might end up in an office space that you’re unsatisfied with thus prompting you to move anyways to find an office space that you are satisfied with. Finding an office rental within your price range is important because it saves you time and money.

10) Size

Of course, size should play a major role in your rental decision, and this is often directly influenced by price. If you pay more, you’ll be working out of a larger office rental. If you pay less…you get the picture.

Ideally, you should find a location that provides 70 square feet per person. Though, no one knows your business like you do. You can play with that figure according to the needs of your business. You also have to factor in eating areas, restrooms, areas to meet with clients, and space to expand. Size is more important then you know and should be one of the most vital factors you take into consideration before renting an office space.

There are dozens of factors to take into consideration when you’re searching for commercial space for rent. Clifton Park is a beautiful city with plenty of commercial rental options to choose from. No matter how stringent your  search criteria finding a location that largely benefits your customers and employees will allow your business to thrive.

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10 Surprising Things available for Lease

10 Surprising Things available for Lease

Typically when people think of leasing something, the first thing that usually comes to mind is renting out a room in a home. However, you may be surprised to learn the sheer number of things available for lease. Some are more surprising than others, but here are 10 things available to lease.

1) Caskets

Funerals can be costly. It turns out that the most expensive part of a funeral is the casket. Your average casket will cost the bereaved family around $2,000. Some Caskets can cost as much as $10,000! To save on funeral expenses, you can rent a decorative casket for the funeral service. Some rentals can cost as little as $1,000. When it comes time for the burial, the family can bury their loved one in a simple, yet less expensive casket.

2) Chickens

If you’ve ever wondered what it would be like to own a flock of chickens, you’re in luck. Companies like Rent the Chicken will rent chickens, a coop, and all of the food and supplies you’ll need to take care of your new flock. Renting a chicken may be a great route to go if you’re unsure about whether or not you’re ready for the hardships of owning your own chicken. If you decide you love your new chicken, you can adopt it into your family! If owning a chicken isn’t quite for you, you can return it at the end of the rental period.

3) Goats

After seeing chickens on this list, you shouldn’t be too surprised that you can also lease goats as well. Goats are fantastic at keeping the lawn nice and short, and they get rid of nasty weeds that may pop up in your yard. Goats are known for their ability to eat practically anything, so make sure you keep them away from your garden. A simple online search will reveal to you whether or not there are goats available for you to rent in your area.

4) Fancy clothes

If you’ve been invited to a fancy affair but don’t quite have the wardrobe to attend, you can lease out fancy outfits at sites such as Style Lend and Rent the Runway. You can rent designer clothes for far cheaper than retail price and look great for your fancy party.  Custom plans allow you to choose the length of time that you need your new outfit. If you’re especially strapped for cash, there are plenty of choices that won’t cost you any more than $50!

5) Your Neighbor’s Garage

When you have gotten to the point that you’ve run out of space in your home to store your personal possessions then it’s about time that you considered storing your items elsewhere. Storage rentals can get a little bit expensive, however, so why not rent out your neighbor’s garage? If your neighbor has extra space in their home, garage, basement, attic, etc. then sites like Store at My House will allow them to list the extra space on their property. Renting space with your neighbor should save you money and keep your items close at hand without jumping through the hoops of a storage unit contract.

6) Wedding Cake

Weddings are already expensive. Add in an extravagant wedding cake that could potentially cost into the thousands, and there’s a possibility you won’t have any money left over for the honeymoon. If you’re on a budget, renting a fake wedding cake is always a viable option. Companies like cakerental.com are masters at replicating Styrofoam cakes that look like the real thing. They can even insert a real slice of cake for the “first bite”. Afterwards, you can wheel the cake away, and you can serve your guests something on the cheaper side (like sheet cake). You’ll get your pictures and your guests still get to eat cake. Everyone wins!

7) Tires

There’s nothing more dangerous than tires that have been stripped of their threading. It’s one thing to drive around the corner to the supermarket (though even that is dangerous on balding tires), but if you need to go on a road trip or drive further out and you can’t quite afford brand new tires, you could always rent tires. Renting tires every day will begin to add up when it comes to the rental fees, so you’ll want to buy new tires eventually. However, tires is a fantastic short term solution so that you’re safe on the roads until you implement a long-term solution.

