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!


Office Space for Lease in Kansas City: Should I Stay or Should I Go?

Southcreek Office Park Building III Office Space Overland ParkIt’s one of the biggest decisions business owners have to make as their business grows: when is it time to move, versus when is it better to stay in a current space? Business owners make significant decisions for their business on a daily basis, but this particular decision can have huge financial ramifications, so it is important to consider it from all angles. Here are three factors to consider when thinking about whether to expand into a new office space or stay in your current lease, as described in the article “Ready to Expand”:

Cost of Commercial Real Estate in Kansas City 

Are you paying for extra space that your business does not need? Are you wanting to hire more employees, but unable to because you simply don’t have the space? Both of these are signs it might be time to downsize or upgrade. A move will be expensive in the short term, but if your business is wasting money on useless space or your growth is crippled, you need to start thinking about other options.

Another cost to consider is the cost of the move itself. You will need to hire a moving company, possibly rent or buy new furniture and equipment, and deal with downtime when your employees will be unable to utilize office space. Do some research and try to get an estimate of how much it will cost your company in total to move. Then consider a) whether your company can afford that cost at this time and b) whether this short term expense is preferable to the long term expense of either overpaying or being unable to grow in your current space.

Logistics of Moving to a New Commercial Office Space for Rent in Overland Park, KS

The biggest thing to consider in all real estate is location, so before you make a move, compare the logistics of your current location to the logistics of a possible new place. Do you need to be by freeways or public transport? How far will you be moving away from or towards customers and clients if you move? Will your employees have access to parking and local amenities? If you have the option of moving into a location that will be better for employees and better for access to clients or customers, that might be worth the financial risk.

Infrastructure of an Office Space for Lease in Kansas City

Consider the infrastructure of your building versus a building you might move into. Typically when you move, it should be an upgrade in infrastructure. If you move to a new building, you can potentially have better internet, more cost-efficient energy systems, and other benefits that might actually offset some of the cost of moving.

Getting answers to these questions can seem overwhelming, but it is necessary to gather this information to do a real comparison of the costs and benefits of your current space versus a new one. Create a spreadsheet to track all of these details, and work with a good broker who knows your location. Make sure you work with a broker who is paid by the tenant and not the landlord so that they have your best interests in mind. Once you have done some thorough research, you can make an informed decision about whether it is better to stay in your current space or take the risk of moving to a new one.

To learn more about our available spaces and commercial property management in Overland Park, KS, give one of our commercial real estate agents in Kansas City a call at 913-685-4100!


Commercial Real Estate Kansas City: Analytical Leasing Dos and Don’ts

Now is a good time to look for commercial real estate in Kansas City for small businesses. Whether you are looking to upgrade, relocate, or simply expand, here are some Dos and Don’ts for how to approach this search for office space for rent in Kansas City from a careful, analytical perspective, as suggested in the article “How to Lease Commercial Real Estate: Part I”:


As you’re looking for a lease and trying to save money for your business, there are some things you should avoid. Don’t…

  • Stop looking after you have found one good space. You should find at least two or three places that you could see yourself leasing. Having options will give you both negotiating leverage and a safety net in case your dream office falls through.
  • Sign anything until you fully know and understand every detail of your lease. Play close attention to things like maintenance and repair costs, as well as insurance and taxes. You do not want to find any costly surprises after you sign your lease.
  • Get attached to any one space before negotiations. It is tempting to stretch your budget to get your ideal space, but this could be an expensive sacrifice in the long run. Wait until after you’ve negotiated terms that your business can live with.


Here are some things your business should keep in mind as you look for a space. Do…

  • Ask yourself whether your customers and clients will love this space. While you want a place that you and your employees will be comfortable in, ultimately this is about making a smart business decision with your customers/clients in mind.
  • Get a pro forma copy of the lease from the landlord ASAP. Because commercial leases are each so different, you want to see this sooner rather than later so you can start to get a picture of what you are dealing with.
  • Make a comparables analysis to compare the different potential spaces – you can do this electronically in a spreadsheet. Make sure you include the square footage, price per unit, expenses (such as CAM fees), lease term, and any other pros and cons that are important to you. This will help you make an objective decision if you reach a point where you are deciding between multiple properties.

Make sure as you are comparing sizes costs that you are comparing apples to apples (i.e. usable square footage vs. rentable square footage). This also might require a visit to the property to clarify.

