When negotiating a lease, it is good to bear in mind that there are several options to consider and address. Weighing the pros and cons of each of these could save your business some money or prevent future issues in your lease. Here are a few options to think about:
1. Option to renew. This is the most common option included in a real estate lease. Your landlord will want to raise the rent at the end of your initial lease period, so this is something you might want to address in advance—for instance, by getting an option to renew at a fixed price instead of renewing at the fair market price at the time. This could help you save money at the end of your initial term, especially if office rental rates have increased.
2. Short lease with one or more options to renew. This kind of lease gives you flexibility. Usually landlords give you a certain period of time before your initial lease ends to determine whether you want to renew your lease and to notify the landlord in writing that you would like to renew at a predetermined amount. This option might also include an extra fee for the right to stay, which would be determined at the beginning of your initial lease. Besides an increase in rent, the terms of the initial lease typically apply in the renewal period.
These are just a few options for your leasing possibilities (see the next post for some more). Be sure to consider what option is best for your business as you begin your negotiations for your Kansas City office space.
If you are looking for Overland Park office space for rent, give us a call at 913-685-4100 to talk about leasing with Southcreek!