8) Solar Panels

Perhaps you’re ready to change the energy source that powers the items in your home but can’t afford the expense of installing solar panels. If that’s the case, you can lease solar panels from companies that will deliver and install the proper equipment either for free or for a small fee. You can either pay a monthly fee and keep all of the power that you generate, or you can sign a power purchase agreement and buy only the power that you need. Both options are typically cheaper than the rates offered by utility companies.

9) Luggage

Luggage is one of those things that you only need for a select few occasions: moving, traveling, etc. Unless you often travel your luggage goes largely unused for most of the year. So why own when you can rent? Save room in your garage by going to sites like RentLuggage.com and pick out the luggage that you specifically need for your trip. Whether you need travel bags, suitcases, or even bags to move sports equipment, you should be able to find a suitable rental to handle all of your needs.

10) Office Space

Well, this one may not be so surprising, but if you find yourself in a situation where you need a workspace, but your current work/home environment isn’t cutting it, you should think about leasing an office space. Finding an office space for lease will allow you to conduct business in a professional environment. An office space is a perfect place to get more work done and provides a physical location for your clients to sit down and speak with you about your services.

 

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How to Rent Commercial Space: The Ultimate Guide

How to Rent Commercial Space: The Ultimate Guide

Finding a commercial space for rent can be a time consuming and arduous process. When negotiating a commercial real estate lease, you’re initiating a rental agreement that allows for a business (yourself or someone who represents your interests) to rent commercial space from a landlord (such as an office building). Generally speaking, commercial leases come in three forms: modified gross leases, full-service leases, and net leases. If you’re ill-advised or simply don’t know what you’re doing, you will be at a severe disadvantage when searching for a commercial space with decent rent. This guide is designed to help you navigate through this process.

1) Set your commercial real estate parameters

As you begin your search, the very first thing you’ll want to do is set your property parameters. This is because of the wide variety of commercial propertiesavailable for all of the different types of businesses. With such parameters in place, you’ll be aided as you search for a commercial property to rent that suits your specific needs. Ideally, you’ll want to have a clear understanding of the following factors:

  • Accessibility
  • Desired size
  • Maximum budget
  • Property type and zoning
  • Ideal customer (or employee pool)

With a clear understanding of these specific elements, you will be well prepared to rent a commercial property.

2) Understand the different types of commercial leases

As already mentioned, there are three types of commercial leases. The only discernible difference between each type of lease is how costs and fees are evaluated.

Full-Service Lease

If you’re searching for an office building for rent, you’ll likely be signing a full-service lease. Full-service leases have a number of benefits. One of which is the benefit of all-inclusive rent. That means that the landlord is solely responsible for paying all expenses associated with the property. This includes maintenance and repairs, utilities, janitorial services, insurance, and taxes. If you’re a tenant, this is the best type of lease that you can get. You don’t have to worry about hidden fees, and it’s quite simple for businesses to predict their annual expenses. If you’re interested in office leasing, this may be the lease for you.

Net Lease

When a tenant engages in a net lease, the landlord will charge a lower annual rent (especially when compared to a full-service lease). In this case, the landlord can also add on other costs such as property insurance, property taxes, and common area maintenance items (CAMS).

Modified Gross Lease

If the full-service lease or the net lease doesn’t quite work for you, the modified gross lease serves as a compromise between the two. With the modified gross lease, the tenant may agree to pay a portion of the property insurance, property tax, and CAMS. However, the payment is taken as a lump sum along with the rent.

3) Identify the right commercial property

As you’re searching through the various property listings that you’re interested in, keep these factors in mind:

  • Anchor tenants – anchor tenants are typically associated with multi-unit commercial properties. The best example of an anchor tenant would be businesses anchored to shopping centers and malls. If you find yourself in such a situation, do your research. Your landlord might be able to back out legally of the property’s other leases if one of the anchor tenants leave.
  • Location – when choosing your commercial property it’s all about location. Make sure that your property is located near your ideal customer base and/or workforce. You’ll also want to consider other factors such as foot traffic and vehicle traffic as well as adequate parking.
  • History of the landlord – this is an important one because commercial leases tend to run for more than one year. If you’re going to sign a multi-year contract, you’ll want to know of the history of your landlord. Sites like ReviewMyLandlord should help you gain a better understanding of who your landlord will be.
  • Amenities and services – before you sign any contract, you should learn about all of the amenities and services offered by the office space that you seek. Amenities and services can include free WiFi, communal rooms, dining options, sewage and utilities, on-site security, and much more.

