Commercial Realty in Kansas City | Southcreek

Working With Your Landlord to Renew Your Small Office Lease in Kansas City

One way to approach renewing your office space lease is to put yourself in your landlord’s position. Instead of thinking of your landlord as being on the opposing side of negotiations, consider how you can work together to achieve a deal that benefits both of you. Here are some tips for working with your landlord during renewal negotiations, as suggested in the article, Eight Tips for Negotiating an Office Lease Renewal:

Consider Your Landlord’s Concerns

Think for a moment about the main concerns your landlord has. Landlords are typically interested in avoiding difficult rental situations, the value of their spaces, and the current income (cash flow) they are making from the property. Be aware of how your landlord might prioritize these three things and how they fit together. For instance, property value and cash flow are related: property value is calculated based on cash flow during a certain amount of time, with a consideration of cash flow in the future. So you might be able to negotiate for lower rental rates during certain periods in exchange for paying an increased rate when your landlord needs that higher cash flow (i.e. when they are thinking about refinancing).

Find Savings for Both Tenant and Landlord

Both you and your landlord have the same goal of avoiding the difficulty and expense of relocating. Just as you do not want to set up in a new space, your landlord does not want an empty space on their hands and the headache of soliciting new tenants, negotiating a new lease, and dealing with improvements. And if you have been a reliable and respectful tenant, they might prefer continuing a relationship with you over the unknown. Talk with your landlord about the ways that your renewal can benefit them as well, and keep in mind the other party’s needs and concerns as you negotiate.

Sometimes concern for your landlord’s needs can result in a good deal for both of you!

If you are interested in commercial realty in Kansas City, give Kathy Woodward at DDI Commercial a call at 913-685-4100!

Six Tips for Finding the Best Deal for a Kansas City Office Space: Part II

The commercial real estate market can be difficult to navigate, but you can prepare yourself to become a pro. Check out these tips for finding the best commercial real estate deals, as seen in the article 7 Steps to a Hot Commercial Real Estate Deal:

#3 Be Ready To Walk

This goes hand in hand with having a plan. Real estate pros always have an exit strategy—the best deals are ones they know they can walk away from. Be on the lookout for damages that need repairs, learn to assess risks, and make sure you are always calculating whether a space fits in your budget.

#4 Find the Motivated Landlords

You are not the only one looking for a space; landlords are often looking for tenants. Your job is to find these landlords, particularly the ones who are ready to lease to you below market value. The best deals are often accompanied by a motivated seller—someone with a reason to lease to you at a low rate. Motivated landlords are usually more willing to negotiate.

Bring your business smarts to the table when you start looking for commercial property. Taking the time to develop a sharp eye and savvy negotiation skills can help save your business money in the long run and ensure you are satisfied in your new commercial space.

Is your business on the hunt for commercial realty in Kansas City? Give us a call at 913-685-4100 to find out about our available affordable office space in Kansas City!

4 Tips for Small Business Moving Out of the Home and into an Office Space in Kansas City

While running a business from home is a low-cost and low-risk way to start a business, often there comes a time when business owners feel the need to move into an office space—whether because their enterprise is growing or because they are going a little stir crazy at home. Here are a few tips for making the transition to an office space smooth and cost efficient:

#1 Consider Your Needs and Budget

When looking into commercial property, have an understanding of your budget on a per-square-foot basis. Consider how many offices or cubicles you will need at this point and in the future. If you are anticipating growth, look for properties with extra space you can expand into.

Also factor furniture, utilities, and IT expenses into your budget. Be sure to spend wisely; you might avoid excessive expenses by renting furniture and equipment or buying government surplus equipment. Another option is shared office space or a hot-desking environment in which employees share desks by working at the desk at different times throughout the day while the other person does other tasks.

#2 Look Into Serviced Suites or Offices

Spaces like these are usually located in busy business districts and are already fully equipped and are managed by a firm. They often have more flexible rental agreements and have easy options to upgrade spaces.

Though moving from the home to a professional space might seem like an overwhelming process, there are options and preparation work that can be done to make the jump less daunting!

If you are looking for office space in Kansas, give us a call at 913-685-4100 to learn more about our available commercial realty in Kansas City!

Maximizing Your Office Space in Kansas Square Footage

In a tough economy, one of the first places that businesses look to in order to cut costs is their real estate. Here are a few factors to consider when trying to maximize space efficiency, as suggested in the article “Office Space Density: The New Workspace Metric”:

Extra Space

It is possible to cut down real estate costs by simply eliminating extra space–a more appealing option than reducing staff. One of the first way that companies typically try to deal with extra space is through subleasing or terminating some leases at other branches and consolidating their locations.

