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.
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