4) Negotiate commercial lease terms

The first part of the process is researching your commercial space of interest. Let’s say you find an office space for rent that you happen to like; the next part is making a choice and negotiating a lease. When entering into the negotiation process, you should begin things by requesting all terms in writing. You should especially do this if the commercial space is in high demand.

When drafting your letter of intent, include these elements:

  • Your proposed terms
  • A description of your business
  • Statement of your intent to lease
  • A list of products and services (including pricing)
  • Number of years you’ve been in business

When setting your terms, they can either be the same that was offered by the landlord’s broker or a counter-offer proposed by you or your broker. Terms will include the type of lease, the rental price, and more. Understand that you can counter any lease term at any time.

5) Commercial real estate: leasing vs. buying

After examining your desired number of commercial spaces, you’ll wonder whether you should rent or buy. Depending on the situation it may be more advantageous to find an office space for lease as opposed to one that’s for sale. However, the same concept works in reverse. Each situation is unique. Here are a few specific benefits of buying over leasing a commercial real estate property:

  • Depreciate the building – the annual depreciation of the building can be claimed on your tax returns.
  • Increase cash flow – in most cases, commercial spaces require the owner to occupy at least 51% of the building. The remaining space can be rented out, and the owner can receive the rental income.
  • Build equity – you can use this equity as collateral for additional expansions.

There are also benefits to leasing a commercial property as well. For one, tenants are able to avoid down payments. In place of a down payment, leasers pay a refundable deposit equal to 3-6 months’ rent. Furthermore, lease payments can be deducted, thus reducing the tax burden on a business. If you’re interested in these particular benefits, finding offices for lease may be your best option.

Conclusion

Ultimately, commercial real estate leases are a long-term rental agreement that exists between a landlord and a business. As you search for various commercial spaces, such as office rentals, you should always do your homework. Understand the differences between the various lease types (full service lease, net lease, and modified gross lease). Set your property parameters and once you settle upon a property, attempt to negotiate favorable lease terms. Renting a commercial space can be a difficult process, but with the right amount of research you will be prepared to face any situation that may arise.

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Office Space Trivia

Office Space Trivia

Image Source: Pixabay
There was no way that when Office Space first made its debut in theaters on February 19, 1999, that it would become the popular classic that it did. Not only did Office Space prompt unhappy office workers to quit their jobs in droves, but it also changed entire restaurant chains. With a well-lived DVD life and repeated showings on cable TV, Office Space still lives in our hearts and minds to this day. For those of you who think they know this movie inside and out here’s some Office Space Trivia to test your knowledge!

1) Office Space has been compared to a Herman Melville short story

In the 1853 short story Bartleby, the scrivener: A Story of Wall Street, the protagonist works extremely hard by hand-copying legal documents until the day that he outright refuses to work and begins responding to every request made by his boss with the phrase “I would prefer not to”. Melville’s plot and Office Space share many similarities.

2)Office Space takes place in “Anywhere, USA”

Despite the fact that Office Space was shot in Las Colinas and Austin, Texas it’s not certain where the characters in the movie actually lived. Notably all of the vehicles in the movie had custom-made “USA” license plates on them.

3) T.G.I. Friday’s changed its policies after watching the movie

Jennifer Aniston’s character, Joanna, grew more and more detached from her job because the management kept jumping on her for not wearing enough “flair”, or buttons, on her uniform. After the release of the movie, the real T.G.I. restaurant chain eventually got rid of its flair policy by 2005. One of Judge’s assistant directors talked to a T.G.I. employee, and found out that the restaurant chain had axed their flair policy “because of that movie Office Space.”

4) The studio didn’t like the mostly hip-hop soundtrack

It took the power of multiple focus groups to influence 20th Century Fox into including rap artists like Scarface, Ice Cube, and the Geto Boys. It turned out that the executives at 20th Century Fox weren’t too thrilled with the soundtrack. Songs such as “Still” and “Damn It Feels Good to Be a Gangsta” are still played around the world as disgruntled employees beat down office printers.

5) Accountants were among the first people to quote Office Space

As Judge was writing and directing his movie, he figured that there was a problem with the studio executives relating to the mundane jobs portrayed in Office Space. He also had doubts whether or not audiences would be able to resonate with the movie. It was no surprise that he felt uplifted when the post-production department’s resident accountants often referenced the movie even before it was released to the public.

