4 Signs It’s Time For Your Business to Find a New Kansas Office Space for Rent

 Kansas Office Space for Rent

Let’s face it, moving can be a pain. There are movers to hire, files to pack up, and employees to convince. But although moving is an inconvenient hassle, not moving could have much worse long-term consequences for your business if it is really time to go. As you brainstorm this decision, check out some of these signs that it might be time for your business to look at different office spaces for rent in Overland Park, KS, as outlined in the article “5 Clues That It Might Be Time for New Office Space”:

#1 Your current Kansas office space for rent is feeling small. 

One sign that it might be time to move is that your business is running out of space for you to grow into. This is actually a good problem to have because it means your business is thriving – though that success could be short-lived if you cannot cram another desk or filing cabinet into your space, let alone hire much-needed new employees. If you have plans to grow your business, don’t wait until the last minute to start looking for a new space, or you could find yourself in a tough negotiating position or making a hasty decision that isn’t in your best interests.

 Kansas Office Space for Rent

#2 You cannot afford your current office space for rent in Overland Park.

If your rental payments are seriously cutting into your profits, you need to look for a place that’s a bit more thrifty. A swanky office space downtown is certainly enjoyable for you and your employees, but it isn’t great for your business’s sustainability. If you are in a tough financial position or are looking to cut back on your rent, try to work with a broker who will help you stay within your budget.

#4 You’re having trouble hiring/keeping good employees. 

If your turnover rate is high and you are having trouble attracting potential hires, ask yourself whether your office space is playing a role in this problem. Your space says a lot about your business, so if it is too crowded, run-down, or simply disorganized, new candidates or employees are not going to want to stick around. An upgrade might help you find and keep talent.

office space for lease in Overland Park, KS

#5 Your current office space for lease in Overland Park, KS, just isn’t working. 

A space could be a poor fit for a variety of reasons. One problem might be a lack of privacy. Open office space for employees to collaborate is certainly “in” right now, but not everybody works well out in the open – or at least not all of the time. People need privacy sometimes for meetings, phone calls, or simply to power through a project, so an office space that doesn’t offer that could be seriously hindering productivity.

Another problem with a space could be a mismatch with your brand or company culture. If you run an edgy start-up but are working in an old, drab space, there is a dissonance there that can negatively affect your employees and send the wrong message to clients. You want your space to match your brand so it subtly communicates the importance of your business’s core values.

If one of these signs sounds like your business, it might be time to move to a new space. Moving can be a pain, but it can also be exciting for your business as a sign of growth, innovation, or simply a fresh start. As you look for spaces, give yourself plenty of time to narrow down your choices, and work with a broker who will keep your business’s interests at the forefront.

If your business is looking to rent office space in Overland Park, give us a call at 913-685-4100 to find out more about our affordable spaces!

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Renting Commercial Real Estate in Kansas City: 5 Tips for Dealing With Rising Rental Rates

Renting Commercial Real Estate in Kansas CityRent premiums across the country have gone up by 11% or higher in cities with prime commercial real estate. From Midtown Manhattan to Santa Monica, growing businesses are unable to even find a space, let alone afford the exorbitant rental rates on top of the usual expenses of buildouts, IT, furnishing, etc. once they sign a lease.

So what is a business to do? The biggest factor businesses usually consider when signing a lease is the risk associated with the length of the their lease and the amount of space they are renting. If a business rents commercial real estate in Kansas City that doesn’t leave room to grow, they risk hitting a point where they are bursting at the seams before the lease is up. But if they rent a little extra space to plan for growth, and that growth doesn’t come, they are paying money down the drain.

Fortunately, there is a small glimmer of hope emerging in the commercial real estate market for those who are willing to think outside of the box. Here are some tips for re-invisioning the commercial real estate rental process while still protecting your business, as suggested in the articles “Criteria to Consider When Renting Commercial Space” and “How to Get a Handle on Exorbitant Office Rents”:

#1 Take your time looking for office spaces for rent in Overland Park.

