The second highest expenditure for most businesses is definitely facility related expenditures. While customers are the most important asset for your business, wise real estate decisions follow behind closely. This is why all tenants must take their time in doing their research, making decisions and negotiations in regards to leasing office space. Here is what to avoid when embarking on the process of leasing for your business space:
Lack of adequate planning
This is a massive consideration, which in most circumstances is overlooked in the moving process or the negotiation process. Regardless of whether you are in search of new office space or not, just renewing an already existing lease it is of utmost importance that you plan adequately to strike the best offices deals. Under no given circumstances should you sign a commercial lease agreement without planning as it gives you adequate time to examine the decisions you are planning to make and if they will benefit your business in the end. This gives you more leverage in the negotiation process.
Not seeking the services of a realtor
Having information about the real estate market is not enough; the market is outstandingly more complex than you may possibly imagine. You require an expert commercial real estate broker to help widen your chances of maximizing your savings and increasing the chance of your company achieving its defined goals and objectives. A qualified broker offers a more detailed insight into the complex nature of the commercial real estate market, thus strengthening your understanding of the market trend, demographics, and property owners and is skilled in negotiating commercial real estate deals on your behalf.
Leasing out an inappropriate amount of space
The art of figuring out the exact amount of space is not as easy as it appears to be. You will risk the health of your business if you do not think and decide on the size of space you need and instead offer haphazard assumptions. Unprecedented events notwithstanding, a space planner or a professional architect with clearly defined space estimation programs can offer you the best space appraisal services.
Not understanding the range of rental prices
It is very important to know the range of office rent in the locality that you are considering to get an office space. Since the property owners are mostly shrewd businessmen, they can be cunning and give you a higher price than the actual amount. You can avoid such incidences by always involving a real estate professional to act as your tenant executive. The fee that you will pay the professional representative will save you humongous costs that may result from being conned. This also applies to the cost that the property owner presents as rent and security deposit. Beware of being over charged, and utilize your negotiation skills or that of a professional.
Paying minimal attention to future concerns
Truth be told, trying to focus your real estate plan in a similar direction with your business objectives and goals can be rather daunting, since there are business events that are bound to interfere with the plan. Commercial real estate experts however advise that you negotiate with the property owner having the business goals in mind, such as future expansion or contraction rights. This may help you to be ready for other unprecedented events.
Not carrying out the necessary building system inspections
Building s systems is the backbone of a rejuvenated working environment. The heating water, cooling and electricity systems are extremely crucial to the health of your business. With this in mind, there is paramount need to ensure the building systems are fully functional.
Not fully knowing the terms and conditions of the commercial agreement
It is crucial to understand all the details pertinent to signing any legally binding document. Signing without fully understanding what the commercial lease agreement entails can cause the later demise of your business. Remember that the property owner is also doing business as well and may be as crafty as to structure the terms and conditions of the commercial agreement to manipulate you in their favor. To be on the safe side, hire a professional commercial real estate lawyer with a reputable history to guide you in the process.
Signing extremely long and short term leases
Sure, signing short-term lease guarantees flexibility on your side but there is a price you have to pay, which you need to find out from your commercial real estate broker. On the other side, long-term leases offer maximum stability but you may end up being overwhelmed by rent payment, rendering your business bankrupt. In light of these dimensions, every business should consider long-term approaches whilst keeping short-term business operations in mind.
The more you continue postponing dates for starting the leasing process, the less the number of spaces you will have for your selection. This means that you will have to pay more rent as real estate spaces keep appreciating by the day or stand a chance of striking unfavorable deals that harm the business.