Leasing office space will be one of the largest expenses your company makes. Below are a few ways to reduce your costs.
- Start your office space search and negotiation early. The more time you have to weigh your options the better. 4-6 months for smaller spaces 8-12 months for larger spaces.
- Create a competitive environment during negotiations between landlords whether you are negotiating a new lease or renegotiating an old one. Actually be negotiating on more than one option and Let the landlord know that you are considering multiple options.
- Don't lease too much space. Too many companies lease more space than they need. Consider hiring a space planner/architect to dial in the space you need. All buildings are different. Some are more efficient than others.
- Factor in construction costs. The landlord maybe giving an allowance however make sure you don't go overboard and underestimate costs. Make sure you pay attention to all costs.
- The entire concession package should be considered. Rental rate is only part of it. Also consider the tenant improvement allowance, rent abatements, allowances for relocation, etc.
- Compare each option apples to apples. Some buildings included electric in the rate. Others don't. Make sure you compare each buildings total monthly and yearly costs apples to apples.
- Create flexibility. You have the best intentions however you never know what may happen. You might need to expand, relocation, downsize, etc.
- Hire a tenant rep. They negotiate leases day in and day out so they know what to ask for. They can ensure you get the best deal possible.
Have any questions about leasing office space? Give us a call or visit our website.