Renting Commercial Real Estate in Kansas CityOne surefire way to end up overpaying for lease is to rush the process. Start looking for a new space long before you actually need to move. Giving yourself more time will not only allow you to see more options, but it will increase your leverage in negotiations.

#2 Assemble your criteria for a Kansas office space for rent.

To help you keep your eye on what is really important to your business, go into the search process with a clear list of criteria. Here are a few questions to consider:

  • How much space do you need?
  • What is your budget for rent? For other expenses like buildouts?
  • What do you need in a location? (i.e. foot traffic, proximity to public transport, etc.)
  • What features do you need? (i.e. conference rooms, private office spaces, a reception area)
  • What features do you want to improve the efficiency of your business? (i.e. inexpensive power sources, employee parking on-site)

Relying on this list can ensure you don’t get caught up in other flashy features that your business can’t afford.

#3 Work with the right team.

Renting Commercial Real Estate in Kansas CityOnce you have your list, find a good commercial real estate broker who works for tenets, not landlords. Find someone knows the market and location inside and out. Work your way down to two or three final options, then start negotiating your lease. Before you sign the lease, hire one more team member–a real estate attorney who can double check your lease for any pitfalls or places where you could ask for more. Working with a great team might be a little more expensive for your business upfront, but getting a solid lease could save quite a bit of money in the long run.

#4 Embrace the uncertainty of finding a commercial office space for rent in Overland Park, KS.

Everything about modern life is moving away from a  “one-size-fits-all” mentality. Companies like SaaS are introducing software models that allow for scalability and flexibility, and business rental could move in a similar direction in time. Right now the leasing industry is stuck in an old mentality, but as businesses demand more flexibility and scalability, there is the hope that things will progress.

In the meantime, it is okay to be afraid of the uncertainty of commitment, because the current market system is looking to maximize broker commissions, so it is a good option to keep your risks and liabilities low and maximize cash flow by signing short term leases.

#5 Cut costs with non-traditional models.

If you think about it, office space rental is your business’s biggest expense after payroll, so you want to consider ways you can maximize the efficiency and productivity of your space while minimizing costs. As mentioned earlier, businesses have two apparent options: rent a space that fits your business and risk outgrowing it, or rent a space that is too big and risk paying too much if you don’t fill it.

But there are other alternatives – for example, office sharing. Office sharing provides more flexibility within the traditional options:

  • Rent part of a space on another business’s lease so that you have more flexibility to expand or downsize as needed.
  • Rent a larger space for you to expand into, but offset the expense by sharing the space with another business until you need the space.

This is one example of a creative way to optimize your space and bring down expenses, but there are others, ranging from hot-desking to giving employees more flexibility to work from home. You just have to think outside of the traditional office space box.

If your business is interested in an office space for lease in Kansas City, give us a call at 913-685-4100 for more information about our available spaces!

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4 Financial Terms You Need to Know When Leasing Kansas Office Space for Rent

Rent is not the only expense you have to plan for when signing a lease for commercial property in Overland Park, KS. There are a lot of different hidden costs and fees associated with a space, so make a list of questions to ask before you actually start looking at office spaces for rent in Overland Park, KS. Here are a few terms to be familiar with that can help you avoid being blindsided by major financial consequences down the line, as defined in the article “Three Things to Keep in Mind with Your Commercial Lease”:

  1. Commercial Rent – This is the rental rate you will find on a listing. You will want to double check this when you visit a space to make sure that the square footage listed is actually usable square footage.
  2. Effective Rent – This is the actual rate you will end up paying during your tenancy and includes factors like tenant improvement allowances, concessions, and escalations over the years. All of these things vary greatly by landlord and property, so you need to get an idea of what these are before truly being able to compare spaces. A commercial real estate broker can help you understand what is common for different markets, so they can be a valuable resource in determining the true bottom line rental rate of a space.
  3. Escalation – This is the increase in rent per square footage your business could be charged after your base year of the lease (usually your first full year).
  4. Expense stop – This is the means of determining escalation; the expense stop is the amount that the landlord pays towards operating costs of the building, and anything beyond that will be charged to the tenant in the form of escalation following the base year.
  5. Tenant Improvement Allowances – This is the amount a landlord might allocate for major improvements to a space, which are becoming more popular in the era of creative zones, cafes, and collaboration rooms. As you’re thinking about your TI, make sure you think about whether you or the landlord ultimately has ownership of the improvements. Don’t invest so much in your space that you are at a disadvantage when lease renewal negotiations come, or negotiate upfront a lease structure that will allow you to best take advantage of these improvements.

Being aware of all of these financial factors is a crucial prerequisite to signing a lease. Not only do you need to make sure that your business has the budget for a particular space, but knowing these different variables will help you more accurately compare spaces to get the best deal possible.

Working with a broker can really help you understand these costs in commercial space for rent in Kansas City, particularly how the market in a certain area affects them. Make sure that the broker you are working with is actually working for you and is not representing the best interests of the landlord.

If your business is interested in looking at Kansas office space for rent, give us a call at 913-685-4100 to find out more about or affordable office space for lease in Overland Park.

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7 Things to Consider Before Leasing Kansas Office Space for Rent

There are a lot of factors that go into leasing a new office space for your business. It is tempting to think about just your immediate need for a new space, especially if you are getting cramped in your current one, but it pays in the long run to think about a variety of factors. Before signing a lease for an office space for rent in Overland Park, here are a few things to think about, as suggested in the article “10 Questions to Ask Yourself Before Choosing an Office Space”:

#1 Long Term Needs

Especially if you are a new business, you want to consider the long-term growth of your company and what your needs might be down the line. If your company can afford it, you might consider renting a little extra space – which would put some pressure on you to work hard to fill it. You can also try to negotiate for shorter lease terms with options to renew, or ask your landlord about first rights to renting a nearby space if it becomes vacant and your business needs to expand.

#2 Location of the Office Space for Lease in Overland Park

This is key in any real estate decision.You want to make sure that your new location will still draw your clients or customers – or that there is plenty of potential for a new client/customer base. For example, your business might be getting a deal by moving to the suburbs, but will this be cancelled out by a loss of clients?

Another aspect of location to consider is the effect on your employees. If your new location will necessitate a long or expensive commute for them, you might be in danger of losing employees. Consult with key staff members before making this decision so that you know where everybody stands.

#3 Finances 

Before you even consider renting a space, make sure your ducks are in a row in terms of budget. Particularly if you are a new company, a potential landlord will most likely want to see tax returns, financial references, bank statements, and possibly rent upfront or a bank letter of credit. You will also need to pay a security deposit and maybe even offer a guarantee. Some small businesses need to have owners offer a personal guarantee, but try to avoid this at all costs, as you will then be personally liable if your business can no longer afford the space.

#4 Right Atmosphere

Not only do you want to make sure you are in the right location for your clients, but also that the design of the space itself sends the right message. If your space looks too expensive, clients might be wondering about what their money is really going to, but on the other hand, if your space looks too cheap or dingy, clients might be concerned about whether your business is financially stable.

#5 Accessibility

Does the building have enough parking? What is the cost of parking to customers and employees? Think about how convenient it will be for both customers and employees to park, and try to do things like validate customer parking tickets or get special parking rates for employees. If parking is too much of a hassle, you run the risk of losing both clients and customers.

Also make sure that the building is up to the standards of the Americans with Disabilities Act. If a building isn’t currently in compliance, this could be a huge expense to your company down the line.

#6 Lease Ownership

Make sure you know exactly what will happen in the event that you want to sell your company or move to a different space. Some leases will hold previous owners liable even if they are no longer in the space, so make sure your lease is clear about this, and talk about the possibility of an assignment clause or subleasing.