6) TPS isn’t a made up acronym

TPS wasn’t just a made-up acronym for the movie. Judge revealed at the 10th-anniversary screening that Peter had to fill out Test Program Set reports. This was a reference that goes back to his days as an engineer.

7) The executives at 20th Century Fox wanted the characters to be happier

If you’ve watched the movie, you should remember the bored and mundane attitudes that most of the cast portrayed throughout most of the movie. The straw that truly broke the camel’s back for some executives was Lumbergh’s famous “mmm…yeeaaahhhh” phrases that supposedly drove some of the executives crazy.

8) Scene not scripted

The “P.C. Load Letter” scene was not scripted. In fact, the interaction between David Herman and Ron Livingston was supposed to run for longer, but they were interrupted by the photocopier jamming in the background.

9) Office Space originated with shorts that ran on MTV and SNL

In his early days, Mike Judge created a series of shorts called Milton that he created, wrote, animated, and voiced. The main star was Milton Waddams who we can presume was still working at Initech at the time and was an early version of Lumbergh. MTV’s Liquid Television aired the first episode in 1991, alongside with other Judge shorts such as The Honky Problem with, Huh? Milton would make three more appearances in the 1993-94 SNL seasons.

10) Office Space was made based off of the success of “There’s something about Mary”

With the success of the Farrelly Brothers movie “There’s something about Mary”, 20th Century Fox was on the lookout for the next breakout comedy. They figured that the Milton shorts had the potential to become that next great hit. Initially, Judge was skeptical of the idea, but he eventually caved in, and the rest is history.

11) Mike Judge had a specific job that influenced the script

Mike was a former engineer who alphabetized purchase orders 2-3 weeks for eight hours a day. Mike described the experience as “god-awful”. We could certainly see his experiences reflected in the movie!

12) Mike Judge did character impersonations on set

Whether you knew this or not, Judge voiced the characters of Boomhauer from King of the Hill and Beavis from Beavis and Butt-Head. He was often pestered by the crew members on set to do the impersonations of these classic and well-loved characters.

13) Michael Bolton had to deal with fallout from the movie

Michael Bolton was doing fine until they made Office Space. These were his sentiments in a 2003 article in which he seemed annoyed when he talked about the movie. In the movie, he was called a “No-Talent Ass Clown” and ever since the release he hasn’t been able to go out into public without people swarming him due to the reference. It took ten years for Bolton to admit that the movie was funny and he signs DVD copies of Office Space to appease fans.

14) Diedrich Bader knew exactly what Lawrence should look like

Diedrich Bader has had quite a few notable roles including Oswald Lee Harvey on The Drew Carey Show. Bader wanted a character who looked like “somebody who loved the Allman Brothers”. It seems he hit the mark quite spectacularly.

15) Swingline made red staplers because of the movie

The most precious item in Milton’s office was a Swingline stapler that was painted red because it needed to pop onto the screen. After the movie aired, potential customers began contacting Swingline to obtain a red stapler. The problem was that the stapler didn’t actually exist. Finally, after seeing the success of several enterprising individuals who made a good profit selling red staplers on e-bay, Swingline offered a “Rio Red” model in April 2002.

What’s the difference in the Types of Commercial Real Estate Leases?

Different Types of Commercial Real Estate Leases

Matching a landlord and tenant in the commercial real estate process can be difficult unless you have a lease type that benefits them both. Both parties have their own priorities. The tenant, for example, wants to negotiate the best deal they can on rent. The landlord, on the other hand, is interested in the income from rent and maintaining the control of expenses. Due to the needs of both parties involved it’s important that you use the right type of lease when bringing an offer to the negotiating table. Commercial leases have a tendency to to be more complicated because there are many considerations to take into account.In direct contrast, residential leases tend to be less complicated. The tenant handles their rent and utilities (minus sewer) and the landlord handles all other expenses.

Lease types tend to be determined by the kind of tenant business:

  • Manufacturing businesses – a manufacturing business such as a heavy machinery shop or an automotive shop tend to dip heavily into utility costs. Also, due to the nature of these businesses, there is natural wear and tear on the commercial property for rent. More than likely constant repairs will be an issue. Landlords tend to use triple net leases in situations such as these, though modified net leases can also be utilized.
  • Retail businesses – many retail business owners have to deal with sales shifts throughout the year due to multiple factors. For example, a store may not make nearly as much during the summer as they would during winter due to the Christmas season. Because of these factors, tenants have a preference for low lease payments during the times of year that they have slower business and switch to higher payments during high cash flow months. This is known as a percentage lease.
  • Offices With Consistent Clients – many consultants, accountants, and attorneys use the gross leasebecause they’re typically interested in only paying a fixed amount every month, much like a residential lease. On top of the fixed amount, they may have to pay utilities. All other expenses fall upon the landlord.