When you are making this kind of decision for your business, you want to make it as fact-based as possible. Keep detailed notes on different properties and let your business sense rule your decision-making.

If you’re interested in office space for lease in Kansas City give one of our commercial real estate agents a call at 913-685-4100 to learn more about our commercial property management in Overland Park, KS.


Commercial Real Estate Kansas City: 5 Questions to Ask Before Leasing

Before you sign the dotted line on the lease for a commercial office space for rent in Overland Park, KS, make sure you ask some nit-picky questions so that you don’t run into any unpleasant surprises later on in your lease. Here are a few things to ask about, as suggested in the article “9 Things to Remember When Taking Out a Commercial Lease.”

#1 Does the rent make sense?

You always want to double check the listed rental rate for a potential office space for lease in Kansas City. Make sure you know whether it covers common areas, such as restrooms, corridors, or elevators. Try to bring an objective party in to measure the space, to check to see whether the thickness of the walls was included, for example. Also find out about any annual increases in rents.

#2 Who pays for what costs?

Make sure your lease clearly outlines who covers various property expenses, including repairs, maintenance, heating and cooling. If you share the responsibility for any costs with your landlord, make sure you understand exactly how that is divided up.

#3 Can you alter the office space for rent in Kansas City?

If you want to make changes or improvements to space, make sure that something that you cover in lease negotiations. You want to know who is responsible for paying for the improvements, and whether you have to return space to its original condition before you move out.

#4 How long is the lease?

Landlords typically prefer a long-term leases, so that they don’t have to worry about finding a new tenant every few years, but newer businesses usually try for a short-term lease with options to renew once the lease term is over. The downside of this option is that you might experience more rent increases each time you renew, But a long-term lease can be very risky if your business isn’t stable. It is also worth noting that if you do opt for a longer lease, you might have some more negotiating power with the landlord.

#5 What are your rights as a tenant?

Can you assign the lease? Can you sublease? How much notice do you have to give for terminating the lease, and what are the penalties? Make sure you know exactly will happen if your business needs to leave the space and try to negotiate to protect yourself as much as possible.

Before you enter into a lease, the most important thing is to make sure your business knows exactly what you are getting into. Don’t cut corners with researching and negotiating – it pays in the long run to get the best possible deal!

If you are looking for commercial real estate in Kansas City, give us a call at 913-685-4100 to find out more information or set up a tour of an office space for lease in Olathe, KS.


Office Space 101: Understanding Commercial Real Estate in Kansas City

Is your business new to the process of finding an office space for lease in Kansas City? This process can involve a lot of new real estate jargon and some major financial pitfalls for an unprepared lessee. But fear not, here are a few terms and tips to know as you look for commercial real estate, as suggested in the articles “What is the Difference between Usable vs. Rentable Square Feet?” and “You Don’t Need So Much Office Space”:

Commercial Real Estate in Kansas City Terminology

When you’re looking for an office space to rent, there are some basic terms you should be familiar with. Here are a few to add to your list:

  • Usable Square Footage – This is the specific part of the property your business will occupy. If you are renting a full floor, the usable square footage includes everything on that floor, except elevator shafts and stairwells, and would encompass things like janitorial closets, electrical rooms, common areas, hallways, etc. If you are only renting part of a floor, usable square footage is all office space, private restrooms, and storage. Be aware that this also factors in odd areas like columns or recessed entries.
  • Rentable Square Footage – When you are renting an office space, you will also have to pay for areas in the whole building that all tenants use, including lobbies, stairways, meeting spaces, corridors, etc. So rentable square footage includes both the usable square footage and a share of these common areas, generally pro-rated based on how much of the property a tenant occupies.
  • Common Area – This was touched on briefly in usable and rentable square footage,  but can be further broken down:
    • Building Common Area – places a tenant shares expenses for in the entire building space (typically a tenant’s share is 6-8%).
    • Floor Common Area – specific parts of a floor that are common to all tenants on that floor (typically a tenant’s share is about 8%).
  • Load Factor – This is what landlords use to calculate rentable square footage based on the amount of common area in a building. To calculate the load factor, landlords divide the total square footage of the building by the total usable square footage of the building.

These different terms and calculations are essential to understanding how much you will pay in a lease and how much space you will actually get for that rate, so go into tours of spaces ready to do a little math.

