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~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.

Perform a Financial Analysis Before You Rent Office Space

Rent office space?

When planning an office space move, a tenant should have his have tenant representation commercial real estate broker perform a financial analysis of alternative locations.  A financial analysis shows the true cost to rent office space at each potential location.

Many tenants make the mistake of focusing too much on the initial price per square foot of each location, neglecting other factors effecting cost to rent office space.  A financial analysis takes into account all of the financial variables in lease proposal (ie, base rent, operating expense  and other expense pass throughs, rent escalations, rent abatement, tenant improvement allowance) throughout the duration of the lease contract.

The financial analysis is often performed by a tenant representation broker, and presented in a spreadsheet to show the total occupancy costs over the lease, costs incurred each year, and a net present value to help you make an “apples to apples” cost comparison to other locations.

When hiring a tenant rep broker, make sure he has the experience and technical ability to perform a financial analysis.

At Golden Group Real Estate, we specialize in tenant representation real estate services for office space 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, or enter your office space search criteria below.


June 19, 2019

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