Embarking on the next phase of your business adventure by taking commercial office space for rent is sure to be an exciting prospect. However, leasing commercial property is a complex, lengthy procedure that needs some careful consideration to avoid binding yourself to the wrong type of contract or unsuitable location.
Leases
Traditionally, commercial real estate for lease becomes more affordable whenever the home-buying sector is in decline. Whether you’ve found the perfect bargain depends on a number of factors including floor space, location, your budget, service charges and most importantly, the lease itself.
Full-Service Lease: The most straightforward lease you can get as there is only the rent to account for. The rent can be high but additional service charges including the building’s utilities, taxes, insurance, and maintenance are taken care of by your landlord.
Net Lease: A low rent is offset by a tiered system of monthly charges for additional services. With a Single Net Lease, you contribute towards the building’s tax bills. A Double Net Lease includes a portion of the property’s taxes and insurance. Triple Net Leases are usually reserved for restaurants and include fees for a full range of services plus Common Area Maintenance (CAM).
Modified Gross Lease: Your rent remains at a fixed rate but is paid in one annual installment. Additional fees are paid at the same time but are subject to regular increases.
Location
Your office space complete with meeting rooms needs a location with convenient transport links. A creative space for meeting rooms like E88 Bangkok is one of the good examples.
Your visitors might prefer using their own vehicles so look for a rental opportunity with adequate parking facilities. Commercial office space for rent is often situated above a retail complex which introduces you to the complication of an Anchor Tenant.
This can be a large store belonging to a national chain or a collection of small retail outlets. If the anchor tenant moves elsewhere your lease could contain an automatic termination clause for your landlord.
Renovations
When viewing an office space you might wish to invite a building contractor along to provide an estimate on how you can adapt the unit into the office of your dreams. These renovations are referred to as Lease Build Out Credits. Depending on the terms of your lease, your landlord could contribute to their cost or offer a rent reduction.
If the property is in a poor state of repair you can seek a Rent Abatement which waives some or all of the rental fee until remedial work is completed.
Size
The amount of office space you need depends on how many visitors you’ll receive in your meeting rooms. The suggested allowance of 150 sq.ft. for each office, employee accounts for desks and equipment. Retail and restaurant settings require only 15 sq.ft. for each customer.
Consider how your rooms will be arranged. Will there be one large table or several rows of chairs? How many people will attend a single meeting? Multiply the number of visitors by the appropriate space required to find the total square footage you need then budget accordingly.
Conclusion
Never sign a lease without having the details explained to you by a lawyer. Ensure you understand the exact type of lease you are being offered, what you are liable for and if there is a termination clause. How to lease office space safely depends on thorough research and clear thinking as once you’ve signed on the dotted line there’s no turning back.
