Before you sign your final lease, make sure you take the time to go over a few things that could save your business money and hassle in the long run:
5. Think about asking for a CAM Stop lease. A CAM Stop lease means you will only pay for increases in CAM and property taxes after you base year (initial lease year). Even though the landlord might increase your base rent, this provision will eliminate some of the “mystery fees” from your rent. You could also ask for a cap on the CAM so that it will only increase by a certain percent that you have already negotiated.
6. Read the CAM definition. This is one of the most confusing parts of the lease, and you will want to make sure you aren’t paying for things that are not your responsibility. Things to look out for include things related to the landlords marketing efforts, legal fees for negotiating other leases, administration fees over 3%, benefits for the landlord’s employees, and any build-out expenses for other spaces.
7. Understand your capital expenditures responsibilities. “Capital Expenditures” in a commercial lease usually includes expenditures for major repairs/replacements (roof, foundation, HVAC, etc.). The standard for capital expenditures varies from state to state, but you will want to do your best not to have to bear the full burden of these costs. Perhaps talk to your landlord about limiting your obligation to regular maintenance or general repairs only up to a certain annual amount.
It is important to look out for these and other issues before you sign your office space lease in Overland Park.
Give us a call at 913-685-4100 to start talking about leasing an affordable office space in Overland Park!