MENU

3 Tips to Help Navigate the Leasing Process

By
office_leasing_tips_jll_hirise

As your business continues to evolve and grow, it is important to understand the office leasing process before embarking on such a commitment. Deciding between staying-put or relocating is crucial when deciding the future of your company and its employees.

Following certain tips can ensure an easier understanding of the leasing process and also make sense of commercial real estate (CRE) jargon. For example, did you know that a building will pay the leasing fee if it is successful? That means the tenant pays no fee for service.

  1. What Is Your Business About?
    It is important to have a clear understanding of what your business is all about before deciding which kind of lease suits you. Whether going long-term or short, knowing your business and its needs (amount of employees, office space size, potential growth, budget, etc.) will help with finding the right property. These key factors determine the requirements you should be considering when searching for a space.
  2. Breaking Down the Leasing Process
    First and foremost, you need to decide on a leasing agent. This person will be dedicated to inspecting various properties and providing you with an understanding of what is available in the marketplace. In some cases, it may be helpful to cast a wider net and go through more than one agent. However, having a single CRE real estate consultant (broker) allows for a deeper level of commitment and service to your needs. Ultimately, the choice is yours. But, if timing is a factor, you may need to have multiple options in your back pocket.Once a CRE consultant is chosen, they will provide you with an accurate list of properties to view. It is advised to check out a space more than once, making sure your list of needs and requirements are all met. Before deciding, take careful consideration of the space, your current business needs, and future growth. Making any kind of rash decisions on signing a lease could affect your business if you’re forced to move too soon.
  3. Negotiating Properly
    You found the office space of your dreams, or at least for the next five years – now what? The negotiations begin. The standard process is to submit a written offer or, to request one from the owner of the building. If time is of the essence, it is recommended to go through approvals with the board of directors for the building, as it will help speed things along.The next step is to agree on the commercial lease terms and sign a Heads of Agreement document, which will be provided by the building owner. Once this document is signed, a check in the amount of the first month’s rent is required in order to “officially” take the property off the market. Approving proper legal documentation comes next, with all parties involved needing to agree upon the terms. While straightforward, being prepared and knowledgeable about all documents can easily take the leasing process from being over several years to a few simple minutes.

 

Categories