When you have a business that’s growing and expanding. The temptation to have your own office is strong at this stage and you want to lease your office space. However, it is important to be aware of the many pitfalls that most businesses owners make when leasing for the first time.
Prioritize Budget and Function
Don’t choose a space just because it is pretty, shiny or expensive. Set a realistic budget first and be extra careful if you’re a start-up because you won’t be seeing profits for a considerable time. Opting for high rental rate just to own a beautiful office space may do more harm than good to your business. Remember your customers will come to you because of amazing service, not a plush office.
Be Practical, Not Vain
Many business owners get carried away when considering their own space and let their egos dictate their decisions, resulting in costly errors. Experts believe that instead of paying rent, if you pay more people, your business will have a better chance at earning margins.
Take the Fine Print Seriously
Give due attention to the fine print and be very careful when reviewing the commercial lease terms. Engage an experienced real estate attorney to represent you and seek their help in understanding the full impact and meaning of the terms. Typically, most contracts are drawn with the intention to benefit the landlord and missing the details can cost you dearly.
Consider Both Present and Future
A corporate tenant must carefully consider the present and the future financial status of his business when negotiating a office space lease. Unless he ensures that the terms of lease are in favor of his company’s present financial standing, he runs the risk of overspending. If there is significant success, your lease should allow to expand and in case of failure, the option to sublease should also be provided.
Engage a Broker
Another big mistake people make when leasing a commercial space is having a one-sided lease term that often means overpaying for the rent. Hiring a tenant representation broker can save you thousands of dollars as they understand the market conditions better.
Being aware of the above-mentioned points can help a corporate tenant from entering into a commercial real estate lease agreement that could cause loss to his business. Springbord employ a wide range of leading Internet-based capabilities, smart tools and technology and expert human resources to provide compelling, business-friendly and client-centric outsourcing services including commercial real estate leasing services. Springbord helps its clients drastically reduce costs, increase productivity, and drive business growth.