Full-Service Lease Gross Lease

Lease Types

  • Gross Lease/Full-Service Lease – with the gross lease, the rent is all-inclusive. This is a very tenant-friendly lease because the landlord covers all or most of the expenses associated with the property. These expenses include:
    • Taxes
    • Maintenance
    • Insurance

It’s advised that when you’re negotiating the terms of a gross lease, you inquire into the kinds of janitorial services provided and the frequency of such services. Keep in mind that all excess utility consumption, beyond the regular use of the business, might fall back to the tenant. The tenant covers their own taxes and insurance. Smaller companies can benefit from this type of lease because it allows them to predict future expenses and focus on the business itself.

  • Net Lease – The net lease is broken down into multiple subcategories, but with this kind of lease, the landlord charges a lower rent for the commercial space for rent in question and also covers the other expenses associated with the maintenance, operations, and use of the premises. These include:
    • Property insurance
    • Real estate taxes
    • Common area maintenance items (CAMS)
    • Janitorial services
    • Sewer
    • Water
    • Trash collection
    • Landscaping

The Net Lease is further broken down:

  • Single Net Lease (N Lease) – the tenant covers the base rent as well as a pro-rata share of the property taxes associated with the building. This means that the tenant must also tack on an expense for the proportion of total building space of the building they are leasing. The tenant must also cover janitorial services and utilities.
  • Double Net Lease (NN Lease) – the tenant includes the base rent as well as a pro-rata share of the property taxes associated with the building. They must also cover property insurance. It falls upon the landlord to cover common area maintenance. It’s still the responsibility of the tenant to cover the utilities and janitorial services.
  • Triple Net Lease (NNN Lease) – AKA the net netnet lease (or NNN lease), the triple net lease involves the tenant paying all or a portion of all of the net expenses:
    • Property taxes
    • CAMS
    • Insurance

The Triple net lease is the most popular of all the net lease types for retail spaces, such as office rentals, and commercial freestanding buildings. The tenant still covers janitorial services, insurance, taxes, and utilities. This kind of lease is more landlord friendly.

  • Absolute Triple Net Lease -You can think of this lease as a far stricter version of the NNN lease. The tenant carries all risk associated with the office space for rent. They cover all expenses following a catastrophe and must pay even if the building has been condemned. This lease is fondly referred to as the “hell-or-high-water lease”.
  • Modified Gross Lease – the modified gross lease is both a tenant and landlord friendly agreement. In this kind of lease, the rent is requested in a single lump sum. This can include all of the previously covered nets, insurance, CAMS, and property taxes. The tenant and landlord can negotiate which “net” is included in the base rent.

If you’re out hunting for an office space for lease, or any other kind of commercial building, you want to make sure that you know all of your lease options. Depending on your situation, some lease types may be detrimental as opposed to others that can help you to grow due to the current financial position of your business. Remember to read your lease very carefully and ask questions of anything that you don’t understand.

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Doing Feng Shui The Right Way in Your Office

Written by Gregory Miller

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An office that is aligned with feng shui principles is an office that inspires productivity and power.

Whether you are moving into a new commercial property or looking for ways to spruce up your office, here are six ways to create a feng shui office space.

1.Clear Out the Clutter

When you start searching for office space for lease, notice if any clutter has been left behind by the previous tenant. If so, clear out the clutter.

Mess and clutter have a significant impact on our emotional, spiritual, mental, and physical well-being. Once clutter is cleared out of an office, vital energy is brought in that will help to:
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  • Attract financial success
  • Increase productivity
  • Improve focus and mental clarity
  • Increase efficiency and effectiveness
  • Reduce stress
  • Promote a feeling of peace and calmness
  • Create a space for new creative endeavors and projects to thrive

It is important to establish a workstyle to help maintain an organized workspace.

Everything that you use on a daily basis should be kept within arms’ reach so that you don’t have to get up from your desk.

Deal with paperwork at least weekly to avoid feeling overwhelmed when you have to deal with bills, filing, and other tasks.

