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!
A renewal option and a short term lease with a renewal option are just a few possibilities for your business’s office space lease in Overland Park. Keeping in mind the future growth or changes of your business, here are a few more options to think about:
3. Option for additional space. Having the option to expand is very important for a growing business. A landlord might be inclined to grant the option for additional space if they feel that you might be an important tenant that could potentially attract other businesses, especially in a retail context. You will want to carefully examine the terms for renting extra space to make sure that option is in your business’s best interests. When you are negotiating your initial option agreement, you will determine with your landlord if you are going to pay for your expansion at the same per square foot price you are already paying, at the fair market price at the time, or at a fixed rate of increase.
4. Option to end the lease early. This option is becoming more popular in commercial leases. Often landlords offer this clause to important businesses with the goal of getting them to sign long-term leases and attracting other high profile tenants. If the tenant exercises their ability to terminate the lease early, the landlord will receive some sort of compensation.
It cannot hurt to look into all of your options as you are negotiating a lease to make sure that you can adequately communicate with a potential landlord the needs of your business.
If you are looking for an executive office in Overland Park, call and talk to one of Southcreek’s commercial real estate brokers at 913-685-4100 to talk about your vision for your ideal office rental space!
Finding the executive suites in Overland Park that will best serve your businesses needs involves some research and consideration. Some factors to think about discussed in a previous post include anticipation of your business’s growth, common area maintenance charges, and types of rent. Here are a few more to think about:
- Tenant Repairs and Improvements. Who is responsible for making repairs—the landlord or you? Find out during negotiations. You also might want to ask about what kind of improvements, including signage, you are allowed to make or not make.
- Renting and Subletting. If you do think you will use all of the space available, you might want to ask the landlord if it is possible for you to sublet that extra space, and what the specific terms of that action might be.
- Competing businesses. Some leases in certain locations include a clause that states that the landlord cannot rent space to similar businesses or your direct competitors within a specific distance of where you are located. Ask about this clause during negotiations if you think this might be an issue for your business.
- Parking and Access. If you will be having customers or clients frequent your business space, you might want to make sure they will have adequate and convenient parking space.
Knowing and planning out every detail of what you want in your executive office in Overland Park can help you navigate negotiations more successfully and smoothly.
If you want to learn more about Overland Park office space for rent in one of Southcreek’s many available buildings in the area, give us a call at 913-685-4100!
Looking for an executive office in Overland Park? Here are some tips to help you in your search:
- Hire the best broker for the job. If you are thinking about utilizing a broker, be aware that most commercial real estate brokers focus on only one or two types of property (i.e. warehouses or offices). Be sure to find a broker that has experience with the type of space you are looking for.
- Be careful with subleasing. If you want to sublease a space you are renting, make sure that you are aware of what your lease document says about this. Most landlords have the right to approve your subtenant. Remember that if your potential tenant defaults, you will still be responsible for the lease.
- Find the right amount of space for your business. This is a tricky line to walk, because not enough space can hurt your business’s productivity, but too much can be a waste of your business’s money. You might consider consulting a space planner, architect, or real estate advisor to accurately determine how much square footage you will use.
- Think about future real estate needs. Consider how you want your business to potentially grow in the next few years. Are you growing at a steady, moderate pace, or would you like to double your employees soon? Bear in mind that most leases are at least five years, so be sure not to commit to something that you will outgrow in the next year or two.
Keeping in mind these and other tips could be useful as you look for the best possible Kansas City office space for your business!
If you are looking for Kansas City office space for lease in the Southern Johnson County area, give one of Southcreek’s commercial realtors a call at 913-685-4100 to learn more about our available spaces!