Do’s and Don’ts of Renting an Office Space
Getting office space for the first time is a monumental achievement in the history of any business. It shows that the business is successful and large enough to merit having its own dedicated space. If you’re beginning to look around for a suitable commercial space for the first time, congratulations!
As hard as it is to get to this point, finding your space won’t be a walk in the park either. You’ll have to carefully sift through properties, negotiate your lease terms, and of course, hope at the end of the day that you aren’t stuck with a bad landlord or problems with space for a whole year or more, depending on lease terms.
To help you make the right choices, here are a few do’s and don’ts to keep at the forefront of your mind:
Do: Keep your success quiet.
You shouldn’t come in scraggly and like your business is on its last legs, but that doesn’t mean you should be openly flaunting your success either. The more successful the seller thinks you are, the higher they’ll think their price can be. Even well-established businesses looking to rent in prime spaces (similar to the type found if you click here) make sure to play their hand carefully. Show an air of success without carefully defining just how far-reaching that success is. This applies even once you’ve secured the lease, as the landlord might raise your rent in a later agreement if they see you doing absurdly well.
Don’t: Take the first offer.
Negotiations don’t really begin until the first offer has been made. Negotiations are a part of this business, so most initial offers are higher than they should be with the understanding that you’ll haggle your way down to their real desired price. In fact, the first offer is often used to gauge your negotiation skills and tactics. It isn’t rude to negotiate for more favorable terms.
Do: Talk to other tenants.
Ask people who have been in the space, as well as those currently using the space about their experiences in the building. Take careful notes of comments about the landlord, how the property is managed, and whether or not there have been any major issues with being headquartered there. Their third party opinions should be much less biased than what the owner or a broker says about the property, as they have nothing to gain from telling the truth.
Don’t: Forget to ask for renewal incentives.
The last thing any landlord wants is for a good tenant to leave. The time it takes for the tenant to move out, as well as securing a new one, is all lost revenue in the mind of any landlord. When first negotiating your lease, make sure to get some renewal incentives in writing. These incentives can be anything from a discount in rent during certain months to tenant allowances, to even guarantees the rent won’t rise by a set percentage by the time the next round of negotiations is upon you.
This list is hardly comprehensive as there’s much more to concern yourself with during the purchasing process. At the same time, we find that these four tips are some of the most critical steps when it comes to making sure you don’t end up with a lemon of a property. Once you’ve signed a lease, you’re there for good, so due diligence is essential.