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What length of Office Lease is right?

Office Leases Uncovered - how long is right for your business?

There are many things to consider when deciding how long your office lease should be. It is, ultimately your choice, but taking advice from a Tenant Rep Broker and a Real Estate Lawyer may influence your decision. They'll be experts when it comes to knowing what length of office lease is most suited to the needs and financial constraints of your business.

As with most things, there are two sides to every story. Here's what you should factor in when it comes deciding on the right office lease length:

Office Lease Length: The Landlord's perspective

Landlords prefer longer office leases because it means they are guaranteed income for a longer period, thus safeguarding their mortgage. So opting for a longer office lease will give your Tenant Rep Broker great leverage and negotiating power when it comes to the inclusion of tenant incentives and persuading your Landlord to contribute towards some of the office build out project.

Office Lease Length: The Tenant's perspective

Not all tenants are the same, and in fact each business will have their own unique requirements and financial limitations. The important thing to remember though is not to overstretch yourself and commit to a longer office lease length than you can financially afford. If you do anticipate substantial company growth, then it may be better to opt for a longer lease length with the inclusion of a break clause to give yourself the option of a "get out" if your circumstances do change.

Think carefully when deciding about what office lease length is most suited to your business, but always bear in mind that you have to consider both your current position as well as your future growth plans, before deciding what to do.

Always contact a Real Estate Lawyer, let them have a copy of your Office Lease and seek advice as to what the best options are available to you.

If your company is looking for new office space be sure to refer to the Office Space Checklist. It is a free guide packed full of information and tips to help you get the right office space for your business.

 

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