Occupancy Cost Calculations

Companies typically calculate occupancy costs in terms of a few different measurements:

Employee per square footage costs
A percentage of revenue or sales that goes toward occupancy costs
The cost of occupancy per staff member

So a company’s first step might be to downsize space based on new revenues or new employee counts.

Better Utilization

After cutting down space to reflect the number of employees or the revenue the business is generating, the next step is to make sure that the remaining space is being utilized to maximum effect. Some studies show that businesses only utilize about 48 percent of their office space throughout the day. A poor economic climate has prompted companies to reevaluate this wasting of space and to try to do more with less space.

Office Density

Office density is calculated using the square footage per workstation, not including support spaces. This number is then translated into a net rental price. A lower office density means workstations have more space, whereas a higher density means less space per workstation. This measurement allows companies to more easily evaluate the efficiency of their office and to implement new techniques for maximizing space usage.

Office Space Trends

One common trend developing in the workplace is the open space plan. In this layout senior employees leave their private offices, joining the entire workforce in a more open, social, and collaborative environment. Open plans have the benefit of not only saving costs, but increasing space flexibility and promoting teamwork, communication, and even productivity.

Different plans work for different businesses based on their activities. However, all offices can benefit from taking a little time to reevaluate the efficiency of their spaces and seeing where they can reduce surpluses without sacrificing productivity.

If your business is looking for commercial realty in Kansas City, give us a call at 913-685-4100 to learn more about our office space for rent in Kansas City.

The Difference Between a Commercial Lease for an Overland Park Office Space and Residential Leases

Renting a commercial space is a big responsibility and can majorly impact the success or failure of your business, so it is important to understand the difference between leases for commercial real estate and residential real estate before approaching a landlord. Both legally and practically speaking, commercial and residential leases are very different. Here are some main distinctions between the two:

No standard agreements. Typically commercial real estate leases are not based on a standard agreement or form, but instead each lease is customized to the needs of the landlord. This means that you as a tenant need to carefully examine each lease agreement different landlords offer.
Less legal consumer protection. Commercial leases do not have the same protection laws that are in place in residential leases. For instance, there are no rules to protect a tenant’s privacy or limits on security deposits.
Long, binding terms. It is difficult to break or change a commercial lease, as it is a legally binding contract involving a lot of money.
Flexibility and Negotiability. One of positive differences from a commercial lease is that they are typically subject to more negotiation potential than residential leases, since landlords are often in need of tenants and willing to extend special offers or accommodate special features that businesses might need.

You might already be an expert on residential leases, but make sure you understand how commercial leases differ before you enter into negotiations for a space!

If you are interested in commercial real estate in Kansas City, give us a call at 913-685-4100 to find out about our available office suites for rent in Kansas City!

9 Ways to Save On Energy Expenses in Your Office Rental Space in Kansas City: Lighting

Saving energy is about more than just joining the green revolution; it can also be a big money saver for your company, and is just a responsible business practice. Check out this series of tips on how to reduce energy—and some expenses—in your workplace:

Tip #1: Flip Those Switches.

Lighting makes up the highest portion of a company’s electric bill, and another 4-5% of that bill goes towards counteracting the heat that light bulbs generate, so lighting is a good place to start reducing your energy inefficiencies.
Turn off lights at the end of the work day and the start of the weekend. If this is a difficult task to remember daily, then consider motion-detecting lights. These also help keep seldom used areas from eating up energy, and can be a good asset for a building’s exterior as well, keeping people safe, but not using more energy than necessary.
The best and cheapest form of light is, of course, the sun! So open blinds and doors and consider installing a skylight or two to take advantage of natural light. Be sure to do this only during times of the day and year when heat buildup from sunlight won’t cause cooling problems.

Making a few of these simple lighting adjustments can save your company money in the long run—and give you the satisfaction of being a green business.

Give Kathy Woodward at DDI Commercial a call at 913-685-4100 to find out more about our commercial realty in Kansas City!

Kansas City Office Space Tips for the Best Landlord-Tenant Relationship: During Tenancy

Here are a few final tips to consider when trying to build a good relationship with your landlord during your tenancy:

Tip #5: Pay Rent on Time or Notify Your Landlord Immediately if There’s an Issue
This seems like an obvious tip, but it is surprising how often business can forget or neglect to pay rent on time, which can lead to an ugly situation with your landlord. So pay your rent on time or even early if you can, or else notify your landlord ASAP if you are for some reason unable to pay your rent on time.

