Navigating office space leasing can be very difficult for new business owners or for those relocating their business to a new city or state. You need a place to operate out of, but you don’t want to find yourself entangled in a rigid, inflexible lease. Furthermore, in addition to leasing dilemmas, location is a big factor renters must consider when looking for a place to run their business from.
Whether trying to land the best leasing deal or looking for a space that generates traffic, wary renters can prepare ahead of time by researching all of the information on offer to avoid the usual pitfalls associated with leasing office space. The best way to walk into a lease that meets your needs is to understand the lease and to explore all of your options. You might be surprised to find that some of the best rental agreements land business owners on some of the most prestigious avenues in some of the most thriving business districts in America.
Keep reading below to find out why you should know about leasing office space and how to learn about the various options in office space rentals.
Leasing office space provides professionals with a lot of freedom in running a business. At the same time, leasing comes with the responsibility of knowing that the document is a legally binding contract, whether the stipulations in the agreement are agreeable or not. Commercial leases differ typically from residential leases in that they have fewer consumer protections.
Before signing a lease, review information as it relates to the length of the lease including its renewal options. Pay attention to what is included in the lease, as sometimes landlords will pay for the utilities, property taxes, insurance, and other amenities. With these agreements, the rents tend to be a little higher, but your rental budget is consistent monthly.
On the other hand, rentals that do not cover amenities tend to be less expensive. Because the amount of your utilities and other bills varies from month to month, you might pay more over time. In this case, find out exactly what you will be paying for in terms of property taxes, insurance and maintenance.
Make sure you know exactly what space you are renting and who to contact if the space is in need of repair or modification. Before signing a lease, ask the landlord where the common areas are and who is responsible for the upkeep of these areas. Make sure to find out who to contact in case something needs to be repaired. In case the place needs to be modified, be aware of who has to pay for these changes.
Today’s business environment offers renters a number of office leasing options. If planning to do business in the area for a while, you might consider a conventional lease. Most landlords will ask that you commit to leasing the property for at least a year. For lower rates, landlords might ask renters to commit to a longer time, ranging between five and seven years. In addition to the standard deposit which can be quite expensive, renters should plan to set aside a large amount to cover initial start-up costs. Renters also have leveraging power in that when the vacancy rates are high in an area they have the advantage of bargaining for a lower price.
Business owners on a tight budget have alternatives to the traditional office plan as well. Serviced office providers offer business owners with a variety of options in finding space. An executive suite, virtual office and co-working space offer business owners the ability to lease facilities, such as meeting and conference rooms and private offices, and all the necessary amenities on a month-to-month basis. These plans are attractive for start-ups, the self-employed, and any business that needs room to grow because the leases are easily modified. Plus, they can be transferable making them a great option for those looking to expand to new markets and locations.
Research and Find the Right Office Space for Your Business
Searching for a lease that is going to meet the demands of your business is not as difficult as you might think when you have a plan and do the right research. Fortunately, for many business owners, the internet makes it easy to research various prime addresses across the States. You can also get in touch with other business owners to find out how their experience was in any of the locations you are considering.
Alternative leasing options can give you more flexibility than a traditional office setup while keeping control over your monthly expenses. Making the right decision for your business can seem overwhelming at first, but with the right research, you can easily find a lease that meets the needs of your business to grow and expand with confidence.
About the Author:
Alexandra Richards is an Australian business consultant, located in Perth. She takes a keen interest in the work culture and business structures of Perth based businesses. She has recently been working with Servcorp to help deliver tailored solutions to local businesses.