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Securing a Tenant-Friendly Office Lease Agreement

How to Negotiate a Favorable Office Lease Agreement

An office lease agreement is one of the largest contracts a business owner will ever sign, so it's important to give the lease terms a great deal of consideration before you even reach the negotiation stage. In this article, you will find top tips on how to negotiate a tenant-friendly office lease.

Set Clear Expectations
You need to be clear from the outset about your leasing requirements before you start the negotiating stage. Decide which issues will be non-negotiable and those which are "nice-to-have". This will help you work out what you are going to stay firm on, and what you can afford to compromise on. Remember that any lease is initially written in favor of the landlord, but don't be intimidated by this - negotiate what you can, otherwise you'll never get anywhere close to your expectations.

Hire a Tenant Rep Broker
Always hire a Tenant Rep Broker to negotiate the lease on your behalf. They are used to negotiating deals with landlords, and they will only act on your best interests. Having someone else negotiate the lease on your behalf will save you from getting too emotionally involved in the detail of the lease. Tenant Rep's are typically paid for by the landlord when a lease has been finalized, so you have nothing at all to lose in using one.

Negotiating the Rent
Make sure you are clear as to how the rent is being calculated in the lease. Typical rent calculations may include gross leases - where rent is stated as a flat monthly amount and includes all operating costs, triple net leases - leases which pass on all the operating costs of the building to the tenant. Operating costs typically include real estate taxes, insurance and maintenance. Talk to your Tenant Rep Broker to find out which type of lease will best serve your business and financial situation.

Legal Issues
Always make sure you use an attorney that specializes in commercial leases to review the legal issues of the lease that relate to your business. This will be beneficial to avoid any future disagreements and is a good way to verify whether anything important has been missed off.

Find more tips on negotiating your office lease with the Office Space Checklist. It details all the practical considerations when choosing office space, and what inclusions you should negotiate hard on relating to your office lease.

If you need to find a Tenant Rep Broker to negotiate a tenant-friendly office lease on your behalf, simply search our listings in your area here.

 

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

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