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Tagged ‘Office Space’

Denis Mehigan

Three Resolutions for Better Office Space


No matter the time of year, your business should always resolve to get the best deal when looking for office space.  Here are three ways to ensure just that:

1.  Don’t Fall For the Scarcity Trick:  This is when real estate brokers claim that there are people in line wanting to lease the space your company is looking for.  Or the market is so tight that you won’t find reasonably-priced space.  Don’t let fear force you into overpaying for a space that isn’t right for your company.

2.  Investigate Shadow Space:  In addition to “public market” space, there are often additional offices that can be rented from businesses that have extra space.  A knowledgeable broker can often find space in places that don’t have anything listed officially on the market.

3.  Know Your Load Factor:  The load factor is the fee that landlords charge for the use of common spaces such as lobbies, elevators, restrooms, hallways, etc.  This fee can be anywhere from 15%-30% of your rent, and can drastically affect your bottom line.  Make sure you know what the load factor is and whether it is worth paying for your business.

When searching for office space, it is wise to look into these details to make sure the landlord isn’t overcharging you.  An experienced professional can help guide you in asking the right questions and negotiating a lease that is best for your business.

If you need consulting on Commercial Real Estate, contact TrustedPeer Expert Denis Mehigan.

Denis Mehigan

The Best Office for Your Business:  Five Rules for Leasing Commercial Real Estate Space

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Companies in San Francisco recently received a boon in their hunt for office space:  a six-year payroll tax exemption in return for helping develop the formerly neglected mid-Market Street area.  However, businesses everywhere can use these five simple rules when looking for commercial real estate space.

Five Rules for Getting a Better Lease: 

  1. It Pays to Shop For Office Space:  Office space is the second largest operating expense of a company’s budget, so it pays to have someone who knows how to find the right space and negotiate the lease.  For smaller companies, finding office space usually falls to the most recently hired employee, who may not know what incentives to ask for.  
  2. Think Outside the Real Estate Listings:  Don’t let yourself be limited by what’s officially on the market.  Large companies often lease a bigger space than they can use and are willing to rent part of it to others.  If there’s an area or even a building you’d really like to be in, you might be able to find space in it even if there isn’t anything officially for rent.  
  3. Make a List of Non-Monetary Lease Benefits:  Incentives aren’t always dollar bills.  One San Jose business asked the city to change a one-way alley behind their building into a two-way street.  After studying the issue, the city made the change, making it easier for their employees to get to the office.  Would your business benefit from building signage or some other non-monetary incentive?  Make a list and see what the landlord or local government is open to doing.  
  4. Timing Counts When Negotiating:   The internet gaming company, Zynga, signed a lease on a building a few months before the mid-Market tax benefits were proposed--and had to go to the mat with city officials over it.  They didn't get the payroll tax, but they did receive a tax cap on stock-based compensation--and a lot of bad press in the process.
  5. Mutuality Makes Good Leases:  There are incentives you can ask for from the city and and others that the landlord can address.  With respectful negotiation and a sense of mutuality, companies can ask for--and obtain--a variety of incentives that make it a win-win for all involved.   

There are many things to consider when renting commercial space.  Knowing the right questions and how to ask them can save you time and money while helping you find the best place for your business to thrive.

If you need consulting on Commercial Real Estate, contact TrustedPeer Expert Denis Mehigan.