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Office Leases: Tips for Tenants

It can be daunting signing an office lease, particularly if this is your first one and you don't quite know what to expect. The rent of your business premises is, after salaries, likely to be one of the highest costs for your business operation, so it's worth investing some time in working out your lease priorities in order to negotiate the right lease terms for your business.

These office lease tips for tenants will put you in the best position of a favorable outcome and getting the best terms for your lease:

Remember that everything is "negotiable"
It can be daunting reviewing the first draft of the lease that's put in front of you, but it's important to remember that everything's up for grabs at this stage. This is your opportunity to put forward your "wish list" of what terms you want included. Make sure you are clear about what YOU want out of it.

Hire a Broker
You'll need to hire a Tenant Rep Broker, not only to show you what properties are available, but also to negotiate the lease on your behalf. Discuss your requirements and priorities with them at an early stage in the relocation process, and leave the negotiation tactics to them who have the experience and knowledge to bring a favorable outcome for your business.

What can you Afford?
Commercial office leases are calculated in a rent per square foot basis. This means you need to be clear about what size of office best suits your needs. Use the Office Space Calculator to help you. Your broker will assist with these calculations, providing information on what similar tenants are paying in the area for an office of that size.

Keep Options Open
Avoid getting too emotionally attached to one property. If a landlord realizes a tenant is hopelessly committed, he's unlikely to be flexible on lease changes. Negotiating several properties at the same time will leverage your negotiating position and gives you options to fall back on.

Hire an Attorney
When you reach agreement stage, the landlord's agent will draft the final version of the lease for you to sign. This must be given to a Real Estate Attorney to review. It will give you the last opportunity to ensure everything has been correctly documented and that your interests are protected throughout your occupation in the property.

To help you secure the best lease terms, always hire a Tenant Rep Broker and Attorney for the best possible outcome. Find one in your nearest location here.

 

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

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