Texas Office Advisors

5 Tips For Negotiating An Office Lease

Rough Negotiation1)   Know Your Timeframe And Start The Process Early

When it comes to leasing office space, time is your best friend. Many companies don’t realize that they need extra space or that their lease is expiring soon until it is too late. The typical office leasing transaction can take 6-12 months, so planning ahead and allowing ample time is extremely important.

2)   Have Realistic Size And Budget Requirements

All too often, companies will find their ideal office space only to later realize that they can’t afford it. Along with paying base rent, you must account for your proportionate share of taxes, operating expenses, utilities, and insurance. As your company grows, you will likely need more square feet to accommodate a larger team. If you have rapid growth plans, it is in your best interest to not get locked into a long-term lease as being stuck with too small of a space can eventually become a liability.

3)   Create Leverage Between Landlords

Whether renewing an existing office lease or seeking out a new office space for rent, it is important to have multiple office options to consider. Even if you are 99.9% sure that you are going to renew your lease, it is best to make the appearance to your landlord that you are ready, willing, and able to walk away in order to get the best deal.

4)   Make Even Comparisons

Leases can be structured in many different ways and it is important to know you are making an equal comparison when looking at the pricing of multiple office options. Many buildings are quoted in gross lease rates, others are in net, and some have utilities included. Be sure you know all of the expenses associated with leasing an office space before making your final decision.

5)   Use A Tenant Representative To Save Time And Money

A quality Tenant Representative will only represent tenants, never landlords, to avoid conflict of interest. Their entire firm will also reflect this and being a Tenant Representative will be their full time job. Unless you are a commercial real estate professional, it would not be in your best interest to try to negotiate directly with the landlord as you will likely be leaving money on the table. Using a Tenant Representative will free up your time as they will conduct all the necessary legwork associated with an office lease transaction. This will allow you to continue to successfully run your business and avoid costly mistakes during the lease negotiations.

For more information on the Tenant Representation Services that can streamline the leasing process for you, please contact us with questions.

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