Congratulations on your business. Your customer base is growing, your financials are in the black, and you’re ready to expand your horizons. First stop, you need a commercial space. It’s time to get you set for him even more success. A new space will limit your virtual or home office distractions. It will act as a place to further develop your client relationships and help you reach your next business-related milestones. If you are ready to make the transition and have found a proper space, it’s time to negotiate. If you need help, follow along for more information on how to negotiate a corporate lease.
Where Do You Start?
The first step of the process has nothing to do with the space at all. It’s all about you and your business needs. First, you must establish a budget for the lease and stick to it. Then need to take a look at your business plan and your business goals and see how the space fits into those things. You also need to take stock of how many employees you have, the layout of the properties, and other additional building requirements or needs that you have. You want the space to fit all of your business needs for optimal efficiency and productivity. This should be your priority even before you start looking.
After you find a space that meets all of your expectations, it’s time to figure out what kind of lease is best for you. There are several different leasing options available for commercial spaces. You want the one that’s most advantageous for you. Gather information about the types of leasing options the property owner has available to you. If you can opt for a single-net, double-net, or full-service gross lease. This ensures if there is a problem at the property, you do not hold all the liability. Aside from being knowledgeable about the type of lease you hold, you need to do your homework on the area that you’re looking in. Be sure to check out how much other nearby properties are leased for near the building’s location. This ensures you’re getting a fair price.
Don’t Go Alone
Even with research, it is advisable not to go at this alone. Get representation for yourself via a commercial real estate agent or a lawyer. They will help walk you through the process. When times get tough, they can negotiate on your behalf. If you have a second property in negotiations, they will help you leverage one deal for another. Your lawyer or real estate agent can also help you negotiate base rent if it comes back above your established budget. They can also submit counteroffers that help get you perks, additional protections against competitors, limit early termination fees, and a better cure period.
Read The Fine Print
Lastly, never look over the small details. You must make sure that the lease agreement includes everything you need. Make sure you have addressed the need for a sublet clause, renew conditions, and rules around leasehold improvements. Make sure it doesn’t have any tricky addendums or clauses that were not previously discussed. If all goes well, congrats on your new lease.