Commercial leases are often longer than residential ones, sometimes lasting as long as 10 years. It’s important to read and thoroughly understand any lease before signing. As a business owner, you should familiarize yourself with the clauses and provisions most commonly found in office leases. Here are a few things to consider when selecting commercial office space for rent.
Operating Expenses
When you sign a commercial lease, you’ll typically be paying operating expenses in addition to base rent for space. These operating expenses can vary widely depending on the building you’re in – and your landlord. Paying these operating expenses is a necessary cost of doing business.
It’s important that each operating expense you’re being charged for is clearly defined in the lease. Any room for ambiguity can lead to unnecessary misunderstandings. Some of the most common operating expenses include utilities, waste removal, building maintenance, landscaping, and property taxes.
Square Footage
Another important thing to look at when signing a lease is the square footage. You’ll want to make sure that the square footage correlates with your needs. Of course, it’s difficult for any company to use the full extent of the square footage they’re given, as you may be limited by office configuration or architectural features of the building.
Rent
It’s normal for commercial tenants to see rent increases over the course of their lease. This is because the cost of running a building goes up over time. However, it’s important that the method for calculating rent increases is clearly defined in your lease.
The Takeaway
When looking for an office space to rent, it’s important to make sure that it’s a truly great fit for your company. Office rentals can be a big investment, particularly for small and growing companies. Before signing a lease, you’ll want to feel completely confident that your new office space is going to provide real value for the money.
