It’s been said before, and it’s true. Timing is everything! With your office lease, as with everything else, you have to be in the right place at the right time. But research and planning can help.
Timing Your Office Lease
When negotiating the lease for an office space, the same issues frequently arise. This article is the first in a series of three articles that provide office lease checklists for office tenants to use to review their office lease.
Office Lease Checklist (Part 1)
When negotiating the lease for an office space, the same issues frequently arise. This article is the second in a series of three articles that provide office lease checklists for office tenants to use to review their office lease.
Office Lease Checklist (Part 2)
When negotiating the lease for an office space, the same issues frequently arise. This article is the third in a series of three articles that provide office lease checklists for office tenants to use to review their office lease.
Office Lease Checklist (Part 3)
The Chicago office space market is showing positive movement with decreasing vacancy rates, several large lease signings and continuing strong, but lessening new construction as we move through the year.
Q2 ’16 Chicago Office Space Market Summary: Part 1
Do you hear private conversations in the office next door, even if you shut your door? For some companies, this is merely a nuisance and productivity drain.
Soundproofing Your Office Space
If you are leasing office space, your lease should include an option to extend the term of the office lease. In tight markets favoring landlords, a well-negotiated office lease extension option can serve as a ceiling on rent for the new lease term.
Checklist for Negotiating Your Office Lease Extension Option
Twitter is one of the best social media platforms to connect with top commercial real estate leaders all over the world. Below is a list of ten commercial real estate leaders to follow on Twitter:
Top Commercial Real Estate Twitter Profiles
Often referred to as ROFR, the Right of First Refusal is a powerful tool for office tenants. A right of first refusal gives the office tenant the right to lease additional specified office space should an outside party express interest in that office space.
A Simple Checklist for Negotiating a Right of First Refusal
Lease contracts last many years, and over the years it’s easy to forget contractual obligations which effect the timing and cost of relocation.
First Steps in an Office Relocation
Most office leases include a relocation clause which allows the landlord to relocate the tenant to another suite in the building or office park.
Tenants Beware the Relocation Clause
Like every industry, commercial real estate has a language of its own. Let’s run through some of the key terminology you must know and understand when plotting your real estate strategy.
COMMERCIAL REAL ESTATE TERMINOLOGY
Office tenants searching for office space for lease or considering a lease renewal should tour competitive properties to research the market and enhance their negotiation position.
TOURING OFFICE SPACE FOR LEASE
Business owners should research their prospective landlord before they sign an office lease. Before entering a long term contract, office tenants should learn about the financial health of the landlord and his property.
RESEARCH THE LANDLORD BEFORE YOU SIGN YOUR OFFICE LEASE
Real estate is usually the second or third largest expense item for companies. Logically, then, many businesses focus on economics when looking for office for lease.
Office for Lease Search Tips
Every business is unique, with unique commercial office space needs. Likewise, every site selection proceeds according to the distinct characteristics of the business and market in question.
HOW TO FIND COMMERCIAL OFFICE SPACE
Using the “blend and extend” strategy, tenants trade an early renewal and extended lease length for more favorable lease terms (e.g., lower rent rate, additional capital improvements, fewer rentable square feet).
WHAT IS A “BLEND AND EXTEND”?
Illinois offers several economic development incentives to businesses. Businesses should consult with their commercial real estate broker to see if they may qualify for any of these programs.
ECONOMIC DEVELOPMENT INCENTIVES IN ILLINOIS
The first step in the negotiation process is setting objectives. Never enter into negotiations without a clear sense of your organization’s goals. Prioritize the goals, and start negotiating from the top of the list.
Real Estate Negotiation Tips Part I
In a commercial real estate negotiation (or any other negotiation), both parties have a hidden agenda. The hidden agenda consists of a party’s needs and break-even points.
Real Estate Negotiation Tips Part II
Many medical office tenants have special use requirements. If the business uses hazardous materials or generates biomedical waste or radiation, then the tenant must document these uses in the lease to ensure compliance.
HOW TO LEASE MEDICAL OFFICE SPACE
Tenants should always negotiate a lease renewal option into their commercial lease. The option to renew is a benefit to the tenant, allowing the tenant to extend the lease beyond the initial term and to limit the costs of renewal.
NEGOTIATING THE LEASE RENEWAL OPTION
Tenants should press for a Subordination and Non-Disturbance Agreement (SNDA) when negotiating their commercial lease, especially in today’s economic climate where foreclosures are more common.
SNDA’S IN COMMERCIAL LEASES
A thorough financial analysis of direct and indirect costs is necessary to make an informed real estate decision. Reliable financial analysis requires both technical ability and years of experience.
FINANCIAL ANALYSIS INFORMS REAL ESTATE DECISIONS