Shot Term Vs. Long Term Kansas City Office Space Leases

Shot Term Vs. Long Term Kansas City Office Space Leases

It’s a well-known commercial real estate fact that landlords and agents typically want tenants to sign for a longer lease, but from a tenant’s perspective, short term leases are preferable. However, there are a few disadvantages to this conventional wisdom, as suggested in the article “Negotiating the Renewal Option”:

  • A short term lease means that the tenant loses negotiation leverage and often receives fewer concessions.
  • Often landlords are less willing to provide funding for improvements if the tenant only has a short term lease.
  • Tenant with the short term lease could potentially have to deal with higher rental rates in the future if they have to renegotiate for each renewal term.

Unfortunately, favorable renewal terms often depend on the flexibility of the landlord, which can’t always be counted on. A long-term lease might save the business money over time, but must be weighed against the risks of staying in one space for several years. It is important to spend a lot of time on the topic of these terms and renewals when you’re researching commercial rental space and in your actual lease negotiations.

If your business is interested in Kansas City office space for lease, give a commercial real estate broker in Kansas City call at 913-685-4100.

Share

Related Southcreek News

  • Kansas City Office Space for Lease OptionsKansas City Office Space for Lease Options When negotiating a lease, it is good to bear in mind that there are several options to consider and address.  Weighing the pros and cons of each of these could save your business some […] Posted in Blog
  • Executive Office Overland ParkExecutive Office Overland Park Looking for an executive office in Overland Park?  Here are some tips to help you in your search: Hire the best broker for the job.  If you are thinking about utilizing a broker, be […] Posted in Blog