Negotiating in Office Leasing, the Perfect Office Space

The <a title=”Office space at Royal Commercial!” onClick="javascript:pageTracker._trackPageview('/outgoing/article_exit_link');" href=http://www.royalcommercialcorp.com/resources/office-space.php>office space</a> that you work in every day is one of the largest expenses for your company. One way to control this cost is to shop around and utilize some simple negotiating skills to get the best <a title=”Office leasing at Royal Commercial!” onClick="javascript:pageTracker._trackPageview('/outgoing/article_exit_link');" href=http://www.royalcommercialcorp.com/resources/office-leasing.php>office leasing</a> option. If you can take some time to get yourself into a good lease you could save your company enough money to make a very big difference.

No office lease is standard so you need to negotiate with each one. The term of the lease is one of the first concessions when you are negotiating. Your needs may change over time so keep this in mind when thinking about how long you want to stay in the same location. Also think about how much space your office has available. Make sure that you have enough room to grow if necessary.  You may also want to consider getting the option to renew your rent at a fixed predetermined price. Think about the time you will need in the space but also about the time you may want when your lease is up.

Look into what the landlord charges for the extras. Some of these items may be maintenance, HVAC, general operating costs, repairs, improvements or replacements. Some leases may require that you return the office to the condition it was in when you first moved in.  It could be to your benefit to get a cap on the amount you are charged for all the extras because they can add up rather quickly. Improvements in the space may also require their buyoff so make sure that you understand what the lease says regarding their approval to change the space.

Unfortunately, you can’t generally negotiate a lease with a fixed rate over a long period of time. Usually there are annual increases based on a specific percentage. Perhaps you can negotiate how many years it is before this kicks in or think about asking if you can get a cap on the amount of the increase or maybe a set amount each year rather than a percentage.

Think also about the flexibility you may need in your space if you think you may need to undergo a merger, reorganization or subletting. There are so many things that could change in the years to come and it is important to consider all the options when signing your company up for a new lease. This can really make a difference in the future.

Negotiation will be the key to success when getting locked into a lease for your company. Take the time to study up on some of the areas that you can ask questions. Study the fine print so that you know all the options you have in the building and with your office space. If you are locked into a lease for 5-years you never know what might happen in that time. Plan ahead – project where you think you might be in that amount of time. Look into how you might grow and change so that you can predict the best lease possible. Don’t be afraid to ask for what you want – you might just get it.