Looking for Deals in Commercial Real Estate Listings in Kansas City

Renting commercial real estate can be a huge expense for businesses, so getting a good deal on a space is always a priority. There are a few different ways to do this:

  • Find the lowest price per square foot. This is the most obvious way to get a good deal. Compare rates at different available spaces to see which is the best deal per square foot. Make sure you are aware of rates for both usable and rentable square footage so you are truly comparing apples to apples.
  • Find a smaller space. This does not necessarily mean sacrificing your goals for your space or downsizing. Finding a good deal is a hit or miss thing, but designing a small but efficient space is completely within your business’s control. Companies leasing more space than they need is a really common problem, so avoid this pitfall by taking the time to evaluate a space and think about ergonomics and subtle ways to make the space more efficient.
  • Find quality property. Another way to save money in the long run is to look for a high quality or new building. Because these kinds of buildings will require less maintenance and repairs, tenants can end up saving money in the long run.

Every business wants to find a good deal on their office space, but keep in mind that there are more ways to save than finding a good rental rate. Be creative with how you plan your office space, and start the researching and touring process well in advance of your move so that you have plenty of time to evaluate your options.

If your business interested in commercial space for rent in Overland Park, KS, give one of our commercial real estate agents in Kansas City a call at 913-685-4100 to learn more about our available spaces and even set up a tour!


Office Space for Lease Olathe, KS: Finding a Space that Works With Your Employees’ Lives

An office has always been like a second home for employees – whether a desirable one or not – but recently businesses have started consciously trying to make a commercial office space for rent in Overland Park, KS, feel more like the kind of home employees look forward to going to each day, shifting away from the sterile cubicles towards a more intentionally designed setup.

When you’re moving to a new office space for lease in Olathe, KS, and looking to attract a wide range of quality employees, think about characteristics of a space that could improve their quality of life. That’s not to say you have to go full Facebook and install a zen garden and an arcade, but here are a few easy ways you can make your office a little more convenient and welcoming, as suggested in the article “Top 5 Office Space Leasing Tips to Maximize Work-Life Integration”:

Collaborative and Flexible Spaces

Two of the main goals of redesigning the traditional office setup are increasing staff’s ability to work as a team and giving employees options for different settings for different tasks. Open spaces are a great way to furor the first goal by encouraging impromptu meetings, but this needs to be balanced out by areas designated for quiet work – meeting the second goal. Providing employees with laptops rather than desktop computers is another way to make sure they can maximize flexibility.


When you’re thinking about the location for your office space for lease in Kansas City, it’s important to think about how convenient a space is for your employees as well as your potential clients or customers. Consider the following:

  • Walkability. This is not necessarily about whether your employees can walk to work, but how pedestrian friendly the surrounding area is. Employees might not mind driving a little farther to work if they can walk to meet friends somewhere for dinner or drinks at the end of the day.
  • Public Transport. Not only is this convenient, but the Millennial generation is actually shifting towards preferring public transport, and this might factor into their choice of a company to work for.
  • Parking. Even if you have good walkability and public transport factors, it’s still important to have enough convenient parking for your staff; it’s frustrating to have to circle streets in the morning looking for a spot blocks away.


Some basic things that you could either include in your office space or try to locate yourself near are restaurants, a coffee shop, a park with a walking trail, or even a gym. If you want to go all out, consider integrating in other business services, like kiosks, dry cleaners, spas, day care – or yes, even a zen garden might be nice. If it’s easy for employees to relax, grab a bite to eat or run some errands on their breaks, they will feel much more satisfied at the office and be able to reduce some overall stress.

Employees of all ages appreciate your efforts to consider their comfort and convenience, but this attitude towards work and life balance is becoming even more important to the younger generation in the workforce. If you’re looking to bring Millennials on board at your company, these are definitely factors to think about in a space if you want to be an attractive business to work for.

Interested in a Kansas office space for rent in the heart of Overland Park with all of the amenities and services the area has to offer? Give us a call at 913-685-4100 to learn more about our available office spaces for rent in Overland Park, KS.