#7 Lease and Rental Rate Security

Even if you aren’t sure what your business will look like in a few years, you want to negotiate thinking as long term as possible. It would be terrible to get settled into a space for a few years, only to find that the landlord is ready to rent to someone else. If possible, negotiate for options to renew, as well as put a cap on rent increases (for example, no more than 5%).

From looking at potential spaces, to preparing your company, to negotiating the lease itself, there is a lot of legwork that goes into acquiring a new Kansas office space for rent for your company. Do your homework upfront and make sure you know what you are getting yourself into before making any big decisions.

It might also be helpful to work with a tenant broker – there are even some that work with startups specifically – because this person can help you navigate the nuances of the commercial real estate market and lease negotiation.

If your business is interested in office spaces for rent in Overland Park, KS, give us a call at 913-685-4100 to find out more about our commercial space for rent in Kansas City.

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5 Tips for Renting Commercial Property in Overland Park, KS, in a Tenant’s Market

The Recession of the Late 2000s was certainly not an ideal turn for small businesses, but times of economic crisis do have on advantage for businesses: it is often a great time to hunt for office space for lease in Overland Park, KS. This has been especially true for small businesses, since larger businesses are downsizing and often subleasing spaces. For small business who act quickly, there is the possibility of being able to choose between multiple offers from landlords, and even leverage those different offers into negotiation power. Here are a few key tips for small business who want to take advantage of this renter’s market, as suggested in the article “6 tips for renting small business space”:

#1 Look for small Kansas office space for rent

One result of an economic downturn and a tenants’ market is more available spaces for businesses, but typically small ones. Landlords are looking for security and want to diversify their leases, so they are starting to look for a variety of small tenants rather than just a few big ones, which means they are splitting up previously big offices into smaller spaces for small businesses. This means the best deals are for small spaces, so keep an eye on that market and take advantage of investigating and comparing several options.

#2 Use your negotiating power

Never accept the listing price on a lease. Because landlords are especially hoping for higher rental payments in a tough economy, it pays to be on your guard for too-high prices. While you might not be able to get the rent itself lowered, you might be able to negotiation for concessions, such as an allowance for improvements or a period of free rent. This means the landlord doesn’t have to back down on the rates they are asking, but you can still get more value for what you end up paying.

Other things to negotiate for include a cap on annual increases (to protect yourself from inflation and rising rates), expansion options, management fees, and even bonus items like parking or snow-clearing services.

#3 Be picky about the lease term

While landlords generally tend to favor longer leases, in a tenants’ market you are much more likely to get the length you want, so don’t be afraid to ask. On the one hand, this could mean that if you are a startup business you have the flexibility of signing a short lease so that you are not stuck in the unfortunate event that your business fails or the fortunate event that you outgrow a space. On the other hand, if you foresee a stable future for your business, you have the opportunity to take advantage of long term cheap rent with a longer lease.

#4 Do your research on office spaces for rent in Overland Park, KS

One element of the research you should do is learning about your market. The best way to do this is to see a lot of different spaces so that you know what rates and amenities are out there and you can make educated comparative analyses – keeping track of details on spreadsheets is a good way to do this.

Another aspect of research is looking into the landlord of a property. Creditworthiness of landlords could be questionable in a rough economy, so it is important to know where your business owner stands. Are they in over their head with loans? Debt? You might find out a little more by running a credit check, as well as gathering some information from current tenants in the building.

Part of doing good research might also be working with a broker. In a tough economy, often landlord are willing to make a lot of concessions, and an inexperienced tenant might not even know to ask about certain things, like escalator clauses, more favorable termination terms, or mitigating personal guarantees. A broker can be in your corner and make sure that you don’t get taken advantage of.