To help maintain your new clutter-free space:

  • Leave your desk tidy and neat at the end of each day
  • Avoid overcrowding any bookshelves
  • Open up a cramped spaced with mirrors
  • Keep cords to equipment well hidden

2. Position Your Desk According to Feng Shui Principles

An office that is laid out according to feng shui principles should ensure that you are seated in a power position.

When you sit at your desk, you should be able to see the door and as much of the office as possible. Take this into account when looking for offices for rent. Keep in mind that, according to feng shui, the person who is seated farthest from the entrance is thought to have the most power.

Keep these points in mind:

  • The person who sits closest to the entrance is going to be distracted by petty details
  • Those who sit with their back to the entrance will suffer backstabbing and succumb to office politics.
  • If you share an office space, avoid sitting back to back with another person
  • Avoid sitting face to face. This creates conflict.
  • Use headphones and speak quietly during phone conversations to incite acoustical privacy

If the office space necessitates people sitting back to back or face to face, the desks should be staggered. Small barriers can also be created with photos, plants, and even room dividers.

Some workspaces necessitate an open-plan environment. Sharp edges of desks create poison arrows which contribute to discomfort, dis-ease, and irritability. Plants and pictures can be used to soften the edges.

In an open office, ensure the aisles are wide enough to allow positive energy to flow through. Subtle colors also help, since vivid shades are too active in a busy space.

3.Use Imagery and Artwork to Affirm Goals

When office workers are surrounded by objects and images that inspire them, it helps to create living affirmations of their goals.

The objects and images that you decorate your office with should help you to feel productive and creative. You could:

  • Incorporate inspiring window treatments
  • Add fresh flowers
  • Hang beautiful art
  • Hang up mottos and pictures that represent what you would like to accomplish
  • Choose accessories and furniture that speak to you of abundance and prosperity

An office is the ideal template to create a space for what you desire in your life and career, and the things you choose to put in your space should reflect what it is you want to achieve. This is similar to the concept of environmental psychology.

Infusing the office with your personality will foster personal growth. Carl Jung’s numinosity theory cites that every item in the office will have an influence on you, so it should be an uplifting and positive effect.

4.      Create Harmony and Balance

If you are looking for an office space for lease, you will need to consider how to create harmony and balance in the office. There are two ways you can do this:

1. Feng Shui Elements

These represent the natural elements of metal, earth, fire, water, and wood. All five elements should be present in the environment and they should be balanced. This makes for a more balanced person who has a greater chance of manifesting their wishes.

For example, if you work in an overly bright office – considered the fire element – with too many light and shades such as metal cabinets, computers, and desks (the metal element), you need to concentrate on bringing the other three elements in. For instance, you could bring in earthy colors to create the earth element, a few plants to create the wood element, and a fish tank to create the water element.

2.Yin and Yang

This represents the masculine and feminine energies. You should strive to strike a balance between the two to create a nourishing energy. For instance, if you work in an overly masculine office environment with light colors, high ceilings, an abundance of natural light, and angular furnishings, you need to balance it with feminine energy, such as soft furniture, curved and flowing shapes, and window coverings.

Whichever method you decide to use does not matter. What counts is that the space is harmonious and balances.

5.Choose the Right Feng Shui Colors for the Office

Color has a significant impact on our physical and psychological well-being. Whether you are looking for commercial property for rent for your business or are considering office leasing, you will need to consider:

  • The psychological effects color has
  • Which colors are most appropriate for an office space the follows feng shui principles
  • The feng shui bagua, or map, the colors that correspond to each of the sections

A bagua map is an ancient feng shui instrument aimed at helping you to bring in good energy. When you apply the map to an area, each section will align with different aspirations. The colors will give you an idea of how to break up the space and determine which parts of the office are more important and need more attention.

Appropriate feng shui workspace colors include:

  • Pale gold
  • Soft yellow
  • Blue-green
  • Pale green
  • Pale orange
  • Sandstone

Earth tones and browns tend to stabilize and ground a work environment, but they will not stimulate the mind. However, adding white to the overall color scheme helps to increase mental focus and clarity.

6.Include Things That Relieve Stress

Offices can keep employee’s irritability and stress to a minimum by selecting furniture that has rounded corners, or at least placing sharp corners out of the way of foot traffic.

It is also a good idea to avoid too much glare or harsh indoor lighting that can lead to fatigue and irritation. Adding running water in the form of a fountain or water feature, soft music, and even essential oils can keep worker’s stress levels down.

