When it comes to finding an office space, it is essential that both businesses and companies are able to reduce as much cost as possible. After all, the costs of commercial real estate can rank as high as third or even second on the list of a company’s expenditures. If you are looking for some tips to reduce such costs when searching for an ideal office space, the tips below are right for you. You can regard the following tips as proactive techniques you can use in the earlier stages of finding your office space.
Build room for adjustment
You should always try to build some room for adjustment into a potential lease. While majority of the leases out there are for the long term, the way a business performs may vary significantly from one working quarter to another. Hence, it is pertinent to have some flexibility to be built into the lease and this may in turn become a saving grace when your business hits rough waters. You would also need this flexibility to mitigate your losses in worst case scenarios such as natural disasters, building condemnation or interruption of services.
Pay attention to details
The details and specifics pertain to the sublease provision and renewal option. Even if the renewal option will not be a major concern in the short term, it will be financially beneficial and pertinent to consider it during the evaluation process. Factors such as rent penalties and notification periods can affect a bottom line in a big way in due course. When you pay special attention to the sublease provision, you can enhance the marketability of a space if your business conditions need to sublet a section of your square footage.
Have proper representation
It is not recommendable that you depend on any in-house services that your potential landlord provides. You should instead assemble your own crew of consultants and professionals to advise you through the evaluation process. Whether it is contractors, architects and brokers, they should working with your best interests at heart and be on your side.
Take the entire concession package into consideration
While the monthly rental rate is of utmost importance, it is also pertinent that you consider the above when deciding on a location you favour. Issues such as relocation allowances, rent abatements or build-out allowances can make a big difference in the long run.
Factor in build-outs and construction
It is essential that you pay extra mind to any potential build-out cost or construction overheads that will go into the bottom line of a move. Many tenants tend to run into financial surprises and setbacks when they forgot to consider design issues like build-out costs as well as not making enough effort to gather competitive bids for any construction needs pertaining to relocation.
Raise the stakes
It is important that you do not hesitate to raise the stakes during a negotiation. You should create a sense of friendly competition between potential landlords as it is an essential part of negotiating a new lease or old one. If you want your business to have an advantage in such negotiations, you should make it clear that you are already looking at multiple spaces. You do not need to reveal too much information, otherwise results will become detrimental. Oftentimes, you will only need to reveal that there are other options laid on the table and that will be enough.
Give yourself enough time for preparations
If you are considered a small-scale tenant, you should give yourself a six month buffer between moving and beginning a search. If you are a medium-sized tenant, then you should begin all necessary preparations before a move as many as 18 months ahead of time. For corporate entities that have more than hundreds of employees, this would be considered as large scale. They will need to prep as early as two to three years before a move.
Customize a space to your specific needs
When you look for a new office space, it is essential that you get the right amount of square footage as well as the layout within it. The layout within one two thousand square foot space and another with the same square foot is not necessarily the same. The difference between layouts and common areas will greatly affect the overall usability of a space. Hence, you are recommended to work with a space planner before beginning your search to determine the ideal layout and size that suits your business needs.
If your company needs help to get an office space for lease in Toronto, don’t hesitate to contact Commercial Space Toronto for assistance. Our highly experienced and licensed real estate professionals are always ready to answer your enquiries. We will strive to help you negotiate the best possible deals that come with the most favourable terms.