The hardest part of moving your office space isn’t packing up the boxes or signing the lease, it’s the physical act of deciding between the possible spaces you love.
Once you have found offices that meet your basic requirements, we know how difficult it is to differentiate between them. Here are a few tips to help you make the big decision.
Look at the Pricing Models: Landlords structure their lease rates in several different ways. The most common are Triple Net (NNN), gross lease and modified gross. NNN is where the tenant pays a lower rent to the landlord and then all additional expenses are paid separately. In a gross lease rate all operating expenses are included in the monthly rental payments. A modified lease is in the middle. Common area maintenance, property insurance, property taxes and water are included in the monthly rental payments but gas, electric and janitorial work is extra.
Look at the lease carefully: Figure out what is included and not included in the lease. Negotiate with the landlord before you sign it. After the negotiations, it will make it easier to determine which office space is the right one for you.
Expansion and Reduction: Realistically, a small business’ profit fluctuates with the economy. This causes some years to be more lucrative than others, which results in the restructuring of your business. Whether you are expanding or downgrading, you need to discuss with your landlord whether this is a possibility.
Construction/Remodel: If you are looking at a space that needs to be remodeled or finished for your specific needs, you need to know not only whether the landlord can do this, but also whether it will go above your price range. You need to ask your landlord, how much he will be willing to cover. The lease term length, business credit and market conditions will impact these factors.
Personal Guarantees in a Lease: Sometimes, landlords require a personal guarantee from the business owner and may refuse to rent the space without one. Decide if you are comfortable with this added liability.
Lease Term: Many small businesses prefer a short-term lease because it reduces risk and increases flexibility. However, there are many advantages to signing a long-term lease including, lower monthly rates, stability, decreased relocation fees, etc.
Now that you know how to further narrow down your possibilities and have negotiated the terms and conditions, you are ready to pick your new office space.
*If you’d like to learn more, please contact us at Greenway Plaza. We are here to help!