Things You Should Know Before Leasing Office Space

Written by chicceo Published in

We try to find answers whenever possible and we were recently asked for information on finding the right office and retail space. So we did some research and got some great advice from an expert. Here's some information that you should know before leasing office space:

1. Ask about their experience.  There are a lot of talented brokers out there but more inexperienced brokers than experienced. Ask specific questions about the submarket you are interested in leasing space in to make sure they equipped with the information needed to get you the best possible deal.

2. Make your broker work for you.  When interviewing brokers, look for the one who will go the extra mile for you, negotiate on multiple locations etc. Brokers can make a lot of money in this business without putting the necessary amount of work into it.  Don't fall for "trust me this is the only space you need to look at", sometimes that third or fourth place option can become number one after the negotiation process is over.  

3. Who will stick around after the transaction is over?  Lots of brokers handle your transaction and then you don't hear from them again until the year before your lease expires.  Questions constantly come up and you should feel comfortable to reach out and ask the questions you need answered to stay up on your lease. Buildings continually change, and just because you are in the middle of your lease agreement doesn't mean something can't be changed to benefit your company.

4. Space Plan! I cannot express how important it is to choose a broker who can walk you through a space plan, and effectively push you for efficient space. In other words, get someone who wants to get you everything you need to succeed without a square foot more. It is no secret, that the more square footage you lease and the more you pay, the more your broker gets paid.  If your broker is legitimately fighting for your best interests, you will know, and if they are not, you will DEFINITELY KNOW.

5. Make sure your broker prepares a Financial Analysis, done the right way.  There is nothing worse than having someone email me and ask why the rent their broker showed them is less than what is in their lease.  More and more I see brokers showing the average of base rent minus free rent.  Understanding the financial impact of a gross lease, versus modified gross lease, core factor and operating expense escalations is crucial when planning the financial success of your company.  Lets not forget to mentions, phones, internet and IT.  

1. Comparable's to the space you are considering leasing.

2. A budget for any and all costs associated to leasing space.

3. Clearly defined space plan and pricing of construction outlining the scope of work being done to your space.

4. Preliminary negotiations with multiple options.

5. Strategic Planning with a transaction timeline.

1. Frontage of space.

2. Ingress and egress.
3. Demographic Study pertaining to your business.

4. Traffic Counts – Cars versus pedestrian, morning versus evening.

5. Signage – Monument, Way finder, Building.
6. Who are you neighbors inside/outside of your location and do they add value or reduce value to your business.

7. Visibility – Can people easily find you, or continuously see you? This information should at least give you a starting place so you can do more research.

Been through the process and have some tips to share? Sign in and leave a comment below.

This information was provided by:
James Langley

Schwartz Commercial Realty
Follow us on Twitter @SC_Realty


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