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Tags: finance, leasing, commercial office space for lease
 For many years you’ve operated your business from the comfort of your own home. Well probably comfort may be overstating it. After all you’ve probably crammed everything in your garage which is now one huge storage space or in the small room which has for some unexplained reason migrated into your bedroom.
Your idea of a work desk is your dining table and you are literally eating while you work. But finally, you’re moving to a commercial office space for lease somewhere—a sure sign that you’ve finally arrived. This often coincides with the hiring of additional employees other than your wife and two kids or having a growing roster of clients or investors other than your in-laws.
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However, before going out and signing on the dotted line you need to at least understand certain aspects of getting a commercial office lease. To start with don’t go grabbing the first big space you can get. Thinking big is one thing but often new office lease tenants overestimate the amount of space that they need.
Sure they say 200 square feet per employee is advisable but if you can make do with only 150 square feet, you save on the extra amount you need to pay for leasing an office. If there’s only two or three of you why not try sharing space in a business suite fully furnished and equipped.
The office lease rates may be a little high but the use of the equipment helps, especially if you’re still a start-up. And in finding space, it’s not just about location, it’s also about flexibility. If you sign up to a long term office lease agreement you may not be able to get out of it should your business not grow as expected, or grow faster than expected.
Be on the look out for a landlord that has a variety of space sizes in their holdings and who is willing to accommodate you in changing spaces should the need arise. So if your enterprise expands they should be able to move you to a different floor or area so you don’t get constricted.
Even if the landlord is flexible, before agreeing to an office lease with them, check their references first. Talk with their tenants especially about management and how fast the landlord is about taking care of concerns and problems. And don’t get offended if the landlord is not sold on your endeavor.
The same as with banks, you need to convince your future landlord on the viability of your business especially when it comes to long term survival and the paying of the rent—that’s why they will do a thorough background check on you and your business including credit history before they agree to giving you an office lease and take you on as a tenant.
And when you sign the office lease agreement contract, make sure you sparse the boiler plate language that’s included especially the specific terms of your lease—what things are and aren’t allowed. Understand the “work letter” that comes with the contract in which it designates which items the landlord is going to take care of and to what extent—repair or upgrades to the lighting, carpeting, doors, re-painting or re-wiring to accommodate your needs or even the adding of walls or dividers.
And in terms of location, it may be advantageous to set up your business near similar enterprises like yours. Such clustering allows for collaboration between companies that can help, especially if they’re start-ups. And while there is a threat of loss of employees or proprietary information, zoning, parking, cost and space requirements often decides where you can set up shop, much like your competitors.
And finally, run the final office lease paperwork past an attorney. Even if you pay good money, an attorney would be able to advice you on potential pitfalls and prevent surprises.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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