Whether you are searching for your first office or looking at new premises to accommodate the growth of your business, finding the perfect office space can be an exciting time. However, renting a commercial office space is a huge responsibility. Certain leases could influence the way your business runs and may have an impact on the success or failure of your business.
Thus, it is important to be aware of different factors before signing an office lease to ensure that you get the best deal and know exactly what you have signed up for. It is crucial that you avoid any unwanted surprises.
Keep reading to find out 5 things you should know and do before signing an office lease.
- Know all your options
Before signing an office lease, it is important to understand that there are different ways in which you can launch your business. There are many different types of office and rental spaces available in most big cities. In New Zealand, serviced offices have been in high demand over the last few years.
You can visit www.servcorp.co.nz/ to find some office facilities at premium locations that are available across New Zealand. Serviced offices provide short term lease agreements, giving added flexibility to your business. It is important to be aware that not all offices require you to sign long-term leases.
- Understand the differences between a commercial lease and a residential one
It is easy to assume that all leases work the same way. However, a commercial property lease is commonly more distinct and complex than a residential lease. It follows the same concept of an owner and a tenant but signing a commercial lease is much riskier.
For instance, there are no standard forms or agreements involved in signing a commercial lease. Every lease is customized according to the needs of a landlord. Most contracts are also long-term and binding and usually more negotiation is involved before signing a commercial lease. It is important to be aware of these differences so you know what to expect before signing an office lease.
- Additional rent
It is important to be aware of any additional rent charges. Many leases include extra rent charges, usually in the form of “triple net expenses”. This means that you will be required to pay your share of real estate taxes, building maintenance and general building operating expenses in addition to normal fees that are expected under the agreement.
Be aware of every expense to ensure that everything passed on to you is industry standard. If you do not want to deal with additional rent charges and looking at limiting your expenses, a serviced office is a good solution.
- Improvements and alterations
Before signing a lease, observe the property to see whether it contains all the facilities and services that you need. If you feel that improvements and alterations are needed, find out whether a written consent is needed. If you do not do this, there is a risk that you may not be able to operate your business.
Always discuss with the landlord if you need to make any changes to ensure that you are not breaching an agreement.
- Ensure the lease fits your business
Once you have found the perfect office, you need to think about whether the lease agreement meets the needs of your business. After finding out the amount of rent and any additional rent, think about whether your business can afford the office.
Consider the length of the lease to ensure that you are not tied down for too long if your business cannot afford it. The growth of a business is usually unpredictable and you may need to relocate sooner than expected.
Understand and be aware of all the clauses before signing an office lease. Seek advice from an attorney if possible so that you can secure a lease that is beneficial for you and your business.