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Office Lease Negotiation Pitfalls

There are so many things to think about when moving office, and negotiating the right office lease may not be something we make a priority. But, signing a bad lease and not understanding the details of a lease can cause a business person long term problems.

These common office lease negotiation pitfalls will help you to think before signing an office lease in haste:

Forgetting the Fine Print
When it comes to reviewing the terms of an office lease - it's ALL fine print, and you should always get a more experienced pair of eyes to go over the details. Contact a Real Estate Lawyer to review the lease for you and explain the legal jargon.

Not Knowing Who Pays for What
It's important that you understand exactly what you are paying for and what expenses the landlord will cover. Are you responsible for any costs other than the rent? Are you responsible for paying for your own utilities and garbage pickup, for example? Make sure all these cost items are factored into your Moving Office Budget AND you have the cashflow to afford them.

Miscalculating Rental Increases
One very important factor to know is if and when, and by how much your rent might go up over the term of the lease. It is expected that rents will increase as property values increase, so most leases include a rent increase on the anniversary date of the lease.

Rushing into It
Don't be rushed into signing an office lease until you are fully satisfied that you understand every obligation and clause and that you have had it checked over by a Real Estate Lawyer. Be prepared for several drafts to be exchanged before you are in a position to sign it over.

Negotiating Yourself
No matter how good a negotiator you consider yourself to be, you should NEVER attempt to negotiate your own office lease. Hire a tenant rep broker who negotiates office leases for a living, knows the property market and can secure the best lease terms for your business.

Find a good Tenant Rep Broker in your market by searching here.

 

Planning an office move? Go the office relocation planning resource center

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