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Office Space Rental: The Best Choice
The starting point for determining your operating costs under an office lease is identifying what services the landlord provides, what services the tenant must get directly, and who bears the cost. The following are common costs for office space:
Heating, ventilating, and air conditioning (commonly referred to as “HVAC”); cleaning and janitorial services, electricity, repairs, security.
Term of the lease. Landlords are typically willing to make concessions for longer-term leases. A company’s needs may change, however, so try to negotiate a shorter-term lease with renewal options.
Usable square footage is less than rentable square footage because it deducts common areas such as public corridors, elevators, lobbies, and bathrooms from the overall calculation. So, to compare apples to apples, you have to know the exact usable square footage of each space you are considering.
In this case, your company’s moving in will naturally cause cost increases. Get the landlord to count the base-year costs as if the building were fully occupied and operational.
Repairs, improvements and replacements. Be aware of a clause that says that at the end of the lease premises must be returned in their original condition. Assignment and subletting. Companies should negotiate enough flexibility in the assignment and subletting clause to allow for mergers, reorganizations, and share ownership changes. Option to renew. Try to get the option to renew your rent at a fixed predetermined price, not based on a “fair market” price.
Right of first offer or first refusal for additional space. A right of first offer obligates your landlord to present any space that becomes available in the building to you first before marketing it to third parties. A right of first refusal on space obligates the landlord to bring you any deals he is willing to sign with third parties for space in the building and allow you to match the deal and preempt the third party. See Option to Expand Under Office Leases for more information.
Keep in mind that different buildings have different costs and landlords may charge for services in a different manner. So the types and amounts of the costs that the landlord passes on to the tenant can have a big impact on the economics of a lease
Finding the best information about office space for lease can be overwhelming at times. One of the best places we found online to get the straight facts is office space rental in miami fl
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