office building Overland Park

Leasing Office Equipment for Your Office Building in Overland Park Part II

Buying office equipment can be a huge expense for a new company. Renting is one other long-term option, but leasing offers several benefits as well. Here are a few of the advantages of choosing to lease your office space equipment:

Leasing can help your business afford more. You might not be able to afford to buy top of the line office equipment for your office space, but you might be able to afford to lease it. Having better furniture and office equipment in your space can boost your employees’ morale and productivity and can create a more professional image for your company.
Leasing could be beneficial for your balance sheet. You might be able to leave some leased assets and related obligations off of your balance sheet. This could potentially improve financial indicators such as your company’s earnings-to-fixed-assets ratio or debt-to-equity ratio. However, remember that accounting rules do require that under certain types of leases you have to report assets leased on your balance sheet.

If you choose to lease rather than purchase equipment, keep your lease short-term—two years is a good length. Negotiating a “modern equipment substitution clause” will let you exchange or update your office equipment so that you can keep up with the changing technology. You will also want to include a cancellation clause that allows you to cancel the lease for a fee, and be sure to note the cost of a cancellation penalty.

Looking for office rental space in Kansas City. Give us a call at 913-685-4100 to find out more about Southcreek’s affordable office space in Kansas City!

Leasing Office Equipment for Your Office Building in Overland Park

If you are trying to figure out how to most efficiently furnish your office space with the equipment your business needs, here is some information about leasing equipment that might be helpful:

Leasing helps your business’s cash flow. The main benefit of leasing is that it frees up cash for your business. Leases for equipment typically do not require down payments, though some might need a refundable security deposit. On the other hand, loans for buying equipment usually need down payments that could be 25% or more.
It is easier to fund leases than purchases. Banks usually will not give capital equipment loans without seeing 2-3 years worth of financial records—something that most new companies do not have. However, leasing companies typically only want to see 6 months – 1 year of credit history in order to approve an office equipment or furniture lease.
Leasing makes it easier to keep up with technology. Leasing is an especially good option if your business needs to stay on top of cutting-edge technology such as the newest communication devices, computers, or other office equipment. Short-term leases are more cost-efficient than purchasing new equipment every few years. Sometimes office equipment leases have annual computer upgrades built into the lease, which saves you from the difficult decision of whether or not you can afford to upgrade.

Check back for more information about how leasing might be a good option for your business!

Are you or any of your peers looking for an office rental space in Overland Park? Give a commercial real estate broker in Overland Park a call at 913-685-4100 to get more information about some of our available spaces!

Executive Office Suites Kansas City

You have decided that your business is ready to relocate to new executive suites in Kansas City and you are ready to begin some research. What to consider? Here are a few factors to think about as you are looking for a new Kansas City office space for your business:

Anticipating Growth. Do you think your business might grow dramatically in the near future? If so, looking into a short term lease or an option to rent additional space might be a good way to accommodate that potential growth.
Common Area Expenses. In many leases you will be required to pay to maintain common areas of the building or floor, including expenses like repairs or garbage services. Make sure you know exactly what you are responsible for and how much you will be paying.
Type of Rent. There are several different types of rent, some fixed, some dependant on a percentage of the profit your business makes, so consider what would be best for your business. You might also be subject to rental increases, so a little research into what is a normal amount and frequency for these increases in your area might give you a good idea of what to reasonably expect.

These are just a few considerations to bear in mind as you weigh your leasing options. Being savvy about types of rent and expenses will make it easier for you to know exactly what you are getting yourself into when you sign a lease.

If you are looking to rent in an office building in Overland Park , give Southcreek Office Park a call at 913-685-4100 to learn more about our available rental spaces!

Before you get ready to pick your perfect office building in Overland Park, think about brushing up on your leasing-lingo. Most leases are slightly different, so knowing how to negotiate a lease could help your business save money and get exactly what you are looking for. Here are some suggestions for what to be aware of when figuring out a lease:

Improvements made by the tenant. You might want to make some improvements or changes to your new office space. Be sure to be aware of what your lease says about this. Form leases usually state that a tenant must have the landlord’s consent to make any alterations, so if you are thinking about making any improvements, you might want to make sure that your lease includes a clause that allows you to do so with your landlord’s consent and that the consent will not be delayed or withheld unreasonably. You should also be on the lookout for any clauses that say that a space must be returned in its original condition at the end of the lease.
Common area maintenance and operating costs. Be aware of any operating costs that your landlord is holding you responsible for. If they are separate charges, you might try to negotiate a cap on the amount or a fixed fee.
Option to renew. If you are thinking about renewing, see if you can negotiate to renew your rent at a set predetermined price instead of based on “fair market” price at the time.
Right of first offer and right of first refusal. Right of first offer means that your landlord is obligated to present any space in the building that becomes available to your business before offering it to third parties. Right of first refusal means that your landlord has to offer you first any deals he or she is might make with third parties for a space, giving you the opportunity to preempt the third party and match that deal.

Knowing the ins and outs of a lease could save your business money in the long run and ensure that you are getting exactly what you want from your office space lease in Overland Park.

If you would like inquire about lease negotiations for Overland Park office space through Southcreek, give us a call at 913-685-4100!