Thinking about leasing executive suites in Overland Park? Here are a few tips to keep in mind as you negotiate a lease:
Limit Rent Increases based on the CPI
Sometimes a landlord will insist on yearly rent increases corresponding with the percentage increases of the CPI—Consumer Price Index. If you run into this request, you can try to do two things. If possible, try to negotiate so that the increase does not start for at least two years. Also, see if you can determine a cap on the amount of each annual increase (i.e. no more than a 3% increase in any year).
Get a Broad Permitted Use Clause
If your landlord insists on a permitted use clause, at least try to make it as broad as possible, regardless of how broad your intended purpose is at the time. In the event that your business grows and changes, you will want that flexibility to be able to use your rental space in any legal, reasonable manner.
Don’t Let Your Lease Limit Improvements
Typically, standard leases state that tenants can only make improvements or alterations with the landlord’s consent. These provisions are usually too restrictive, so you should try to negotiate some changes. For instance, you might try to obtain the right to make changes costing less than $2500 or non-structural changes without having to get your landlord’s consent.
If you would like to learn more about leasing executive suites in Kansas City, phone one of our commercial real estate brokers at 913-685-4100!