4 Things a Startup Should Consider When Renting a Kansas City Office Space

Selecting an office space is a monumental task for any company, but it is particularly challenging for young companies doing it for the first time. While landlords typically want a tenant to stay for 5 to 7 years, this is often not ideal for new, growing companies who don’t really have an idea of where their business will be in the near future. While this can be a bit of a pickle for startups or growing companies, the key to finding a suitable office space is thinking about the specific needs of your business. Here are a few things to consider when searching for an office space, as suggested in the article “Choosing the Best Office Space for Your Startup”:

#1 Layout

To figure out what kind of layout your business needs, think about what kind of company you are. For example, if your work is based in creativity or even technology, you might want to follow the open office space trend to foster an environment of collaboration and idea sharing. However, if you are a law firm, you might want something with more private spaces so clients can feel that they can discuss sensitive issues in a more one-on-one environment. If you think your company could benefit from contact with similar businesses, look into options that allow you to share kitchen space or conference room with other tenants. This might give you an opportunity to meet and work with other small businesses that complement yours.

#2 Special Features

Make sure that an office space has all of the amenities that your business requires. A good way to approach this is to think of things to your business absolutely needs and things that you would ideally like to have. Think about not only features within the space, such as the kitchen or conference rooms, but also things like the parking spaces or restaurants and other amenities services in the area that your employees might need.

#3 Lease Length

New startup companies typically want to aim for leases that are on the shorter side. You might only have a handful of employees now, but that number could grow and a matter of months. Keep an eye on your long-term business plan as you look at spaces, and try not to get locked into something that could stifle your growth. Talk to landlords about your options if your company grows, such as subleasing space or having the potential to expand into other space on the property.

#4 Cost

This obviously needs to be a bottom line in your decision. While businesses often calculate costs according to the price of the space per employee, it might be helpful for new business to think about how much you can actually spend per month total for your team. Don’t forget to factor in things like utilities, furniture, and other hidden fees, as these things can quickly increase the total cost of the space. Remember that a lot of these things will differ depending on the location where you are looking. It is important to give yourself several months to research and plan a transition before actually moving.

If you are a small business looking for your first office space, is important to have a good idea of what you want before you begin the negotiations. Often this is the kind of decision that can make or break a business, so make sure to consider it from every angle before investing in a rental space.

Are you an entrepreneur looking for a small office lease in Kansas City? Give a commercial real estate broker in Kansas City a call at 913-685-4100 for more information about our available office spaces.

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4 Types of Signage for a Kansas City Office Space

Signage is an important question to consider when looking at an office space for lease. Here are a few possible kinds of signage or identity options a landlord might offer to tenants in a multi-tenant property, as suggested in the article “Got Signage?”:

  • Building Signage – tenants can often get signage somewhere on the side of the building. This can allow multiple tenants of the building to all have signage with anchor tenants higher up on the building and others on other parts of the property, such as the parking garage.
  • Exclusive Building Signage – this means that a tenant has exclusive rights to put their sign anywhere on the building, typically at the top. Usually this right goes to an anchor tenant or one that leases the most space, possibly multiple floors.
  • Monument Signage – many office buildings have monument signs with room for multiple tenants listed on them. The monuments could hold just two or three signs, or as much as ten.
  • Exclusive Monument Signage – in some cases a high paying or anchor tenant might negotiate to have their own monument sign in front of the building featuring only their company.

Be sure to talk to your landlord about your signage options before signing a lease!

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

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Shot Term Vs. Long Term Kansas City Office Space Leases

Shot Term Vs. Long Term Kansas City Office Space Leases

It’s a well-known commercial real estate fact that landlords and agents typically want tenants to sign for a longer lease, but from a tenant’s perspective, short term leases are preferable. However, there are a few disadvantages to this conventional wisdom, as suggested in the article “Negotiating the Renewal Option”:

  • A short term lease means that the tenant loses negotiation leverage and often receives fewer concessions.
  • Often landlords are less willing to provide funding for improvements if the tenant only has a short term lease.
  • Tenant with the short term lease could potentially have to deal with higher rental rates in the future if they have to renegotiate for each renewal term.

Unfortunately, favorable renewal terms often depend on the flexibility of the landlord, which can’t always be counted on. A long-term lease might save the business money over time, but must be weighed against the risks of staying in one space for several years. It is important to spend a lot of time on the topic of these terms and renewals when you’re researching commercial rental space and in your actual lease negotiations.

If your business is interested in Kansas City office space for lease, give a commercial real estate broker in Kansas City call at 913-685-4100.

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What is the Difference Between Rentable and Useable Square Feet in a Kansas City Office Space?

