Leases ensure that you preserve valuable cash and credit lines to meet other operational requirements of your business. After all, there is no use tying up valuable operational resources to the property when you might be moving in a few months. Leases are easy to negotiate and close, making them popular in many business zones. However, with multiple offers in the market, you may find it hard to decide on a space that fits your business needs. Here are several criteria that will assist you in selecting an office space for lease.
Office space, like most properties in the real estate business, varies depending on the amenities. Ask yourself the following questions before settling on any lease: Will your team appreciate being near a form of public transport? Can your team access coffee shops and restaurants? Are there adequate parking areas near the office? Your office space requires such amenities to make it convenient for workers and partners.
Most leased properties have high-end features, which make them competitive in the market. As a result, it is tempting to overspend and enjoy working in a luxurious building. However, every business should operate within its budget. Therefore, you should have a target amount in mind when searching for a place to lease. Always ask if the landlord offers a gross lease, full-service lease, modified gross lease, absolute net lease, or a triple net lease. All these provisions have unique costs dictating the parties required to pay for amenities and other items. For example, a gross lease means incorporating the utilities, insurance, and property taxes in your budget. Therefore, be sure to thoroughly evaluate the lease and know its stipulations before signing.
What would happen if you leased office space in the same building as your competitors? Well, there are different perspectives to evaluating the outcome here. First, some firms include restrictions in their lease agreements that prevent the landlord from leasing out to competing businesses. Therefore, you should ask the landlord about such an issue when negotiating the lease. Secondly, your business might benefit from having other firms in the same industry around. Customers learn to associate the area with your specific practice. For instance, your law firm or insurance business is bound to get more walk-in clients when it is near similar companies. Therefore, you should thoroughly investigate which other companies are around the office space you plan on leasing.
The last and most important factor is the square footage of the office space. Your business might grow significantly within the length of your lease. Therefore, the room should handle your current size and the predicted expansion. Ensure you avoid incurring shifting costs or fines when you terminate the lease due to congestion after your firm expands.
Your leased space should have the necessary amenities. Ensure that you have a budget before looking for the space to lease and stick to the budget. You should also investigate the surroundings and examine which firms are next to your office. Finally, ensure that the office space can handle your current and future needs.