Are you planning to buy your first office? Or is your business expanding and you are falling short of space?
Whether you are selecting your first office to set up your business or relocating your operations or expanding your scale you should think wisely. A lot of factors have to be considered before finalizing a commercial lease. Choosing the wrong office lease can hamper your business growth.
To avoid issues related to lease, commercial real estate Corpus Christi agents have compiles a few useful tips that should be considered when looking for office space to lease.
Have a thorough knowledge of the area where you plan to start your business operation:
Location plays an important role in success in business. So before entering into a lease agreement explore the neighborhood, submarkets, and accessibility.
- Businesses dependent on walk-in-customers should have sufficient parking areas with proper security for customer convenience.
- A retail outlet in the outskirts will make no sense. Choose an area that is easily accessible to customers.
- For manufacturing units and factories, connectivity with suppliers and transportation facilities should be considered.
- The office should be within easy reach of the staff. Commuting for long hours will make them tired and lower their morale.
- The area should not have any zoning restrictions.
Find out what amenities are available:
After deciding on a location, make note of the amenities available in that area. An office close to a restaurant, coffee shop and the gym is appreciated by staff and clients. Banks and meeting spaces that need to be visited regularly as part of business operation should be in close vicinity.
Tour the office space:
After choosing an office space take time and tour each part of the office space. Analyze how the office space will affect your brand. Find out if there is enough space for holding small meetings and conferences. Visit all the shared areas in the building especially the parking lot. Revisit the office space during different times of the day. See how crowded the elevators are during peak hours. Ensure how safe and secure the area is at night and on weekends.
Estimate a budget for your office space:
As the location is important, the cost is also a major factor to be considered. Do not choose an overly expensive office. This will increase your business debts and hamper its growth. If you have a tight budget then it is recommended to search office space outside the central business district. Also, make sure that after paying the lease amount there are enough funds left for utilities, furniture, and décor.
Hire a professional commercial real estate:
Finding an ideal office space is time-consuming. Hire realtors in Corpus Christi Tx who are familiar with the properties in the area you wish to lease. A tenant rep broker is experienced and knowledgeable in this field. He will help you in understanding the lease documents and also negotiate with the landlord. Also, the best part is that he is paid by the landlord.
Read and understand the entire lease agreement:
A lease document is lengthy, uninteresting, and also difficult to understand. But real estate companies in Corpus Christi will help you in understanding the entire document word by word. Check the start date, lease length, rent amount, rent due date, and any late payment charges. Take care not to enter into a long-term commitment, as you are not sure when your business may outgrow the space or decline. Also, ensure that all special terms that you have negotiated are included in the agreement.
Find out whether the lease is assignable or you can sub-lease:
Assignment refers to the right of selling your business along with the lease space. Usually, landlords terminate the lease if you ask for an assignment. As the sale value of a business increases along with its space, it is better to negotiate the assignment term with the landlord. Also, find out if there is any restriction on sub-leasing and negotiate the same. Sub-leasing refers to leasing the extra or the whole space to another business under your lease term. In case of expansion or in affordability to pay rent subleasing should be allowed.
Ensure who is responsible for bearing repairs:
Repairing damages usually incur a huge expense. So make sure who is responsible for those expenses. If the landlord has to pay for the repairs then ensure that repairs are done promptly.
Understand the CAM terms:
CAM terms refer to common area maintenance. You are usually responsible for paying the maintenance fees for only those areas that are used by you. Also, these charges are based on the percentage of buildings used by you. The CAM terms are quite confusing and should be properly understood with the help of commercial real estate Corpus Christi expert agents. Check if you are not paying for any fees related to landlords’ marketing fees or legal fees concerning other tenants. In many leases, you are responsible for paying property taxes and repairs and maintenance costs of the property. In such a case you can ask for a CAM stop lease where you will only have to pay for an increase in CAM fees and property taxes above your initial lease period.
Check for arbitration clause:
Negotiate with the landlord to include arbitration clauses in the lease agreement. The arbitration clause states that any dispute between the two parties will be settled through arbitration and litigation without going to court. Ensure that you have the right to choose your arbitrator. Also, there should not be any legal action if you break the lease by making an early exit. The matter should be solved only by paying a penalty, the amount of which is within your reach.
No restriction on alteration:
You would like to design your office as per your needs. Check if the landlord has not imposed any restriction on alteration, especially when the alteration requires the breaking of walls and completely changing the interior.
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Moving into a new office sets a milestone for growth and prosperity in business. Choosing the wrong office deal will close the doors of progress and prosperity. So choose an office space after viewing each detail. And before signing a commercial lease, read it thoroughly and understand it properly by consulting experienced realtors in Corpus Christi Tx.