What is the Difference Between Rentable and Useable Square Feet in a Kansas City Office Space?

Do you ever wonder why it seems that the price listed in a lease seems to be for more space than what you actually get in the office? One of the biggest sources of confusion for potential tenants is the difference between actual office space square footage and square footage listed for rent purposes. Rentable square footage typically incorporates not only the office space itself, but also common areas of the building. Because of this, tenants effectively pay rent for more space than they occupy and they need to be aware of this as they search for commercial space. Here are some clarifications of common misconceptions regarding usable versus rentable square footage, as outlined in the article “Understanding the Common Area Factor: Rentable vs Useable Square Feet:”

Usable Square Footage

Usable square footage is typically defined as the space a tenant actually inhabits. In smaller rental properties, this might simply be the area inside your office suite, which does not take into account entry or exit areas or columns – so the space is measured as if the columns don’t exist. However, janitor closets, restrooms, elevators, lobbies and corridors are factored into the square footage and the tenant is responsible for a certain percentage of the cost of these spaces. Larger spaces that consist of a full floor or multiple floors include everything in this area such as restrooms, mechanical and electrical rooms, etc. These full floor tenants also are responsible for a portion of common area expenses – even ones that aren’t on their floor – such as the main lobby of the building.

Rentable Square Footage 

Rentable square footage is every inch of floor space in a property, including restrooms, electrical rooms, and janitor closets. This excludes things like holes in the floor for stairwells and elevators, but every other space is included in the rent. The cost of the rent then consists of the listed rentable square footage multiplied by the lease rate per square foot. There are calculations to help determine rentable square footage for different size tenants. For instance, a less than full floor tenant should multiply usable square footage by the floor common factor, then take this number and multiply it by the common factor of the building. A larger tenant would also multiply usable square footage by the common factor of the building to account for shared spaces and amenities in the building.

The Common Area Factor

Another important piece in this puzzle is the common area factor, which is a number that accounts for the shared spaces on either a single floor or in the whole building. These common areas might either be used by all of the building’s tenants or be pro rata shares that are specific to one tenant suite.

  • Floor Common Area Factor – this number represents the tenant’s common areas only on their floor. It is different for different properties, but typically it is 8% of the space, meaning the factor is 1.08.
  • Building Common Area Factor – this consists of all the tenant common areas in the building and determines the rentable square footage number for which a tenant will actually pay. This also ranges from about 6-8%.

Quoted common area factors in a listing are typically a combination of the floor common area factor and the common area factor for the building. Often the total common area factor is is around 12-20% based on the building. In different markets, sometimes these calculations are slightly different, so it is important to clarify with an attorney or an agent exactly what is included in the cost of rent and the listed square footage.

Making Comparisons

When considering your options, keep in mind the different common area factors or even the shape of the space and how it can impact your bottom-line cost. Use a usable square footage metric when comparing buildings just to make sure that you are consistent in the numbers you’re generating for evaluation. Bear in mind that two spaces that have the same rental rate might actually have different values based on the common area factors or even the efficiency of the space’s design.

Address all of these issues before you sign a lease, as there is very little that can be done after a lease is agreed upon. Make sure that your own legal representative verifies that the common area factor number that your landlord provides actually corresponds with the reality of the space. Again, this is one of those tricky parts of leasing and makes it worthwhile to work with an expert to ensure that you’re getting the best deal based on accurate information.

If your business is looking into commercial space for rent in Overland Park, give us a call at 913-685-4100 to find out more about our Overland Park office space for lease and potentially set up a tour.

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5 Ways To Grow Your Small Business in Your Kansas City Office Space

While many people attempt to start small businesses, it takes more than just the initiative to strike out on your own to maintain a successful small business.  Check o out these tips for succeeding in the small business world from other businesses that have found success, as outlined in the article “Helping Your Business Grow Series”:

1. Be Unique.  Find your niche in the business world—there is no point in doing something that someone else is already doing well.

2. Hire Smart. Practice mindful employment. Assess the gaps in your business and work to employ people who have the skills to improve your business in these areas.

3. Innovate.  The key to remaining unique is innovation.  If you are successful, other businesses will try to imitate what you do, but consistent innovation will keep you at the head of the pack.

4. Be Proactive.  Don’t wait for opportunities to come to you.  If you find a gap in the market that your business could fill, do it before someone else gets there!

5. Build on your Strengths.  Focus on what your business well and continue to find ways to do it even better.

The key to small business growth is consistent hard work and creativity!

If your business is interested in a small office lease in Kansas City, give a commercial real estate broker in Kansas City a call at 913-685-4100.