#5 Be prepared for security deposits

Unfortunately, while a lot of aspects of leasing are favorable for tenants during an economic downturn, slack on the security deposit is not one of them. Landlords tend to be even more concerned about this because of the high level of risk. Not only are you concerned about your landlord’s credit trustworthiness, but they are extra concerned about how much of a risk you are. Be prepared to pay as much as 10% of your total lease as a security deposit, as well as submit a letter of credit or even offer a personal guarantee. This is especially important to landlords who make a lot of concessions, such as improvements or repairs to a space, because they don’t want to sink that money into a space only to get it back in just a few months.

Economic downturns are rough on small businesses, but for business owners who can read the market, they might just have long-term benefits in terms of cheap commercial real estate.

If your business is looking into commercial property in Overland Park, KS, give us a call at 913-685-4100 to learn more about what is available in our office park in Overland Park, KS.

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Your Office Space for Rent in Overland Park: Organizing for Better Productivity

Whether you are moving into a new office space for rent in Overland Park and need to make that final push past the move-in clutter or your current office just needs a good spring cleaning, here are a few tips for getting your office space in peak productivity mode, as suggested in the article “How to Organize Your Office for Maximum Productivity”:

Step 1: Deep Clean Your Kansas Office Space For Rent

The first step to getting organized is doing a serious purge. By the end of this purge, you want your office to be totally clutter-free, which could take anywhere from an hour to a day depending on the size and clutter condition of your office.

Step 2: Think Zones

There are a couple of key areas you want to set up in your office to keep yourself clean and organized:

  • Computer Workspace – This is where most people are in high productivity mode – your typical desktop space. Get cords organized and think about treating yourself to a more comfortable setup, such as an ergonomic keyboard.
  • Non-Computer Workspace – This is the space for anything but computer work – signing documents, working on an iPad, reading papers. It could be at the same desk, or you could designate a separate area for this. Separating computer and non-computer work areas can help keep things clean and help you mentally organize the different kinds of work you need to do each day – nothing is less productive than eyeballing your computer screen while simultaneously trying to focus on a printed report.
  • Catch-All Space – This is a great way to catch and sort incoming junk before it becomes scattered throughout the office. Some of the things this can filter, are important documents, trash, and things you take home (i.e. jackets and umbrellas). To that end, create your catch-all zone near a door or a highly trafficked place. Stock the area with shelves, hooks, or boxes for important items that you need regular access too, trays or files for documents, and a trash can.

Step 3: Find a Place for Physical Objects

Try not to let your desktop get too cluttered with the objects we all tend to accumulate at work, from cute knickknacks to basic things like wallets or headphones. In order to stop these items from slowly but surely encroaching on your workspace, make sure that each object has an accessible place in a drawer or a desktop organizer.

Step 4: Keep Purging

It’s a simple trick: buy a bigger trashcan or recycling bin. Overflowing recycling bins mean that you are more likely to keep that stack of papers you don’t know what to do with on your desk for another week, so give yourself a nudge to just get rid of them with a roomier – and more noticeable – trash or recycling bin.

One of the keys to making your organized, productive office last is tailoring it to your productivity style. Decide what kind of ideal office space for lease in Overland Park, KS you want and what kind of systems you are most likely to stick with, then implement them ASAP!

If your business wants to rent office space in overland Park, give us a call at 913-685-4100 to find out more about our office spaces for rent in Overland Park, KS.

 

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Kansas City Office Space for Rent: Setting Up Your First Office Space

Finding and moving into your business’s first Kansas City office space for rent is a milestone worth celebrating. As a business owner, you are probably simultaneously thrilled with your growth and a bit intimidated by the unfamiliar process ahead. Here are a few tips to guide you through finding and setting up that first office space, as suggested in the article “6 Things to Consider Before Opening Your First Office”:

#1 Budgeting for your commercial property in Overland Park, KS

The first step to opening an office space is determining your budget, as this will be one of the most costly aspects of starting a business. Create a spreadsheet and include all of the different costs associated with opening an office space, from security deposit to the kinds of fees you will have to pay. Look for places where you can cut back on costs, for example, renting furniture.

