If you think it might be time for your business to relocate, now is the time to do it, especially if you are a small business. The current economy has forced landlords to be more open to renting to smaller tenants, increasing your office space options. Here are a few more tips for how to capitalize on this opportunity:
3. Try to get concessions. Do not accept the rent rate at face value. Landlords are so desperate to generate any revenue from a property, that they will be more open to negotiation, so you might be able to get lower-than-advertised rent rates. Landlords will ideally want to lower rent in the form of improvement dollars, which means they will subsidize renovations to the space, or give you a rent-free period, so that it does not seem like rent prices are actually going down. You might also be able to negotiate a cap on rent increases in anticipation of inflation in the future. Another thing you could negotiate for is perks like parking spaces, garbage removal, maintenance and repairs, or snow-clearing if necessary.
4. Take the security deposit seriously. Landlords find these very important because they are concerning about the risk of tenants failing in the recession. If you are moving into a new space, your security deposit will most likely be about 10% of your total lease, and you might also have to provide a letter of credit or a personal guarantee. The only possible exception to this rule is subleases, which might only be able to afford to ask for one or two months’ rent as the deposit.
Do a little research so you are aware of all of these aspects of relocating your business, especially in this economy!