5 Steps to Take Before Signing Your Small Office Lease in Kansas City
Before you sign your office space lease, make sure you have taken all of the necessary steps to get the most favorable lease possible. Here are a few things to check off your list before signing the dotted line, as suggested in the article “What Do I Need to Know Before Signing a Commercial Real Estate Lease”:
#1 Know the Jargon
Before tackling lease negotiations, it is important to study up on the terminology you will encounter. For example, you will most likely see the term CAM – Common Area Maintenance, a cost shared among all tenants.
#2 Read the Lease Carefully
Your brain will want to skim a tedious document like this, but take the time to read it closely to make sure everything is in order. Don’t be afraid to ask clarifying questions if there are parts that seem confusing. Carefully note all of your obligations, as well as the landlord’s, as you read.
#3 Prepare Your Business
Make sure that your business has its financial and legal ducks in a row before entering the lease. Don’t forget to file your Articles of Organization or Incorporation, and be ready to provide a guaranty – you will most likely not get out of doing this, but remember that guaranties are negotiable.
#4 Check for Assignability
Check to see that you can assign the lease in the event that you need to sell your business. Location might be a big part of the appeal for a buyer, so if a landlord can terminate your lease over a change of ownership, this decreases the value of your business in the eyes of a potential new owner. Try to include an assignability provision, if only just in the case of the sale of your business, though remember that the landlord will still want to vet the new owner for their financial responsibility.
This is so important – the lease you were given is not set in stone! As you read the lease make a list of provisions that you still want included or ones that you do not like and talk these over with the landlord – you never know what they might be willing to concede.
Once you’ve found a space and settled on the rent, don’t forget to take these few extra steps before signing the lease!