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Office Leasing Guide - Common Tenant Mistakes

Common Mistakes made by Tenants when entering Office Lease Negotiations:

      1. Starting the office lease negotiation process too late
This means there is insuffiient time to negotiate a good deal with the Landlord. Ensure you give yourself plenty of time to find the right office space and allow enough time to negotiate the best possible office lease transaction.

      2. Lacking clearly defined objectives
Tenants who are not clear about their financial, space or operational objectives, fail to secure a good deal on their office lease.

      3. Failing to Appoint a Tenant Rep Broker
Tenants who try to find their own office space and negotiate their own office lease are in a losing battle from day 1. Find a Tenant Rep Broker who can represent your company's best interests, know the market inside out and have the right office lease negotiation skills.

      4. Inaccurate Office Space Calculations
Having a clear understanding of how much office space you actually need should be the first step in your search for the right office space. Too much space and you'll pay over the odds - Too little space and you'll outgrow it too quickly. Use the Office Space Calculator to work out your exact requirements.

      5. Running out of time to fulfil Retrofit Obligations
Most office lease have a retrofit obligation which requires the tenant to put back any alterations they have done to the property before handing back over to the landlord. Some tenants leave this all too late and it ends up costing them money. Plan your retrofit with your Office Design Company well in advance of moving out.

      6. Not taking Legal Advice
Whilst your Tenant Rep Broker negotiates the office lease on your behalf, a Real Estate Lawyer will see to it that your legal interests are protected and that you understand every clause and financial implication of the lease.

      7. Indecision
If you are too indecisive about the property, you could end up missing out on potentially good opportunities. Whilst you don't want to jump on the first good lease offer, it's also important to spot a good deal when you see it.

      8. Not allowing enough room for growth
Many tenants fail to take into account their business growth plans by the end of the office lease. Tenants should allow an additional 10% of future business growth when calculating office space requirements.

      9. Focusing on cost alone
The cost of your office space is a crucial consideration when signing an office lease, but there are other factors you need to consider to ensure it adequately fulfils all your business objectives. Use the Office Space Checklist to find out all the areas you need to consider when choosing office space.

      10. Lacking knowledge of future opportunities
Often the best office lease deals are secured before the office space is even on the market. Your Tenant Rep Broker will have intimate knowledge of all these, so ensure the off-market properties are considered alongside properties that are currently available.

 

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

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