Kansas City Office Space for Rent: 14 Common Lease Terms

Commercial leases can be full of terms and provisions unfamiliar to the average business owner, but it is important to have some knowledge of this jargon to be able to negotiate a good deal for your lease. Here are a few of the most common lease terms to have on hand as you begin your search for commercial office space for rent in Overland Park, KS, as described in the article “Common Lease Provisions”:

  1. Assignment or Subletting – Discusses the tenant’s right to assign the space to another tenant or sublease it temporarily if they cannot afford to stay for the entire lease term or want to rent out some of the space. In an assignment situation, the tenant passes all of the lease responsibilities to the new party, but in a sublease, the original tenant is still on the hook for making sure the lease provisions are honored.
  2. Condemnation or Destruction – Outlines both parties’ rights in the event that the government takes the property through eminent domain. This clause stipulates that the landlord must rebuild if the property is destroyed, and it outlines rent reduction possibilities or the tenant’s right to terminate the lease if the property is destroyed.
  3. Competition – Prevents the landlord from leasing nearby spaces in the property to your competitors.
  4. Escalation – Common in most leases, this clause discusses annual increases in rent, either based on the landlord’s operating costs or an external index.
  5. Enforcement – Discusses the enforcement of lease terms, who is responsible for attorney fees and possibly the course of action in a dispute, i.e. mediation or arbitration.
  6. Grace Period – States specifically how much time the landlord or tenant has to comply with a lease term, for example to correct a defaulted rental payment.
  7. Insurance – Discusses who should be responsible for insurance coverage and liability.
  8. Landlord’s Solvency – Describes the rights of the tenant if the landlord is financially unable to keep ownership of the property.
  9. Option to Purchase – Gives the tenant the opportunity to buy the property when their lease is finished, and should state the timeframe in which this purchase can take place and the price.
  10. Option to Renew – Stipulates whether the tenant can renew their lease at the end of their term, and what the new term and rental rate will be.
  11. Property – This clause describes in detail the rental property: square footage, means of measuring square footage, address, suite number, city, state and zip code. This section should be gone over carefully to check for any mistakes since the lease is binding, regardless of the correctness of this information.
  12. Tenant Improvements – Discusses the tenant’s rights to improve or build out on the property, and who is responsible for the costs of those improvements.
  13. Termination – Describes the termination of the rental contract and what condition the property should be in when the tenant returns it.
  14. Use of Premises – Clearly states what the tenant can or cannot use the space for.

Remember that commercial leases for office spaces for rent Overland Park, KS, are negotiable, so you can push for more favorable terms on things like assignment or subletting, escalation clauses, grace period or the option to renew. Working with an experienced commercial real estate attorney might also be in your business’s best interests, especially if you are new to the commercial real estate market. Commercial real estate can be complicated, and you don’t want your business bound to a lease with mistakes or stuck in unfavorable terms for the next few years.

Is your business interested in office space for lease in Kansas City or office space for lease in Olathe, KS? Give one of our commercial real estate brokers a call at 913-685-4100 for more information or to set up a tour of a Kansas office space for rent.


Moving to an Office Space for Lease in Kansas City: Planning Your Perfect Office Design

Moving to an Office Space for Lease in Kansas City: Planning Your Perfect Office Design

If your business is ready to find some new commercial real estate in Kansas City, one major aspect of the move to think about is the design of your space. Finding a new office space for lease in Kansas City is a great way to start fresh with a configuration and decor that will help improve the efficiency, comfort, and image of your office space. Here are a few steps to consider as you search for and plan a new office space, as suggested in the article “Aiming to Improve Your Office Space? Consider This Before a Move or Redesign.

#1 Determine Your Needs

Before you can really begin to plan a new office space, you need to come up with some concrete facts and figures regarding your business’s needs. The most basic aspect of this is determining how much square footage you need now and potentially in the future. Look at your current space to see how efficiently you are using the space and realistically how much more you might need – don’t forget to factor in projected growth as well. Also think about ways that your office design could be restructured to make better use of space, as this could be factored into your new plans as well.

Another thing to consider is the current aesthetics of your office, particularly the ways that your design or color scheme could be adjusted to better reflect your corporate culture, promote the comfort of your employees, and impress visiting clients.

#2 Tour New Office Spaces

Commercial office space for rent in Overland Park, KS, can range from move-in ready to completely empty spaces, so think about how much work you want to put into configuring your office space to help narrow down what kind of spaces you want to look at. If you want to be really involved in the design process, something that is more raw and has plenty of open office space might be a better fit for you, but if you are looking to get into a new space sooner rather than later, you might just focus on move-in ready listings.

