Office Space For Lease in Kansas City: 7 Common Leasing Issues
Signing a lease is a big step for any small or new business. If you are looking for a commercial office space for rent in Overland Park KS, here are seven common problems that you might come across when you are going over your lease, as well as a few solutions for these issues, as outlined in “12 issues to consider when leasing a commercial office space”:
- The Lease Term: The term of a lease simply refers to how long it will last. When negotiating your lease, it is definitely a good idea to understand exactly how long your lease lasts before signing it. Few things would be worst than having to move out of your space earlier than you thought, so make sure your lease term is exactly the length you would like. Most landlords are flexible in negotiating leases with longer lease terms, since this means they don’t have to find a new tenant soon, so if you want a longer lease term you might also use this as leverage for other provisions you want.
- Subleases/Transfers: It’s definitely important to think about what will happen to your space over the years of the leasing term. If you think that you might need to move or your business might change within the next two or three years, it might be a good idea to ask questions about subleases and transfers. A sublease is when you allow another company or individual to rent out your space for the remainder of the lease term. Transfers are commonly referred to as assignments, and allow the tenant to transfer the terms of the lease to a third party. If the lease does allow a third party in either a sublease or a transfer, the original lessee must remember that they are liable for any damages this other party might cause during the remainder of the lease.
- Rent: A decision-driving factor that most people are concerned with at the beginning of their search is the rent of the space. It’s easy to get sucked into a situation where the rent starts off lower and ideal for you but then it escalates. So it’s important to pay close attention to the escalation clauses in your lease and to negotiate for a fixed rent for the entire term. Rent may fluctuate because of market conditions and perhaps even general the general financial status of the area or landlord. If you do have to accept escalations in rent, make sure you understand how and when the escalation will be calculated.
- Common Spaces: When thinking about signing your lease for your new commercial space you should physically visit and evaluate the exact space to find out what is really included in the rent. This means that you should discuss hallways, restrooms, elevators, lobbies and other common areas with the landlord. Understand where your office stops and another begins and exatly what square footage was quoted in your rental cost by the landlord. Having a clear understanding of the space will help you really determine whether the price is fair.
- Disputes and Resolutions: Companies that take legal action regarding their lease can accumulate costs relatively quickly if the dispute gets out of control. Some leases might include some sort of clause about this situation and how to deal with disputes. So it is a good idea, especially if you are a smaller and newer company, to look into alternatives to traditional court proceedings like mediation and arbitration. In these situations, neutral third parties could help facilitate discussions and solutions to disputes with a landlord.
- Security deposits: Before you sign your lease, find out what can and cannot be deducted from the security deposit you pay before moving in. The most common deduction from the security deposit is for general cleaning and large damages to the space. But remember there are laws that specifically prohibit actions relating to security deposits, so make sure you understand the expectations outlined in the lease.
- Repairs/Termination: Trying to negotiate a right to an early termination within your lease benefits you because you will avoid relying on a court to determine damages for the landlord and you will be in control of repairs. Before signing your lease, you should make sure you understand the conditions in which you can terminate a lease prior to any renewal that might be automatic. Also, before ending the lease, make sure that you know who is responsible for what kinds of repairs. This will help with both ending the lease properly and making sure you get all of your security deposit back,
So when going over your lease, make sure that you make a checklist with this information and it may save you some money in the long run! These common problems can be avoided with the right precautions and awareness.
If you are interested in commercial real estate in Kansas City, give one of our commercial real estate agents in Kansas City a call at 913-685-4100 and set up a tour with the commercial property management in Overland Park, KS.