4 Stages of Commercial Austin Office Leasing in Austin, Tx

You are about to embark on one of the most important aspects of your business’ existence, locating Austin office space. Whether it means finding a new lease or renewing an existing lease, your office space will have a major impact on the success or failure of your business. Leasing office space is typically a company’s second highest expense right behind salaries and employee benefits. In fact, for many small to midsize companies, this will be the highest fixed monthly expenditure. This is why it’s important that prospective tenants begin the space review process early, ensuring that the process of planning, hiring, finding, negotiating, implementing, and relocation gives the tenant the best opportuntiy for success. Whether you plan on finding a new office space lease or renewing an existing one by planning at least 8-12 months in advance, time will be your ally, not your enemy. Additionally if you plan on renewing your office lease it’s important that you follow the same process as if you were leasing space for the first time.

Essentially there are 4 basic stages of the commercial office leasing process:

1. Planning Stage – Here you must determine whether you want to renew your existing lease, relocate your office, or are open to both, whichever makes the best economic sense for your company. You also need to determine your current and future square footage needs, establish your budget and time line, define your ideal location, and identify any technical and amenity requirements.
2. Market Research – Working with your broker begin to survey the market to evaluate office space alternatives, including your existing space and and tour the most desirable office options. Once you have seen other options and compared them to your existing space you will be able to do a side by side comparison on all properties and select the top 2-3 that most address your needs.
3. Negotiating Stage – Request lease proposals, including an office lease renewal from your existing landlord and perform a lease analysis to compare each properties financial points and other physical and operational attributes against your ideal criteria. After a few rounds of counter negotiations you can then select the option that best meets all of your Austin office space needs. The lease contract can then be drafted, reviewed by your legal team, and executed.
4. Construction Stage – If your space requires any modifications (which in most cases it will) you will then work with the landlord, contractor, and architects to develop a space plan according to the specifications agreed to in the lease. You will also begin the process of engaging vendors such as internet service and data cabling, furniture, movers, etc..

As you can see, the Austin office lease process has numerous components that, when implemented effectively, can require 8-12 months for a smooth adn cost effective relocation. If in the event you are short on time, there are some short cuts, however they can cost your business money and negotiating power. A solution to this scenerio may be to limit your choices to only those buildings with available spaces that require limited or minor modifications, or looking for office subleases that meet your needs exactly.

Regardless of the path you take, whenever possible, it’s important to start the 4 stages early enough to allow yourself the maximum amount of time for gathering information and making the best decision.

Essentially there are 4 basic stages of the commercial office leasing process:

1. Planning Stage – Here you must determine whether you want to renew your existing lease, relocate your office, or are open to both, whichever makes the best economic sense for your company. You also need to determine your current and future square footage needs, establish your budget and time line, define your ideal location, and identify any technical and amenity requirements.
2. Market Research – Working with your broker begin to survey the market to evaluate office space alternatives, including your existing space and and tour the most desirable office options. Once you have seen other options and compared them to your existing space you will be able to do a side by side comparison on all properties and select the top 2-3 that most address your needs.
3. Negotiating Stage – Request lease proposals, including an office lease renewal from your existing landlord and perform a lease analysis to compare each properties financial points and other physical and operational attributes against your ideal criteria. After a few rounds of counter negotiations you can then select the option that best meets all of your Austin office space needs. The lease contract can then be drafted, reviewed by your legal team, and executed.
4. Construction Stage – If your space requires any modifications (which in most cases it will) you will then work with the landlord, contractor, and architects to develop a space plan according to the specifications agreed to in the lease. You will also begin the process of engaging vendors such as internet service and data cabling, furniture, movers, etc..

As you can see, the Austin office lease process has numerous components that, when implemented effectively, can require 8-12 months for a smooth adn cost effective relocation. If in the event you are short on time, there are some short cuts, however they can cost your business money and negotiating power. A solution to this scenerio may be to limit your choices to only those buildings with available spaces that require limited or minor modifications, or looking for office subleases that meet your needs exactly.

Regardless of the path you take, whenever possible, it’s important to start the 4 stages early enough to allow yourself the maximum amount of time for gathering information and making the best decision.