#3 Size and location

When you start your search for an office space, two of the most important things to consider are size and location. Calculate exactly how much square footage you will need by envisioning how much space you want per employee, plus what kind of shared spaces you want (i.e. meeting rooms and break rooms).

Location can also make or break a new business. Consider the demographics of the area, the other businesses a location is near, the distance from your current clients, as well as little things like signage possibilities.

For a new business trying to find an office space for the first time, working with a commercial real estate broker can be really helpful. Brokers will know the area and the market, so if you can give them your cost, size, and location parameters, they can help you focus on spaces that meet all of those requirements.

#2 Office equipment for an office space for lease in Overland Park, KS

Buying office equipment can be one of the biggest items in your budget, so make sure you plan to get only what you need, and consider whether renting or buying would be better for your business.

Here are a few of the essentials to include on your list:

  • Computers. Businesses today need technology to thrive, so make sure you have the right computers and systems for your business. Look into systems for backing up data, for example online ones like Google Drive or Dropbox, which might be cheaper and easier than having on-site backup servers.
  • Internet. Computers these days are not much good without networks connecting them. Definitely make sure you have basic internet service, and decide whether you need to set up a network for within your business.
  • Multifunction Coper/Printer. Find one machine to do it all: copying, printing, faxing, scanning, etc.
  • Supplies. General office supplies like paper, pens, etc. might not seem like big budget item, but these things can add up. Plan for exactly what you need to function efficiently.

Beyond these staples, you should also look into mailing equipment or postage software to streamline your mailing process, as well as a shredder to keep any sensitive information from leaking out of your business.

If your business is interested in commercial office space for rent in Overland Park, KS, give us a call at 913-685-4100 to find out more about our office spaces for rent in Overland Park, KS.

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Office Spaces for Rent in Overland Park, KS: Doing More With Less

Worried that your business cannot afford enough office space for rent in Overland Park, or that you will quickly outgrow your space? This might not be as big of a problem as you think. Recently, a lot of businesses have been embracing a “less is more” approach to office space, and finding that a few key shifts in thinking about how to plan and run an office space can make a world of difference in how much space you actually need per employee. Below are some interesting new developments in doing more with less office space, as described in the articles “Rethinking Office Space” and “Smaller Offices, Higher Productivity.”

Small But Productive Commercial Real Estate in Overland Park

Businesses have started to think in terms of “smart offices” in order to both reduce their overhead and boost productivity. One real estate agency found that in their own office space they were able to reduce the number of square footage per agent from 282 SF to 39 SF without sacrificing efficiency. A big part of making this happen was rethinking the way the company designed their office space and taking into account new trends in the ways that employees work.

Flexible Office Space is Key

A lot of companies have been jumping on board with redesigning offices to be more flexible, and this can be a huge space saver among other benefits. Instead of giving each employee their own designated space, businesses are starting to leave open a lot of unassigned space for employees to use in various ways, as well as designated areas for quiet work, or even a few private offices that people can use as needed. Some companies are even changing their terminology to reflect these changes in use, for instance, calling conference rooms “client collaboration centers” or the work room “the production room.”

Creating flexible workspaces has been the result of other recent trends in business, such as the interest in promoting collaboration. Businesses are tearing down the walls of cubicles and encouraging employees to work together. These moves towards collaboration tend to be more successful with the aid of coaching and other sources of inspiration. Employees are encouraged to see these redesigned office spaces as opportunities for growth and embrace the mindset that the business is not limited by how much square footage it has.

Technology and Changing Work Habits in Office Parks in KS

Another big piece in being able to do more with less space is the effect technology has had on modern work habits. Because employees can use laptops, smart phones, etc. to be more mobile, they do not need to be at a desk all day, and offices can be more dynamic. Because businesses don’t have to waste money on as much space per employee, they can channel resources into other ways to grow.

