Before you begin looking to lease office space, you need to know what your budget is and what size space you need. When talking to Adam and other office space experts, paying too much for rent (more than is affordable based on your business income) and having the wrong-sized space (either too small or too big) were the two most common mistakes they saw tenants make when leasing.
- Figure Out How Much Space You Need
Knowing how much space you need will also really help narrow down your search for office property.
- Find a Broker who has Office Leasing Experience
There is no substitute for local knowledge. That is why local brokers are still the top option for locating and leasing office space. In fact, one of the rookie mistakes of commercial real-estate leasing is trying to do it yourself. Hire a broker. They have invaluable expertise, knowledge, and connections that would take the average business owner years to gather.A local broker should have an in-depth knowledge of your area, and might even have previous experience working with the landlord.
- Find 4-5 Quality Office Space Options
You do not want to limit yourself to one option right from the beginning. Instead, find 4-5 options that could work and then compare-and-contrast them to one another to determine the best fit.
- Select The Office Space That is Best For Your Business
Once you have located 4-5 quality options, you will go and visit each location with your broker to see what the space actually looks like in-person. The most important considerations when selecting your office space are cost, size, and location. Since we have already touched on cost and size, let’s talk about location.
- Negotiate Your Lease
- Read the lease terms/contract carefully. It is important that you read through the lease contract very carefully. If there are parts you do not understand, have your attorney explain to you what they mean.
- Negotiate Build-in Clauses that Protect Your Business. There are certain clauses that can be included in your lease contract that will help protect your business
- Make Sure the Contract Has Clear Expectations Concerning Building Occupation, Build-out Period, and Source of Truth. You need to know when you are supposed to move in, how much time you have to remodel the space (hopefully at a discounted rate or rent), and what document will be consulted to settle disputes between you and your landlord. These all should be clearly spelled out in the lease contract.
Leasing office space is a fairly complicated process. If you follow the 5 steps outlined above you will be well on your way to finding and leasing the right office space for your business. If you have questions along the way just drop me a comment in the comments section. I’m happy to help.