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8 Steps to Leasing Office Space

Steps to Leasing Office Space

Looking for office space? For any Tenant looking to lease office space, the end goal will be to find the right space in the right location and then secure the best deal possible (both from a rental rate and lease negotiation perspective) that satisfies their business needs. To help Tenants achieve this HelpMovingOffice has put together this 8 Step Guide to Leasing Office Space.

Step 1 - Hire a Tenant Rep Broker
The first stage in the process of finding the right office space is to engage the expert services of a Tenant Representative Broker to guide you through the whole office leasing process and help you find that right property and then secure the best deal. Hiring a Tenant Rep Broker is free for the Tenant.

Step 2 - Calculate your Office Space Requirements
Before you can begin the search to locate suitable properties for your business you need to establish your office space requirements. Your Tenant Rep Broker will be on hand to assist you with this - but when determining your operational requirements for office space you should consider: size of office space required, best location of property, budget, amenities, and timeframe. Remember to think 3 to 5 years ahead as to how you see your business developing. Do your requirements allow for business growth and flexibility?

Step 3 - Search for Office Space
Once your business has determined its requirements, the search for all suitable properties that match your needs begins. The process here is to survey the whole market in order to locate all suitable properties. This is an extensive process and your decision to hire a Tenant Rep Broker really comes into its own from this stage on. They are experts in the local market and will have access to details of every office space that is on the market that might suit your needs (and probably some that are "off market").

Step 4 - Touring Suitable Office Space
Once your Tenant Rep Broker has submitted their report to you (outlining details of suitable space) you need to go and see the long-list of options (this is called touring). You are likely to see a number of potential space options so you'd be advised to take notes (and pictures) to help you remember them. The end goal of the Tour is to narrow down the options to, ideally, 3 spaces that satisfy your requirements. Identifying 3 options provides you with leverage which your Tenant Rep Broker can use at the negotiation stage.

Step 5 - Submitting Proposals to Lease and Negotiation
Once you have identified a short list your Broker will then provide you with a detailed cost analysis on these preferred options (to help you assess the pro's & con's of each). They will then make the necessary proposals to lease, review the responses from the landlords, help you evaluate the offers and then (by using their understanding of the office market in terms of office rents, lease lengths, terms & inducements being offered) they will negotiate hard on your behalf.

Step 6 - Space Planning & Office Design
Tenants would be well advised to get their Office Design Company to accompany them on a tour of their shortlisted properties before they go firm on which space take. Why? Because your office design company can provide invaluable advice & insight into the suitability of each shortlisted space in terms of space planning & office layout issues (which can usefully contribute to your decision as to which space is going to work best for your business).
Anyway, once your business has agreed on the right space for your business your Office Designers will get to work on how best to create the right office environment for you (one which showcases your brand & culture - and allows your staff to be as productive as possible).

Step 7 - Negotiating the Office Lease Agreement
The office lease that you will sign is a legally binding agreement that sets out the terms & obligations that will govern your tenure at the property. It needs to reflect the detail of the deal that has been agreed between you and the landlord - and will set out all areas of the landlord/tenant relationship and detail, precisely, what each party's rights and obligations are with respect to the office property.
It is business critical that you get independent legal counsel (from a Commercial Real Estate Lawyer that specializes in representing tenants) to review each and every detail of the lease agreement and then negotiate on your behalf to ensure that your company's best interests are maintained. This phase of the process can sometimes feel laborious - but it is essential that every term is meticulously examined to avoid any problems further down the line (all of which are likely to be costly for tenant).

Step 8 - Close the Deal
Having successfully navigated your way through steps 1 thru 7 the transaction can be executed. Please note that, when it comes to finding the right office space - and then negotiating the best deal - having a good Tenant Rep Broker and Commercial Real Estate Lawyer on your team will not only make sure you don't make any critical mistakes but also save you money over the term of the lease.

For more information on leasing office space refer to the free Tenants Guide to Finding Office Space. Tenants that hire Tenant Representative Brokers pay LESS for their office space.


Planning an office move? Go the office relocation planning resource center

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