Why You Still Need a Physical Space

Although businesses can get by with smaller spaces, having an actual office space is still an invaluable resource. Businesses need to have a professional space in which to meet with clients; a meeting at a coffee shop or fast food place will not always do, even in today’s mobile world.

In addition, having an actual location is a morale booster. Owners can see their employees at work and witness their successes, and employees can feed off of each other’s creativity and energy. Working on the go or at home can be a great break from the office, but there is no substitute for good old-fashioned teamwork and some human contact.

If you want to move your small and growing business into a more professional office space, a small, affordable office suite might not be such a scary leap. A lot of businesses worry that they will be trapped in a lease as their business grows, but there are plenty of examples of businesses who have adapted to smaller spaces, finding creative ways to thrive and freeing up financial resources for more important things.

If your business is looking at small office spaces for rent Overland Park, KS, give one of our commercial real estate brokers a call at 913-685-4100 to learn more about our available Kansas office space for rent!

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Rent Office Space in Overland Park: How to Take Advantage of a Renter’s Market

The commercial real estate world is shifting, and landlords no longer control the game. Recently, businesses have been gaining a huge upper hand in acquiring Kansas office space for rent for great rates. Below are some negotiating tips for taking advantage of this trend and securing an affordable space for your business, as described in the article “How to Get a Good Deal on a Lease”:

Concessions in Your Office Space Lease in Overland Park

Because it is a renter’s market, don’t be afraid to be a bit bold in asking for concessions, including periods of free rent. This is especially true if your business is willing to take a bit of a risk and agree to a longer lease term. Conventional wisdom says that shorter term leases are better for new businesses, but these days landlords are so interested in getting long term tenants that they are willing to agree to a lot more. Since it might take a landlord as much as a year to find a new tenant for a space, they have a vested interest in offering businesses sweet deals to entice them into longer terms.

Create an Exit Plan in Your Lease

The lease a landlord gives you will be heavily in their favor, but that does not mean it is the agreement you have to end up with. Negotiate for clauses to create a little more security for you, and be sure to prioritize your needs. Think about what your deal-breakers are, and focus on pushing for those things before trying to push a long list of changes. Here are a few suggestions for ways to protect yourself in a lease:

  • Guaranteed Selling Points – Sometimes landlords advertise specific selling points, like high foot traffic or a certain occupancy rate, to attract tenants. Try to get these guarantees in writing and ask for concessions if the landlord does not uphold them.
  • Sublease – This is a common way tenants can protect themselves in the event that they want to leave a space or downsize before their lease is up. A subleasing clause allows a tenant to rent out some or all of their space to another, similar business.
  • Personal guarantee release or ‘Good-guy” clause – Most landlords will ask for some sort of personal guarantee, but there are clauses can mitigate the potential damage done if your business has to leave. In a personal guarantee release, the landlord lifts the guarantee obligations after a specified period of time, maybe 2-3 years into the lease. A “Good-guy” clause replaces the guarantee and says that a tenant who defaults on a lease is only responsible for the rent they owe before they leave the space, instead of until the end of the entire lease term. This is fairly uncommon outside of New York, but worth asking for.
  • Exclusivity – This clause protects businesses from a direct competitor moving into the property.

Beware of Hidden Costs For Commercial Property For Lease in Overland Park, KS

Leases come in different forms: gross leases and net leases. Gross leases generally include everything – taxes, maintenance, utilities, etc. On the other hand, net leases involve billing separately for taxes maintenance, insurance, etc., and these things are prorated based on how much space a tenant occupies. Regardless of which kind of lease you enter into, make sure you know exactly what expenses you are paying for, particularly when it comes to common area maintenance. These expenses will probably increase over your tenancy, but you can negotiate to ensure that prices won’t go up within the first year.

