Most companies perform annual reviews on every other aspect of their business however never even consider doing that for their Austin office space needs or office lease contracts. Are they leaving money on the table? Do they have too much space? Too little? Are there less expensive options out there? They will never know!
Your office lease is one of the most expensive items on your budget. It’s important that you re-evaluate your needs and lease contracts each year to determine whether or not a change is needed or possible. You never know what kind of savings can be had if you are proactive. To help make this yearly review easier below are a few guidelines:
Lease Documents: Keep all lease documents organized and filed away (hard copy, soft copy, or both) in a place where at least two people can easily retrieve the info. This includes all lease agreements, addenda, amendments, exhibits and side agreements (e.g. NDA’s and estoppels). Review these yearly to ensure your familiarity with the contracts and to avoid responding last minute to your office lease renewal dates.
Office Space Needs: Get an employee head count. Are you leasing too much space? If so there are creative ways to negotiate rent reductions or sublease excess space, or have the landlord take back excess space. Work with your Austin Commercial Real Estate broker to evaluate your options. When leasing office space and ensuring you get the best deal time is your alley…………..Start the process early and be proactive!
Bills: Most leases contain operating expense, tax and other pass-through clauses as well as requirements that the tenant pay for sundry items not covered by the rent. Keep copies of all annual reconciliations and do a yearly evaluation of these as well.
Slow Time: Take advantage of the holiday slow time! December holidays are a great time to give your business a yearly checkup, especially the last two weeks. As you reflect on your accomplishments over the last year think about your current and future office space needs/contracts, and how you might save more money.
Leasing Austin Office Space is one of your most expensive overhead business items. As you prepare and plan for the New Year don’t overlook your office space and lease contracts. Prepare yourself to meet deadlines and find creative ways to save money.
HAPPY NEW YEAR!!