 

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Environmental Concerns to Consider When Looking for a Kansas City Office Space

Before you sign a lease on a space, you will want to make sure that you are not violating any environmental regulations and potentially even get an environmental inspection of the space. Here are some things to consider about environmental laws, the consequences for violating them, and what types of businesses should be concerned, as outlined in the article “Environmental Issues in Commercial Spaces”:

Environmental Laws

There are laws at the federal, state, and local level that combat contamination by hazardous waste and other byproducts created by companies. Here are a few pieces of legislation your business should be familiar with if you handle anything that could qualify as hazardous:

  • The Resource Conservation and Recovery Act of 1976
  • Clean Air Act
  • Toxic Substances Control Act
  • Occupational Safety and Health Act
  • Federal Water Pollution Control Act

These laws deal with chemical contamination of various kinds, including from underground tanks and other storage containers, as well as air pollution and the safety of employees when handling dangerous substances. You might want to look into local laws that are instituted only in your area as well.

Consequences of Violating Environmental Laws

Here are a few potential consequences to consider:

  • Safety and Lawsuits – The most obvious reason to be concerned about environmental contamination is because it directly affects your health, your employees’ health, the health of your customers, and the health of your community. An environmental disaster could be both personally and legally devastating to deal with, particularly if employees, customers or community members decide to sue your business.
  • Clean-up Costs – You might have to pay the bill for the clean up of any sort of contamination, even if you were only partially responsible for it. For instance, if you had a leak from storage tanks that other tenants had been using for years, the responsibility will be fully on you. Government agencies are capable of demanding payment solely from you, bypassing your landlord or other tenants who might have been the original source of the problem.
  • “Compliance with all laws” clause – Most leases include this clause, which holds you responsible for any contamination issues that may arise during your lease term, regardless of whether or not you were aware of the problem, or if the leak began before you moved into the space.

Types of Businesses With Potential Contamination Problems

A lot of businesses will never have to worry about these issues, but businesses in the following situations need to be extra aware:

  • Businesses that work with potentially toxic substances – remember that even if you only make a small contribution to a larger problem, you could still be held financially responsible.
  • Spaces near gas stations or former gas stations, where underground tanks could potentially leak into surrounding soil.
  • Businesses considering large remodeling projects that involve digging – i.e. paving a parking lot or building an addition to a building.
  • Spaces where prior neightbors or tenants worked with toxic materials – i.e. mechanics or dry cleaners.
  • Properties on or near a marsh or wetland – these areas are usually carefully watched by the EPA
  • Buildings with already existing problems that could continue to deteriorate, such as asbestos or bad paint.

Even if your business does not work directly with toxic substances, it is still good to be vigilant about other scenarios that could lead to environmental problems, such as former tenants, any storage in the ground around you, or just a poorly maintained property. Environmental issues tend to generate heated responses from the public and government officials, so do your best to prevent anything from happening on your watch.

If your business is interested in office rental space in Kansas City, give Kathy Woodward at DDI Commercial a call at 913-685-4100!

 

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5 Tips for Growing Your Small Business in Your Kansas City Office Space

It is important for small businesses to not only focus on getting through the day-to-day work routine, but to also constantly keep looking for ways they can continue to grow their business.  Here are some tips for growing your small business, as suggested in the article “Helping Your Business Grow”:

  1. Work ON your business.  Do not just get in the habit of working in your business—take some time to step back and figure out what is going well and what should be improved.
  2. Be positive.  Keep your work environment positive; make sure it is a place employees look forward to coming to every day, versus something they dread.
  3. Take a breather.  It is okay to step away every now and then to rest and rejuvenate so that you can return with full energy and enthusiasm.
  4. Build relationships.  Strive to develop strong relationships with your coworkers and other businesses you work with.  Make sure that goals are clear and consistent.
  5. Keep an eye out for new opportunities.  Even if you aren’t really looking for anything in particular, it is important to be open to new opportunities, rather than looking back and regretting missing something.

Don’t let your business stagnate because you’ve lost focus on developing it!

If you are interested in a small office lease in Kansas City, give a commercial real estate broker in Overland Park a call at 913-685-4100.

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The Benefits of Teamwork in a Kansas City Office Space Environment

More and more lately companies lately have been shifting to the mentality that teamwork is essential to success. Whether it is a sales team working together to strategize, teachers sharing lesson plans, or Google employees tossing around ideas about the most cutting edge technology, most business can benefit from the positive effects of teamwork. Here are just a few of the ways that teamwork can benefit your business, as suggested in the article “Building a Sense of Teamwork Among Staff Members”:

  1. Better Productivity – if employees are working together to divide up tasks in the most efficient way possible, they are going to be able to get more done.
  2. More Problem Solving Power – as the saying goes, two heads are better than one.
  3. Improved Use of Resources – this could even be the mental resources of the people themselves—if someone is particularly good at wording communications with clients, why not put their talents at the disposal of others in the office?

