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austinofficefinderstx · 4 years

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Five Questions You Need to Ask Yourself before Committing to an Office Lease Term

After choosing your company’s ideal office, it’s time to brace yourself for the contract negotiations. For most entrepreneurs, negotiating office space for rent that fits within the budget and addresses all the current and future office space needs for the company is the most complicated part. Below are five questions you need to ask yourself before signing that contract for a short term or long term office lease:

Where do you see the company in the next 5 years and what will that mean to your office space needs?

The ideal office space for your company today may not work for you in two or three years’ time. As such, you need to take into consideration the projected growth of your company in the next 5 years and negotiate accordingly.

Do you need to make some improvements to the office before moving in? If yes, is the landlord willing to pitch in to make those changes happen?

It is very common for tenants to conduct some personalized changes to the office space before moving in to ensure that the office runs as smoothly as possible. When negotiating the terms of a lease, you need to know where the landlord stands when it comes to paying for improvements you deem necessary. In most cases, the landlord might be willing to come to a compromise if you choose to go with a long term lease. For short term leases, be ready to pay from your own pocket.

What is the expected trend in office rental rates during the next 3-5 years?

If the current trend suggests an imminent rise in rental rates during the next few years, it is advisable to negotiate a longer lease term. That way, you get to enjoy today’s rates for, say, the next 5 years.

Does the office location dictate the success of your business?

Depending on your company, you might need an office that is conveniently located near your clients to make interaction easy. For instance, it would make sense for a law firm to secure an office near a courthouse. In such a case, a long term lease would be reasonable. On the other hand, if the location of the office does not have any implications on the success of your business, you can be more flexible with the terms of the lease.

Does a long term lease mean a better deal for me?

The answer is most likely yes! Most long term leases tend to offer better terms as opposed to short term deals. If that is the case, why not sign a long term lease and enjoy all the perks that come with it?

Although the lease period is just one of the many aspects you need to carefully consider during the negotiation process, be sure to weigh in all the short term and long term space needs of your business before signing the contract.

#office space for lease #office space rental agency #commercial office space for rent

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austinofficefinderstx · 4 years

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Does Your Commercial Office Space Measure Up to Your Expectations?

Knowing the exact measurements of the usable or rentable portions of commercial real estate buildings is very important for both the owner and the tenants. Most commonly, the rate for commercial offices are computed on a square footage basis. For the owners of rental premises, knowing the accurate available floor space is vital so the property will not be undervalued. For tenants, an accurate computation of the useable area of the lease unit is just as important to avoid over payment for that location. Following are some space assessment techniques that can be used.

Measurement Methods - The method of measurement used by realtors varies depending upon the location of the buildings. For example, commercial property located in regions such as New York City as well as parts of Connecticut and New Jersey use the Real Estate Board of New York (REBNY) standard. Real estate properties located in Washington D.C. and other nearby regions, such as Maryland and Virginia, are measured using the Greater Washington Commercial Association of Realtors (GWCAR) standard. Another preferred and more widely used method of measurement is the Building Owners and Managers Association (BOMA) system.

Building Plan Calculation - For all these systems of measurement, the building plans may be used as a convenient way to calculate the area to be rented or leased; however, when building plans are unavailable, then the realtor will have to actually hand-measure the office space.

Other Types of Calculation - To get an idea of how office premises can be accurately sized by hand, a real estate broker would have to measure the length and width of each room using a measuring device of some kind. The figures are then multiplied to determine the square footage of the room. If the office space is composed of several rooms, it is important to draw the space on a sheet of paper to get a thorough computation. Include hallways, bathrooms and closets that are within the rented area so that they will be included in the computation. Add all of the space together to determine the rented space in square feet.

Read More: Does Your Commercial Office Space Measure Up to Your Expectations?

#office space for lease #office space rental agency #commercial office space for rent

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