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Nov 7th, 2012 | | How to | Comments Off on Five Major Mistakes Tenants Make when Leasing Office Space

Five Major Mistakes Tenants Make when Leasing Office Space

Costliest mistakes tenants make when leasing office space

Looking for an office space can be very challenging in terms of time and money. Especially for small business and entrepreneurs looking for office space for the first time. Making mistakes is normal, and it happens to all of us, but when it comes to making mistakes which affect their business, tenants should be very careful. Most mistakes when leasing office space, refer to tenants doing enough research and planning, not giving themselves enough time to adequately search for space and negotiate a lease; and tenants failing to understand their space needs, leasing terms, their negotiating power, or estimate additional costs.
Here is a list with the 5 major mistakes most tenants make when leasing office space for the first
time.

Mistake #1 Lack of Proper Planning and Research

Believe it or not, many tenants are not very clear about what exactly they need and do not allocate enough time to make a detailed research online and offline. Office space leasing experts say that tenants should start their office space search no later than six months prior to leasing term. Not knowing how much square feet of office space are needed, or other special office space requirements (for example if extra electricity or special telecommunication are needed) can result into leasing an office space much larger than actual office space needs or simply having to add additional costs.

Mistake #2 Making a decision based on price, not value

The second mistake is in part a result of the first one, making a decision based on price alone. When the tenants do not allocate enough time to research and tour more properties and go with the best listing they found. When looking at the office space rate one should not only see the price, but consider the VALUE. It is not the price that is most important but the value you are receiving for that price. Tenants should compare all offers, based on the value they get for their money. Look at location, convenience, amenities and services. Also, make sure you are not paying more on security deposit or extra-services then what it is commonly practiced by other properties in the market.

Mistake #3 Not Understanding Leasing Terms

Leasing office space means ton of paperwork, and like in any transaction you should read and understand your rights and obligations prior to signing a contract. Most office space leasing experts agree that tenants looking to lease on office space over 2,000 sq ft should hire an office space borker. A good tenant broker is a market expert who is trained in negotiating the most favorable lease terms for his client.

Mistake #4 Signing the Lease on the Wrong Length of Time, Too Short or Too Long

Tenants not taking their long term goals into account may end up leasing the office space on the wrong length of time and not taking in considerations the expansion rights, which obligate the landlord to provide you with more space when needed; the right to cancel the lease under certain circumstances, such as when a tenant needs to expand and the landlord cannot provide the additional space; the right to extend the lease, allowing the tenant to remain in the space for a longer term or the right to sublease the space.

Mistake #5 Underestimating Additional Costs

In addition to the price per square foot, the leasing terms may be incur additional charges to which all tenants are subject. Examine the lease carefully and feel free to ask the landlord about the potential extra charges such as operating expenses which varies from year to year, the overtime air conditioning charge or parking.

Leasing an office can be a complicated process, but understanding all the office space leasing options and how the leasing process works will make the tenant an informed consumer which will be able to a make a successful office leasing decision.

To review the best Las Colinas office space solutions call us today at 972 331 2629.


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