A Simple Guide to Leasing Commercial Real Estate
Whether you’re getting ready to move to a larger office space or planning to add a second, third, or fourth location to your portfolio, there is a lot to consider when it comes to commercial real estate leasing. Keep the following tips in mind as you move through the process to ensure the best outcome and make the process as smooth as possible: 1. Start the Process Early The search and negotiation for commercial real estate takes much longer than most companies think. Ideally, depending on the size of your requirement, you should begin thinking about...
Continue ReadingConsidering a Relocation? A Guide to How Much Time You Need
Market conditions, the size and complexity of the transaction, and option notice dates can help determine when to begin the process of evaluating your office lease. Time should be your ally, not your enemy during negotiations with any landlord. Landlords know that other buildings you’re considering will most likely have to create a space plan, get construction pricing, agree on a rental rate, prepare and execute a lease document, apply for construction permits and prepare the space for occupancy. This is, at a minimum, a 4 to 6 month process. So a tenant that waits...
Continue ReadingExplore Your Alternatives Before Exercising Your Lease Renewal Option!
Each lease expiration should be viewed as an opportunity to explore and develop alternative space options. Only after an exhaustive search can the decision to either renew or relocate be made with confidence. Needless to say, this can be a lengthy process which should start well in advance of the lease expiration depending on the size of the requirement. If your first choice is to renew, this process will provide the much needed leverage you will need when negotiating with your current landlord. Most commercial leases typically run between 5-10 years. In well negotiated leases...
Continue ReadingWhy You Need An Exclusive Tenant Representative
Leasing Commercial Space is a Risky Approach On Your Own… The process of securing commercial space for your organization, whether it is a new location or extending a lease in your current building,...
Continue ReadingCommon Mistakes to Avoid in Commercial Real Estate
Many companies have the view that leasing commercial property is a lower risk than purchasing property – there are fewer worries about depreciation, taking on debt and other concerns when you’re using space without buying it. While it may be true that choosing to lease your office space or building spares you from certain worries, there are still risks involved. To help ensure that you choose the best space and get the best possible leasing agreement, be sure to avoid these deadly, all-too-common commercial real estate mistakes. Going in Blind You would never think of...
Continue ReadingRent is Just One Component of Occupancy Cost
Understanding and correctly calculating your occupancy costs is obviously necessary for managing your company expenses. However, if you’re not sure what the various components are that contribute to your overall costs besides your rent, it’s easy to underestimate those costs. Review the following items with your tenant representative to understand what they are in calculating your real occupancy costs. Common Area Maintenance (CAM) Maintaining the common areas of your building is the responsibility of the property manager but your company will pay for covering the costs of it. Typical fees include parking lot maintenance, snow...
Continue ReadingThese Lease Terms Provide Options
After a lengthy search, you’ve finally found the perfect new office space. It’s so great that, in fact, you’re not sure if you should lease or purchase the building. To put you in control, negotiate in your lease options to buy the building if you decide you want it. You can also stop someone else from purchasing it as well. These options, listed below, give you a measure of control and let you avoid the costs and responsibilities of ownership if you are not yet ready to take them on. Option to Buy This negotiated...
Continue ReadingCompanies Are Doing More with Less Office Space
One of the many goals when leasing office space is to look for efficiencies in the space. Not that long ago offices were averaging 200-250 sf per worker. In 2017, North American offices will average 151 square feet per worker, according to real estate data provider CoreNet Global. Advancements in technology and a changing, more flexible workforce are making that it possible to achieve much higher levels of efficiency. As an example, we’ve listed three particular types of businesses below that are re-evaluate their space requirements. These types of companies can operate efficiently and with...
Continue ReadingThe Unique Requirements of Leasing Medical Space
Physicians and medical offices have unique space requirements and compliance issues. They don’t usually move or relocate as often as other commercial tenants. Hiring a broker familiar with these requirements is a necessity for the medical profession. The tenant representative understands how to structure the lease agreement to fit the unique needs and compliance requirements of the healthcare provider. Listed below are some of these issues. Medical use issues: Medical tenants use hazardous materials and generate bio medical waste. Toxic radiation is generated from x rays, scanners and other machines. A tenant representative can ensure...
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