There are also benefits to the well being off your office that teamwork offers:

  1. Socialization – people are more likely to get to know one another and enjoy each other’s company when working as a team.
  2. Learning – employees can learn from the skills of their coworkers.
  3. Motivation – teamwork can unite a people behind a sense of purpose.

Consider what you can shift in your workplace to make projects more team oriented!

If you are interested in offices suites for rent in Kansas City, give a commercial real estate broker in Kansas City a call at 913-685-4100!

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5 Tips for Protecting Yourself if You Need to Break Your Kansas City Office Space Lease

Even if you are predicting nothing but sunny skies and steady growth for your business in the coming years, sometimes factors outside of your control can unexpectedly affect your business. Because leases are a sizable investment of your time and money, signing a lease always carries a risk in the event that you might have to end it early because of bankruptcy, being bought out, or forced to relocate for some other reason—a worst case lease breaking scenario.

On the other hand, a lease could begin to hurt your business because of the unforeseen success and growth you are experiencing. A best case lease breaking scenario would be needing to move because your business has outgrown the space.

Here are some tips for putting your business in the best possible position in the event of having to break your lease for any reason, as explained in the article “How to prepare your business for the best and worst cases in a lease”:

  1. Subletting or Assignment Clauses. Try to negotiate for the right to either sublet some or all of your space to another tenant, or assign the lease altogether to a different party. This can majorly alleviate the financial troubles you might run into by ending a lease—for instance, if your business needs to relocate to a different space.
  2. Personal Guarantees. Pay particular attention to this part of a lease, because it is not favorable to you as a tenant, though you can often negotiate to get it to a more reasonable point. A personal guarantee makes you as a business owner personally responsible for lease payments in the event that your business breaks the lease. For instance, if you have a five year lease and you break it after two years, you will have to pay the last three years of rent from your personal savings. Read the fine print on your personal guarantee to find out what you are responsible for. Landlords typically ask for a guarantee if they are making a lot of adjustments to a space for your business, so see if you can only be held responsible for improvements that specifically will be used by your business, or ask if the amount you might have to pay could decrease as you get closer to the end date of the lease.
  3. Disability or Death Clause. This clause calls for the termination of a lease if the business owner becomes disabled or dies. This might be important if you are a very small business, such as a law firm with just one lawyer and a receptionist.
  4. First Refusal Rights. This clause means that a landlord has to offer spaces adjacent to your offices to you first before seeking other tenants. This could be good for your business if you need to expand because you will save time and money that would be spent on moving. However, there is usually a small window of time for you to take advantage of these offers, and often you have to either match or exceed another customer’s offer for the space, so don’t let yourself be pressured into adding the space if the terms do not meet your needs.
  5. Relocation or Expansion Clause. Putting this clause in your lease means that you can potentially move into another space the landlord has available in the event that you grow and need a larger space. The specifics of this clause differ from lease to lease, but be aware of the basics and ready to negotiate for this perk.

Unforseen boons and setbacks happen to businesses all of the time, and the best way to prepare yourself is by anticipating every possible scenario while negotiating your lease!

If you are looking at commercial MLS listings in Kansas City, give us a call at 913-685-4100 to find out more about our office space for rent in Kansas City.

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3 Creative Ways to Find More Kansas City Office Space

It can be difficult for start-up businesses to acquire the office space they need on a shoestring budget. If your business is looking to maximize office space with minimal damage to your finances, check out these creative suggestions from the Forbes article “Thinking Outside the Box When it Comes to Office Space”:

Evaluate Your Staffing Needs

One way to deal with the need for space is to see if you can minimize the workforce in your actual office space. See if you can create internships or independent contractor agreements so that you do not have as many employees crowded in your office building.

Find Co-Working Space.

Co-working spaces are more flexible than a 3-5 year lease agreement, and allow tenants to rent on a yearly, monthly, or even daily basis. This can be great if your company is digitally based (and thus mobile) and you want to interact with other small business owners in a collaborative environment.

Rent Shared Office Space

This has similar benefits to co-working space, but might involve a more stable, long term arrangement. The practice of larger companies subletting extra space to smaller businesses has been a common trend in commercial real estate. You might even be able to rent as little as a desk or cubicle for a flat rate.

Do not give up on the idea of finding a good office space that fosters productivity just because you have a small budget—there are a lot of options out there!

If you are looking for a small office lease in Kansas City, give us a call at 913-685-4100 to learn more about our affordable office space in Kansas City.

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