Finding an office space can be exciting and a good turning point for any type of business. Make sure that your office will support your team and allows your company to grow even more. Below are tips to consider before renting an office space.
Know your business needs
Once you found the nice area for your office location, know the rental rates on the place you wish to operate your business. Be specific and get to know the cost per square meter of the area before making your final decision. Consider the space you need and how can it make your business operations smooth and manageable. Elevators, hallways and restrooms must be available for all your staff. Talk with the landlord on how they measure the space and what are their terms and conditions in rental increase. Having a clear set of your needs can make it easier for you to choose and settle with the best space that your business needs to operate.
Review rental rates
The building owners must be able to present to you all the information regarding the building, a fixed percentage of rental increase and the total amount to be paid either monthly or annually. Make sure that you will only pay the right amount. If you are not sure about the figures and possible rent increases, consult with your property managers and ask for their guidance before you make a final step. Do a comparison for all the buildings that you have asked and make sure that your company have the ability to pay for that amount of rent.
Understand leasing terms
There will always be short and long term lease agreements when renting a commercial space. Real estate agents will help you go through with it bullet by bullet and understand fully its benefits and drawbacks. Aside from security, long term lease can give you the ability to maximize your business. Short term lease somehow can make you decide easier if you will renew the lease once it expires or you can move to a bigger space once you feel the need of it. So make sure that you have understood all the terms as it can make or break your company.These are the following usual lease terms and conditions that you have to consider. Security of tenure for your desired length of time to stay, rental rates for the entire duration of lease, provisions that allows the company for its daily operations, provisions that allow you to operate and generate profits, protection from local competitors with the same business especially if you are in an area where everything is owned by only one landlord.
Maximize your rights
Before having a finalize agreement with the landlord, make sure that Right of assignment clause is included to your lease. It will be useful in the future as you can transfer the lease to a new tenant just in case you decided to move. Take note of the options that you can renew the lease; you can expand the space if needed, rules in lease termination, penalties and a lot more. Make sure to build up and keep up a good tenant landlord relationship for a worry free business operations. And again, if everything is unclear, seek the help of professionals to enlighten your mind for your space rental.