Are You Looking for Office Rentals?

If your current commercial or office space is no longer conducive to the success of your business, it may be time to find a new space that you can apply the above principles to. Contact us to help you find your next workspace.

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Featured Image: PIRO4D / Pixabay

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10 Ways to Optimize Your Office Space for Productivity

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Productivity can be enhanced in various ways. You want to be rested, nourished and, of course, organized. It is difficult to get anything accomplished if your workspace is in disarray. There are many ways to furnish and optimize a commercial space for rent to promote efficiency. Ten of them are explained below, so there are fewer barriers to getting things done in the office.

1.Get a Large Enough Desk to Work Comfortably

Desk size is a major consideration for any workspace. If it is too small, the clutter will destroy any prospects of productivity, and you will waste valuable time looking for and moving items. The desk should be large enough for a computer, phone, notebook, binder, or any item or equipment you use during a normal day. Consider any tools used as well, especially if you’re an artist. Corner and L-shaped desks tend to have more surface area, and these configurations can boost productivity and comfort if your office space for lease permits it.

2. Keep Your Office Ergonomic

Productivity is a real challenge if you are uncomfortable. To maximize your comfort, tend to the ergonomic aspects of your office space, arranging the computer and office chair so there’s a direct line of sight with the computer screen. Both hands should comfortably reach the keyboard. Sit straight up and make sure there’s enough back support. If you can limit back, arm, and eye strain, then less time is spent trying to be comfortable and more of the day can be devoted to getting work done.

3.Everything Should be Within Arm’s Reach

Your office space should allow you to reach notes, pens, planners, a printer, files, and anything else on your desk or in its drawers. It shouldn’t be a strain to get to office supplies. The exact configuration may vary based on your preferences, but immediate access to equipment and supplies, and knowing where everything is, will make your day much easier.

Also, choose the type of storage space wisely. Smaller storage bins and drawers are easier to organize and search through. Larger ones will increase the time spent looking for items that should be within reach.

4.Invest in a Functional, Adjustable Office Chair

When it comes to offices, simple seats or dining chairs won’t do. These are not designed to be sat in for long periods of time. Typical office chairs have a swivel design, wheels, high backs, and adjustability. Your chair should let you move freely about the workspace. Adjustable height is a convenient feature to maximize comfort any time of the day.

5.Focus on a Comfortable, Productive Atmosphere

The atmosphere of a workspace is a big influence on productivity. A temperature that’s cool but not too much so, or too warm, boosts comfort. The office lighting should be bright, so you stay awake and alert all day. Good lighting also helps to prevent eyestrain. Daylight bulbs are ideal for office rentals and even home offices, where soft white bulbs used in apartments may not promote work efficiency. A full-spectrum lightbulb can also be sufficient. It can prevent seasonal affective disorder as well.

There are other ways to optimize the atmosphere of your office space for rent. Music is effective for staying focused, if the circumstances permit. Any genre of music will do; it all depends on your taste. Some people even play background noise to limit disruptions. Sound can put your mind in focus and personalize the work environment, so you are motivated and stimulated.

Other people are motivated by smell. Essential oils in the office can help keep you mentally alert and awake. Aromatherapy is a natural way to boost energy, so being productive consistently throughout the day is a more attainable goal.

6.Have a Maintenance Plan

Clean up your office space at least once a month, or at least take some time to sort things. During this monthly maintenance, discard supplies you don’t use. Review what is irking you during the work day and slowing you down, and adjust the workspace accordingly. Clean up the desktop at the end of the day as well; it will enable you to start fresh the next day.

7.Experiment with Configurations

Many offices for lease use traditional cubicles. These allow for more privacy and minimize distractions from other co-workers. An open layout provides more opportunities for employees to socialize and collaborate. For some, this concept inspires creativity; however, it can be distracting for others, as the work environment tends to be noisier.

8.Ditch the Paper

Storing everything electronically (and of course backing it up) is not just efficient. It also reduces the mess, while helping your office look neater. Using less paper means fewer pages to sort through for information. You also spend less on supplies.

9.Maintain the Digital Workspace

Organizing your computer file system, and deleting documents, files, and folders not used, is as effective for productivity as keeping your desk in order. Set up a system for managing e-mail. Tend to the bookmarks in your web browser too, and you may be surprised at how much more productive you can be. Organizing all your computer media and documents can save lots of time.

