Did you know that one of the biggest expenses incurred by a growing company is their office space? Most executive suites in Kansas City have different leases, so learning how to negotiate a lease that will satisfy your business’s needs and save you some money might allow you to hire some more employees or undertake a new project. Here are some tips to keep in mind while negotiating:
1. Term of your lease. There are positives and negatives to choosing a long term lease. On the one hand, landlords often make concessions for longer-term leases, but it is also important to keep in mind how the needs of your company might change during the course of your lease so a shorter-term lease with renewal options could be a good middle path.
2. Permitted use of the space. A lease usually includes a section dealing with how the tenant may use the space. It is usually in you as a lessee’s best interests to make this clause broad, in case your business wants to diversify or sublease the space to other businesses.
3. Operating costs. Operating costs, HVAC, and common area maintenance are things that your landlord might be charging you separately for. If possible, try to negotiate a cap on this amount or a fixed fee.
4. Increases in rent. A long-term lease rarely comes with fixed rent. Landlords often charge annual increases in accordance with increases in the Consumer Price Index (CPI). If at possible, see if your landlord will postpone this increase until two years into your rent. You might also try capping the amount of each annual increase or negotiating a predetermined fixed amount.
If you would like to ask any questions about negotiating an office space lease in Overland Park through Southcreek, give us a call at 913-685-4100!