Rent Office Space In Your City
Office Space and Co-working spaces For Rent Today - Browse Options In Your City
Renting office space in your city requires the ability to see the long-term big picture for your business, while simultaneously focusing on multiple logistical details. Such details include financial aspects and figures applicable to your company’s bottom line. Commercial leases also differ in specific ways from residential leases. In addition to contractual considerations, it is also important to research locations, nearby attractions, and amenities pursuant to each building. Continue reading to learn valuable effective strategies for renting office space in your city now.
Office Space Rentals 101
On the list of most important decisions to make for your business, renting office space is near the top. Selecting a location for your business is an exciting experience full of anticipation. Choosing the perfect office space to rent also presents its share of challenges, which vary in severity based on circumstances. For some business owners, renting office space poses minimal challenges and is executed without complications. For others, however, renting an office space contributes the lion’s share of logistical obstacles to overcome.
A multitude of property types and rental spaces are on the market. Understanding the differences between these types is an essential aspect of choosing the office space best suited for your business. Commercial leases are complex and occasionally confusing. Hiring an attorney to review your lease and protect your interests is perhaps an unexpected expense you might initially resist. The benefits highly outweigh the costs, however. This is especially true when your lawyer changes unfavorable terms into favorable ones and saves your business money long-term.
Comparing Commercial and Residential Leases
Each lease, whether residential or commercial, contains terms relevant to each situation. Leases create legally binding agreements between property owners/landlords and tenants. Commercial leases allow profitable businesses to operate on and within a leased space. This permission is generally not granted in residential leases. Residential leases commonly protect tenants from unethical activities committed and/or performed by landlords. Commercial leases do not typically offer such protections, however.
Why do commercial office leases lack such tenant-based protections? Business owners renting office spaces are expected to already have a comprehensive knowledge of contract legalese and business ethics. Therefore, commercial leases are not padded with superfluous protective clauses.
Location and Nearby Attractions
The location of your office space is highly important to the ongoing success of your business. Its location must be conveniently accessible for customers, clients and employees alike. Consumers are much more likely to patronize a lesser-quality business with hassle-free access than they are one located too far away. Your business should also be located near a wide base of talent suitable for your business type and needs. Access to better talent means increased hiring opportunities capable of improving the overall quality of your business. This type of access also reduces the money you must spend on talent searches and third-party hiring services.
The location of your business needs to accommodate future growth plans and possibilities as well. Flexibility and community networking opportunities are also important aspects to consider when choosing a location. Is it possible to add and subtract desks as needed? What are the expansion possibilities? Networking with other business in the area is valuable strategy for increasing your clientele/customer bases, while simultaneously supporting your community at-large.
Nearby attractions are another top consideration when choosing a location for your office space rental. An ample availability of popular amenities attracts talent, customers, and clients. Proximity to popular nearby attractions also increases brand name recognition for your business and serves as free advertising.
Building Amenities and Security Features
Building amenities where you rent your office space are also important considerations. Buildings with fast plentiful elevators, cafeterias and even retail shopping are more attractive places to work and visit. Visual amenities such as fountains, plants and artwork make your office space feel more relatable and relaxing. Security is also important. Does your building have state-of-the-art surveillance and 24/7 security guards? If not, what security protocols are in place? Building amenities and security are strong selling points to prospective talent and attractive features to current and new customers and clients.
Types of Office Spaces Available
Office space types vary nationwide. Class A, B and C office spaces vary in quality from highest to lowest respectively. Class A spaces are the finest available. They often consist of new properties or buildings or are in brand-new commercial developments. Amenities in Class A office buildings are also high-quality and include offerings such as enclosed/covered parking, fitness centers, spas, on-site mailing and more.
Class B office spaces are in quality buildings albeit ones with fewer amenities (and therefore lower rental prices). These spaces are still built in major commercial regions, even though they are located more commonly in the suburbs. This means proximity to popular amenities and attractions is not as convenient as what is offered by Class A spaces, but again, rental prices are reduced accordingly. Class C office spaces are functional, have minimal amenities and are located further away from major attractions. Some Class C spaces require renovation, while others are specifically purposed for redevelopment projects. Rental prices on Class C spaces are therefore the lowest available. Additional types of office spaces available to rent in your city include:
Reviewing and Negotiating Your Commercial Lease Agreement
Reviewing your lease is essential to protecting your rights and guaranteeing your best interests. Commercial leases are also negotiable. Five main types of office space leases exist, including:
Each type of lease has its advantages and disadvantages. A full-service/gross lease requires the tenant to pay base rent and utilities, while the landlord pays for building, maintenance, insurance expenses plus real estate taxes. Net leases include triple-net (NNN), double-net (NN) and single-net (N) leases. Net leases require tenants to pay rent/utilities plus a share of building operating expenses (including maintenance costs, insurance free and property taxes). Triple, double and single-net leases all have variations of these terms and requirements.
A modified gross lease is common and popular because it finds amicable middle-ground between required landlord and tenant expenses. An absolute NNN lease is not the same as a triple-net lease. Absolute NNN leases require tenants to pay all applicable building expenses, which includes maintenance and repair costs to both building structure and roofing. Landlords have no expense obligations under the terms of an absolute NNN lease, which is why only tenants with regional-to-national brand recognition and excellent credit typically sign them. Finally, a percentage lease requires tenants to pay a base rental fee plus a percentage of gross business profits and sales. Landlords pay some if not all property taxes and related building expenses.
Lease Negotiation Tips
Research each lease type prior to signing any papers. Ask for better terms and figures to reduce your annual expenses. Know the value of your business and have a business plan and expected growth chart prepared. Use the anticipated longevity of your business to ask for lower rent prices. Remove terms with which you are uncomfortable whenever possible. Hire a lawyer to negotiate for you to increase chances of negotiating success. Finally, compare prices of leases for nearby office spaces and push the landlord to price-match lower nearby rental rates to earn your business.