4 Steps for Creating an Option to Expand in Your Office Park in Overland Park, KS

4 Steps for Creating an Option to Expand in Your Office Park in Overland Park, KS

If you are negotiating your lease for commercial property in Overland Park, KS, be sure to consider whether or not you want to negotiate for an expansion clause. An expansion clause gives you the option to expand into more space in your office park in Kansas after a certain point in your lease. If you think your business is going to grow and you are interested in having the option to expand, here are a few steps to take when negotiating your initial lease with a landlord, as suggested in the article “Things to Consider When Negotiating Expansion Rights”:

#1 Identify the Space

The first thing you want to include in your option to expand clause is a clear identification of the space you would want to expand into. Be clear whether it is in the same building or another property that is owned by the same landlord.

#2 Determine the Cost of Expansion

Obviously the ideal situation is to find a space adjacent to yours to identify as your option space to minimize costs, but with any space you choose, it is important to budget for the cost of expansion. Do you need to knock down walls or make any other structural changes? Discuss with the landlord who will shoulder these costs. Often landlords will agree to take on construction costs that will be beneficial to future tenants or raise the value of the space after you leave.

#3 Negotiate the Rental Rate

It is important to talk upfront about what the rent will be in the optioned space. Even if you don’t have a specific number, it is possible to come up with a formula for calculating the new rent. A common agreement is to either apply the current rental rate or a fair market rate based on square footage—whichever amount is lower at the time of your expansion. However, make sure that you also specify how fair market value will be determined, so that this calculation is not left up to the landlord alone. Waiting to monitor the landlord’s decision at the time of the expansion could result in a messy legal process that drags on and ends up costing you more than you planned on spending for an expansion.

$4 Set the Expansion Window

Finally, you will need to negotiate with the landlord to determine when you have the right to exercise the expansion option. Obviously for you as a tenant, the longer the timeframe, the better, but the landlord will most likely want a narrower window to avoid the possibility of space being tied up for too long, so be prepared for some give and take in these discussions.

If you want your business to have the opportunity to grow into more space in your office park in Overland Park, KS, create that option at the beginning of your lease by negotiating for an expansion clause!

Interested in Kansas office space for rent? Give us a call at 913-685-4100 to find out more about our office spaces for rent Overland Park, KS.

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5 Things to Take Note of When Touring an Office Park in Kansas

5 Things to Take Note of When Touring an Office Park in Kansas

Once you have found a potential office park in Kansas to lease for your business, a crucial first step is touring the space. Make sure you go to the tour with a checklist of things that you want to look at, both in the space and in the whole building, and then take notes on each of those things so you can compare the details of different office rental options later. Here are a few things to look for on your tour, as outlined in the article “Things to Consider When Touring Office Buildings”:

#1 Size and Layout of the Space

The first thing to look at in the actual space is if the size and the layout fit the needs of your business. It might even be worth bringing someone to officially measure the space for you so that you know you are getting the same amount of square footage as advertised in the listing. If you require a specific setup for your office, make sure the space can accommodate that, and ask about options to make some design changes to the space if necessary.

#2 Location and Client Appeal

Determining if a location is right for your business involves assessing many factors: is it convenient for your employees and clients? Does it have curb appeal? What is the surrounding neighborhood like? What other tenants lease here, and are they satisfied with their experience? Be sure to ask all of the specific questions about location beyond whether it’s a good address.

#3 Buildout Possibilities

A space might not be move-in ready exactly according to your specifications, but try to assess if it is almost there, and talk with the landlord early on about what improvements you can make to the space, as well as whether or not the landlord will assist in paying for these improvements.

#4 Parking Capacity and Security

Check to see if there is enough parking both for you and your clients. If you are in the heart of a city, is the parking lot close to the building or a few blocks away? What is the security like in the parking lot or garage, both during the day and after hours?

#5 Lighting Sufficiency 

Check to see that there is adequate lighting both in the space and outside of the building if you think employees or clients will be coming and going after dark. Also consider how important it is to your business to have natural lighting, such as windows or skylights, versus standard office lighting.

If you are starting to look at commercial property in Overland Park, KS, make sure that you go into your tours prepared to ask specific questions and record the answers. Having a detailed description of various spaces from your own firsthand observations will make it easier to compare the various office spaces for rent in Overland Park, KS that you are considering.

Looking for Kansas office space for rent? Give us a call at 913-685-4100 to learn more about our office space for rent in Overland Park and even set up a tour!

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