10.Keep Some Food Nearby

Working and eating are not often mentioned together, but the idea is worth mentioning. Healthy, nutritional foods such as vegetables, fruits, or even protein bars help raise the energy level. Snacking between tasks can therefore boost your productivity. Avoid sugars and fats, though, as these can perk you up for a short time, then cause you to crash.

Finding sufficient commercial property for rent is one step to setting up an office. Optimizing it for productivity is a separate challenge. These tips are proven to save time and help people work more efficiently. You could be wasting valuable time by not optimizing the workspace, minimizing distractions, and giving yourself the opportunity to be comfortable.

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10 Tips for Renting Your First Office Space

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Making the decision to rent a new office space is undoubtedly an exciting achievement you should be proud of. If you have a need for an office space, you’re more than likely making a name for yourself and growing your list of clientele. But before you dive in and make the decision to rent just any office space, it’s crucial to take the time to consider your options. Here are ten tips to help you find the best office space for lease.

1.Choose a Central Location

Choosing a centralized location for your office leasing is an important part of the renting process. Maybe you love the scenery and peacefulness of working in the country, but will your employees be willing to make the drive out of town? Will your clients be willing to travel outside of the city? Does the location have enough desirable amenities such as coffee shops, retail stores, banks, and restaurants?

Additionally, you should consider the hiring of future team members. Which cities and locations will allow you to search for the most talented professionals to add to your team?

2.Limit Your Budget

If you find that the most attractive offices for rent are way over your price range, keep looking. Moving into a new office space is meant to help you grow your business and make it more profitable—not bankrupt the company you’ve worked hard to create.

You’ll want to make sure that you have a budget for any additional expenses that may come up. For example, consider the cost of furnishing the office, purchasing office supplies, and the cost of utilities. You’ll also need to find out if any maintenance fees are your responsibility, such as snow removal or de-icing.

3.Know Who Handles the Repairs

When viewing offices for rent, make sure you ask the landlord who is responsible for any repairs the space may require. Is the landlord responsible for fixing any repairs or maintenance issues, or will they be your responsibility? If they are your responsibility, you’ll want to include these additional fees in your business budget.

4.Consider Security Options

office-space-repairMany offices for lease include building amenities such as after-hours security systems, cameras, guards, and other security systems. Depending on the type of business you have, you may feel more lenient about the security level, or you may be more comfortable renting an office space in a higher-security building.

5.Choose an Office with Room to Grow

When you decide on an office space for rent, make sure it’s a space that fits your current business needs with extra space to grow.When you rent your first office, you probably don’t need a bunch of extra offices and storage space, but it may be helpful to have some room to comfortablyhire new employees and expand your team.

6.Decide on a Work Environment

Many businesses are taking advantage of open concept work spaces that help to improve collaboration and office creativity. However, your personal preferences may lean toward closed-off or more private work spaces. Additionally, the layout of your office leasing may depend on the type of work you do.

Before you decide on a new office space, consider the pros and cons to various layouts and office styles.

7.Understand the Parking Space

Imagine finding the perfect commercial space for rent—and then realizing that parking isn’t as convenient as you had hoped. Maybe there aren’t enough spaces, the parking is costly, or it’s detached from the office and would be too much of a hassle for you and your team.

Before you get your heart set on an office space, consider all the parking amenities available for each space. Additionally, you may want to consider available bike storage optionsand nearby public transportation locations.

8.Additional Office Features

Unless you’re considering an office space for lease and nothing more, you’ll probably need some sort of meeting location in the office you choose. Whether it’s a conference room, several smaller rooms, or a kitchen—it’s good to have some additional space in the office for meeting with colleagues and potential clients.

9.Consider the Lease of Your Commercial Property for Rent

The lease of your new office space should be another important factor when deciding on a new property. Renting your first office space can be an exciting but stressful event, so you may feel more comfortable in a shorter lease so you know you can back out if things don’t go as planned. Additionally, you may be better off in a shorter lease if you plan to grow your team and you fear that you may outgrow the space.

10.Know the Penalties of Breaking a Lease

When searching for office rentals, the last thing on your mind may be breaking a lease. After all, you haven’t even chosen a space or moved in yet! However, you never know what the future will bring so it’s helpful to be prepared and consider all your options for renting an office space.

Before you sign a lease, ask the landlord about any penalty fees or additional charges for breaking the lease. The more you know in advance, the better prepared you can be should anything major come up.

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