9 Office Leasing Tips Every Businessperson Should Know

Creating A Level Playing Field
A tenant rents office space only a few times in their corporate life, while landlords rent space over and over again. Keep an eye on these 9 issues that are frequently overlooked and you are more likely to end up with a happy ending.

Carefully Review Your Operating Issues
Think about the mechanics of how your business operates as you are reading through the lease. Watch out for issues like (a) after hours HVAC service - is it available and how much will it cost?; (b) do you make higher than normal levels of noise at particular times?; and, (c) your employees/Tenants love to cook popcorn in the micro-wave in the afternoon and that is strictly forbidden by the lease.

Don't Neglect the Workletter
There are 3 main components to a lease agreement. The business points, the legal points and the workletter. The final negotiation item is the Workletter. In many cases, the landlord will give the tenant an improvement allowance in a dollar amount, which typically forces the tenant to deal with a Workletter. Not only does it state what each party is to pay, but also what happens if the cost of the improvements exceed the allowed amount provided by the landlord.

The Sublease Space Option
You've heard that you can get a really good deal on sublease space. It is true, but as with almost every benefit, there are increased risks.
o Financial condition of the sublessor should be investigated thoroughly. If they don't pay the rent, you suffer.
o If the sublessor files bankruptcy, your sublease is at risk.
o You are stuck with whatever terms and conditions negotiated by the sublessor with the landlord.
o There is usually no tenant improvement allowance to make changes. You will have to live with what you get or dig into your own pocket.