the office relocation planning website

What makes a good Office Lease deal?

Office Leases - How to spot a good Office Lease Deal when you see one.

Office Rent

The rent you will be committing to for the term of the lease is an overriding factor when negotiating your office lease. Be clear about what you can afford and avoid overstretching yourself just to clinch a deal. There will be other properties out there that may also satisfy your requirements without breaking the bank!

Incentives

Landlords may offer tenants incentives such as rent free periods, build out contribution, or options to break in order to secure the deal. Free rent periods are attractive to tenants, allowing them to use the cash they would normally spend on rent to pay for office design improvements or for office movers.

Office Lease Term

Longer leases tend to give your Tenant Rep Broker more room for negotiation, and landlord's are willing to invest more $$$ in tenant improvements if they know a longer term cash stream is guaranteed. Be aware though of overstretching yourself to a lease term that is longer than you can realistically commit to.

Break Clause

It is worth seeking to negotiate a break clause with the landlord, which give you the option of terminating the lease prior to its expiry. There are still traps for tenants as far as break clauses are concerned and tenants should always seek legal advice in this particular area.

Date of Occupation

The landlords objective is to have the office occupied as soon as possible as vacant space is a costly burden for landlords. Make sure you a clear at the very outset of the date you are taking over the office lease and your subsequent date of occupation, and if you are swayed into agreeing an earlier date, ensure you have the financial backing to do so.

It's understandable that many businesses don't have a huge budget for getting legal representation. But it's worth bearing in mind that your business will have to live with an office lease for 5-10 years - so it's worth spending the money on hiring a Real Estate Lawyer to make sure you get it right from the outset.

Looking for Ofice Space? Refer to the free Office Space Checklist for expert insight into what you need to be looking for.

 

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

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