There are a lot of factors that go into leasing a new office space for your business. It is tempting to think about just your immediate need for a new space, especially if you are getting cramped in your current one, but it pays in the long run to think about a variety of factors. Before signing a lease for an office space for rent in Overland Park, here are a few things to think about, as suggested in the article “10 Questions to Ask Yourself Before Choosing an Office Space”:
#1 Long Term Needs
Especially if you are a new business, you want to consider the long-term growth of your company and what your needs might be down the line. If your company can afford it, you might consider renting a little extra space – which would put some pressure on you to work hard to fill it. You can also try to negotiate for shorter lease terms with options to renew, or ask your landlord about first rights to renting a nearby space if it becomes vacant and your business needs to expand.
#2 Location of the Office Space for Lease in Overland Park
This is key in any real estate decision.You want to make sure that your new location will still draw your clients or customers – or that there is plenty of potential for a new client/customer base. For example, your business might be getting a deal by moving to the suburbs, but will this be cancelled out by a loss of clients?
Another aspect of location to consider is the effect on your employees. If your new location will necessitate a long or expensive commute for them, you might be in danger of losing employees. Consult with key staff members before making this decision so that you know where everybody stands.
Before you even consider renting a space, make sure your ducks are in a row in terms of budget. Particularly if you are a new company, a potential landlord will most likely want to see tax returns, financial references, bank statements, and possibly rent upfront or a bank letter of credit. You will also need to pay a security deposit and maybe even offer a guarantee. Some small businesses need to have owners offer a personal guarantee, but try to avoid this at all costs, as you will then be personally liable if your business can no longer afford the space.
#4 Right Atmosphere
Not only do you want to make sure you are in the right location for your clients, but also that the design of the space itself sends the right message. If your space looks too expensive, clients might be wondering about what their money is really going to, but on the other hand, if your space looks too cheap or dingy, clients might be concerned about whether your business is financially stable.
Does the building have enough parking? What is the cost of parking to customers and employees? Think about how convenient it will be for both customers and employees to park, and try to do things like validate customer parking tickets or get special parking rates for employees. If parking is too much of a hassle, you run the risk of losing both clients and customers.
Also make sure that the building is up to the standards of the Americans with Disabilities Act. If a building isn’t currently in compliance, this could be a huge expense to your company down the line.
#6 Lease Ownership
Make sure you know exactly what will happen in the event that you want to sell your company or move to a different space. Some leases will hold previous owners liable even if they are no longer in the space, so make sure your lease is clear about this, and talk about the possibility of an assignment clause or subleasing.
#7 Lease and Rental Rate Security
Even if you aren’t sure what your business will look like in a few years, you want to negotiate thinking as long term as possible. It would be terrible to get settled into a space for a few years, only to find that the landlord is ready to rent to someone else. If possible, negotiate for options to renew, as well as put a cap on rent increases (for example, no more than 5%).
From looking at potential spaces, to preparing your company, to negotiating the lease itself, there is a lot of legwork that goes into acquiring a new Kansas office space for rent for your company. Do your homework upfront and make sure you know what you are getting yourself into before making any big decisions.
It might also be helpful to work with a tenant broker – there are even some that work with startups specifically – because this person can help you navigate the nuances of the commercial real estate market and lease negotiation.