Leasing office space is one the major decisions that a company has to ever make. However, armed with little or no knowledge at all, office tenants commit mistakes. Here are five common leasing mistakes often made in search for the right commercial property to lease.
1. Inadequate Preparation
Some tenants go searching for a space to lease without preparation which could cause costly mistakes. Not being able to plan ahead could lead to leasing the wrong property.
If you’re an office tenant, it’s important that you are aware of how you intend to use your office space now and in the future, how employees will get to the location, the equipment that will be installed, telecommunications and technology setup, among others.
With key information in mind, you can start looking for the commercial real estate that will fit your business needs.
2. No Team to Handle the Project
Looking for an office space to lease is a major business decision. It’s complex and time-consuming that no single person can handle effectively. As such it’s important to assemble a team to handle the leasing project. The group should comprise of a broker, architect, engineer and lawyer, led by a project manager. The project manager also acts as the single point of contact within the organization and should also be getting inputs from the company’s finance, human resources and IT departments.
3. Not Being Thorough
Not checking all the details of lease terms can be costly for your company. Read all documentations carefully, and that means reading a lot of paperwork. That’s because leasing an office space requires a lot of documentation. Verify if the real estate you’re looking into is zoned for your purpose. Make sure it is in compliance with safety and security regulations.
If exploring old buildings, have it checked independently. Simply relying on documentations can be costly in the long term. It’s important to examine all documentations presented by landlords.
4. Not Negotiating
Even if you found the property that you like, don’t sign the dotted line too quickly. Find time to negotiate. Negotiate on the leasing terms, rent and security deposits, et al. Bear in mind that landlords would like to keep their buildings occupied to stay in business. With the appropriate negotiating tactics, you’re likely to seal a favorable deal.
5. Lack of Time
Leasing a commercial property takes time. The different stages involved in leasing a property from planning, team assembly, property search, verification, negotiation, construction up to moving in to a new space is time consuming. Taking a short cut to leasing an office space can be frustrating, and worst, could lead to disaster. You could either enter into a leasing contract with your company at a disadvantage, or renting an expensive office. Much worst is ending up looking for another commercial real estate after moving in.
By allotting time for leasing an office space, you can shop around to find the best property. It will also allow you to verify documentations and more time to negotiate for the commercial space you have chosen.