Real Estate News & Talk
~the RENT Blog~

The RENT blog gives you the resources and tools you need to make the best decisions regarding your real estate needs.  We cover a broad range of subjects regarding office space, tenant needs and what to look for when investing in property.

Office for Lease Search Tips, searching for an office lease

Office for Lease Search Tips

Office for Lease Search Tips

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.  On occasion, however, a business will focus exclusively on the rent at the expense of other important variables.  There are other quantitative factors which also impact a business’ office for lease costs, as well as qualitative factors worth serious consideration.

As I discuss in my article on financial analysis (see Perform a Financial Analysis Before You Rent Office Space), a commercial office for lease is a complex financial structure, and there are many factors to consider in determining its true costs to the tenant.  In addition to the base rent, tenants should consider the following variables in their site selection:

  • Rent abatement and rent escalation
  • Operating expense pass-throughs
  • Tenant improvement expenses and allowances
  • Options (renewal, expansion, contraction, cancellation)
  • Add on factor (rentable vs. usable square feet)
  • Relocation costs

There are also important qualitative factors to consider in a site selection.  In addition to the base rent, tenants should consider the following variables in their site selection:

Office for Lease Consideration #1: Location
  • Location of existing and future employee base
  • Synergy with area’s business environment (particularly important for medical office)
  • Proximity to customers
  • Ease of access
  • Area amenities
Office for Lease Consideration #2: Brand
  • What statement does the property and office make about your company?
  • Who will visit your office?  What conclusion do you want them to reach?
  • Will the facility’s image enhance or detract from your ability to hire quality employees?
Office for Lease Consideration #2: Employees
  • Do the majority of your employees live in a particular location?
  • Will your company lose employees as a result of relocation?
  • Which locations provide a sufficient employment base?

Businesses should retain a tenant representation commercial real estate broker to help with their site selection.  A tenant representation broker will calculate the true costs of each office for lease (the true cost DOES NOT equal rent) and will ensure that important qualitative factors are also considered.

At Golden Group Real Estate, we specialize in tenant representation for office users in the Chicago area, helping local business owners find office space and negotiate lease and purchase agreements. We never represent landlords, so we are prepared to negotiate aggressively on behalf of our tenant clients.

For more on Golden Group Real Estate, read about our real estate services.  Let us know if we can help you find office space for rent or buildings for sale.  Call us at (630) 805-2463, email us at troy@goldengroupcre.com, or enter your office space search criteria below.

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