Tip #6: Always Be Reasonable and Courteous
It benefits no one to lose your cool in the face of problems with your tenancy, so remember to always be reasonable and respectful with any inquiries, requests, issues, etc. and the landlord will do the same in return. Remember that if you are a good tenant the landlord will want to keep your business, but there is always a give and take involved in establishing a relationship based on kindness, respect, and courtesy from both parties.

Performing what is expected of you in a lease, practicing good communication, and showing a little respect and courtesy can go a long way when dealing with a landlord. Just doing these simple things can help make your relationship with your landlord an asset to your business instead of a source of stress.

If you are interested in commercial realty in Kansas City, give a DDI Commercial real estate broker in Kansas City a call at 913-685-4100 to find out about our affordable office rental space!

Finding Kansas City Office Space for Beginners

Decisions about office space are some of the most unfamiliar and complex decisions facing small businesses have to make when starting an office. If you get too much space in a bad location, you will be stuck paying too much. If you get too little space you will find yourself having to move very soon. Figuring out how much space you need and the best location will help reduce the risks of moving to a new office space. Here are some questions to consider when relocating:

How much space do you need? Before you start your search, figure out how much space you will really need. That way you will not waste your valuable time looking at offices that are either too big or too small. Instead, take a little extra time to make an informed estimate about how much office space your business needs, then ask a real estate agent to only show you offices that within your size range.
Choosing an office location. Choosing the wrong location for your business could have a worse monetary impact on your business than only the cost of rent. Think about all implied aspects of selecting a location for your office in order to minimize costs while maximizing value.
Renting or Purchasing office space. Once you have figured out the proper size and best location for your office, consider whether it would be better for your business to lease or purchase space. There are advantages and disadvantages to both options, so you will need to consider which issues are most important to your business, weighing the pros and cons of each option before you make the decision.

Do not jump straight into the search for office space…do a little planning and research first!

If you are looking for commercial realty in Kansas City, give a DDI Commercial real estate broker in Kansas City a call at 913-685-4100 for information on our available spaces!

6 Tips for Renting Commercial Real Estate in Kansas City: Part I

One of the few upsides to this economic rough patch is that the real estate market for small offices is full of good opportunities. Here are a few tips for small business on how to capitalize on this chance to get a good deal on a small office rental:

Think Small – Landlords who previously were not interested in leasing to smaller tenants now want to diversify and are interested in dividing larger spaces into smaller ones for smaller tenants. This has increased the number of office spaces small businesses can consider in their searches.
Get the right duration. Whether you are looking for short term or long term, you have a decent chance of getting the lease length you want. Previously, landlords could set a lease length at around 5 years, and not have to negotiate, but now tenants have more of an upper hand. Smaller businesses should stick to one or two year leases, because you do not know how long you will be around, but thriving companies might consider taking the opportunity to get a long term lease.

Knowing a little bit about how the current state of the economy affects the real estate market can help you make informed decisions as you search for commercial realty in Kansas City.

If you think you want to move your business into a commercial space for lease in Kansas City, give us a call at 913-685-4100 and find out about our variety of available spaces for small businesses!

Determining Office Space in Kansas Location: Part II

There are many important factors to consider when choosing a location for your small business office. This process involves investigating a location’s demographics, potential competing businesses, state laws and taxes, how it fits in your budget, proximity to your supply chain, and more. After considering your business’s needs, the next step in the process is to evaluate your finances. Before you can figure out just what kind of space is in your budget range, you need to take into consideration a few other financial factors:

Minimum Wage – many states have a higher minimum wage than the federal minimum wage. You can check out the minimum wage rates by state on the Department of Labor’s website.
Hidden Costs – keep in mind that most spaces are not business ready. You will have to factor in costs of renovation, IT system upgrades, decorating, and other things along those lines.
Taxes – make sure you know the sales tax and income rates for the state, as well as property tax rates. Find out if moving your business across a nearby state line could lower your tax rates.
Government Economic Incentives – the location of your business can potentially make you eligible for government economic business programs, giving you access to state-specific loans for small businesses or other financial opportunities.

Want to talk to a commercial real estate broker in Kansas City about any financial question in your search for commercial realty in Kansas City? Feel free to give us a call at 913-685-4100!