Another hidden leasing cost to be aware of is repairs and maintenance. Some landlords want tenants to pay for any repairs or updates to things other than the exterior walls, the roof, or parking lot. This means that the age of a building could really affect how much you end up paying for maintenance and repairs. Have the HVAC systems, electrical equipment, and plumbing inspected before you sign the lease, and bring up any warning signs in your negotiations.

Find Trustworthy Commercial Real Estate Brokers

Be careful about which brokers you trust. Remember that often landlords are paying a broker’s commission, so the broker might be biased in negotiations. Trust your real estate lawyer, and ask them for recommendations of good brokers, as well as have them double check details of your lease.You also want to make sure that the broker you work with has experience with the particular type of commercial real estate you are looking for.

That said, a good broker is essential to negotiating a good deal, since brokers will know the market and what concessions landlords are generally willing to give. Be proactive with your broker and don’t settle for a simple, standard lease.

This is a great time to take advantage of a renter’s market, but it is important to be a savvy negotiator in order to seek out the best concessions and avoid all the pitfalls of a commercial real estate lease!

If your business would like to rent office space in Overland Park, give us a call at 913-685-4100 to arrange a tour of a commercial office space for rent in Overland Park, KS.

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Renting Commercial Property in Overland Park, KS: How to Become a Successful Negotiator

Figuring out how to research, compare, and rent office space is something of a skill that you can acquire through practice. Negotiations are a major aspects of any renting, selling, or buying situation, and if you are looking to relocate to an office park in Kansas, read through these tips and tricks to make your search for commercial property in Overland Park, Kansas a quick and easy process, as suggested in the articles “Tips for Negotiating a Better Office Lease” and “Rules to Boost Your Negotiating Skills”:

Research. Prepare. Plan.

Try finding information about everything you need, including what the landlord is like, wo is paying your broker’s commission, and who your new office neighbors will be. Gather as much information as you can about other parties who are interested, tax records and past listings of the space.

Start Early Finding Commercial Real Estate in Overland Park, KS

Ideally you want to allow plenty of time to search for your new office space. Make sure that you have enough time to do you homework; that means going over leases, looking at other buildings, and negotiating the terms with your landlord. You should give yourself at least nine to twelve months before your lease term expires.

Ask for Better Provisions and Concessions in Your Lease

Another way to get the best deal when negotiating is to call for a cap on operating costs as well to seek out free perks from your landlord. It’s a good idea to limit an increase in expenses expenses such as cleaning and technical support to 5-10% annually. You might also try to negotiate for storage, extra parking and signage. Don’t be afraid to ask for perks and/or discounts.

Think Big Picture

Always remain objective when negotiating. Do not talk about the terms and conditions of one potential lease with a different landlord if possible. Try to only say that they are interested in renting the property and that you are exploring some other options. This usually helps avoid misunderstandings while still creating competition.

Prepare for the Worst Case Scenario

Understand the best and worst case scenarios when going over different options in a else. Hope that in most cases that the experience will be somewhere in the middle, but you want to protect yourself. Prepare with confidence and this will help create a much calmer negotiation process. Understanding that negotiations don’t need to be a tense, stressed and uncooperative situation helps with understanding your position and possible leverage and how to negotiate well.

Be Respectful During Negotiations and Tenancy

When people realize that you are a person who keeps your word, you have an added edge in your negotiations. Follow through with your promises, show up on time, do what you say you will, and call when you say you will. If you do this, it could set you apart form others in the market place. However, it is also a good idea to avoid personal guarantees or lease provisions that you can’t actually keep. Nothing is worst than being known as someone who can’t keep their promises.

There’s really nothing like negotiating. Practice makes perfect and using all these skills doesn’t make a great negotiator overnight. Keep trying and make sure that you know what you want, and when it is okay to compromise.

If you are interested in office spaces for rent in Overland Park, KS, give one of our real estate agents a call at 913-685-4100 and we can set up a tour of one of our Kansas office spaces for rent!

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