Once you have a rough idea of how finished you want a space to be, consider the different ways you use your office space. Are cubicles, a few private offices, and a conference room enough for you, or will you need a more diverse range of amenities? Will you need a sizable reception and waiting room area? What about a kitchen, break area, or screening room? Try to make a ranked list of what is absolutely essential to your business and what you would ideally like to have to help you narrow down options even further.

#3 Put Yourself in Control of the Process

Finally, if you find an office space and decide to tailor it to your business’s needs, it is important to stay proactively involved in the whole process to make sure you achieve your intended outcome. The first thing you can do is start to assemble a team of people to help you, selecting the best construction and design professionals for your budget based on references, their past project work, and any other background information you can find. Here are a few roles you might consider filling:

  • Company Representative – Find someone from within your own office, possibly an office manager or even CEO, to act as a liaison between your business and any external construction or design services. This person does not have to be particularly well versed in technical construction concerns; they just need to be able to communicate your business’s interests, maintain regular contact with construction companies, and make decisions as needed.
  • Architect – It is a good idea to engage the services of an architect early on and ask them to join you on tours of potential spaces. This way they can have your needs in mind and give you a more accurate assessment of what you can accomplish with a space. Once you choose a space, they can draw up designs to pass a long to a contractor.
  • Small Project Manager – If you are only interested in a small buildout, you might be able to designate someone internally to manage the daily aspects of the project. However, if you are considering something larger, it might be better to go with an outside professional.
  • Contractor – A general contractor will be in charge of the actual construction project, including managing daily construction work and setting up the services of other vendors, such as plumbers, electricians, etc. The cost of these other vendors will be built into the agreed upon price for the contractor.

In addition to assembling an expert team, make sure you regularly check in to confirm that deadlines are being met and all projects are staying within your budget.

You do not have to be an expert to smoothly execute a buildout or renovation of a new space, just make sure you consult the right people, both internally and externally, to ensure that your business’s needs are being fulfilled and you are getting the best possible services for your budget!

If your business is interested in finding an available office space with commercial property management in Overland Park, KS, give one of our commercial real estate agents in Kansas City a call at 913-685-4100!


Office Space for Lease in Kansas City: 4 Considerations for Small Business Owners

Office Space for Lease in Kansas City: 4 Considerations for Small Business Owners

There are a lot of angles to consider when renting office space for lease in Olathe, KS, and the first step in the process is knowing your own business and what risks you can afford to to take when finding your first real office space. Here are a few general tips for renting office space, as well as a few risks your business should consider taking for bigger payoff in the long run, as suggested in the article “5 Things Entrepreneurs Should Know About Real Estate”:

#1 Lease Length

Conventional wisdom says that small businesses should look for short term leases – one to two years – with option to renew, but young businesses can save quite a bit of money in the long run by signing a longer lease – for example, six years. If you’re bold enough to pursue this path, you have the benefit of a predictable major overhead cost for the foreseeable future, which can really help stabilize your finances. If you are not sure you can afford to take that risk, talk to your landlord about putting the option to sublease into your lease. Landlord’s might be more willing to allow you to have this option if you agree to sign a longer lease.

#2 Street Side

It is worth taking the time to figure out which side of the street will generate more foot traffic. Main streets in the U.S. typically have one side that has roughly twice as much foot traffic as the other, so stand outside a any properties you are considering and count passersby to figure out whether a place is on the heavier foot traffic side. Finding the right side of the street translates to greater exposure and thus much more potential customers for your business.

#3 Windows

It seems like such a small detail, but study after study shows that natural sunlight makes people happier and more productive. If you are torn between two different spaces, count the windows and go with the one that has more sunlight – your employees will be grateful and the productivity levels might be better in the long run.

#4 Incentive to Grow

Always be thinking about the growth of your business when you are looking for commercial office space for rent in Overland Park, KS. One safe way to give yourself room to grow is to check and see if there are options to expand into other spaces in the property. A riskier move is to challenge yourself to grow your business by renting more space than you need. With extra space to make useful, you will feel the pressure to fill desks and keep your business on a growth trajectory – especially since one of the major hinderances to growth for a lot of small businesses is simply not enough room to expand.

Choosing an office space for lease in Kansas City for the first time has an inherent level of risk for a small business, but it can also be the best way for a small and growing business to get the boost it needs into a more professional, competitive sphere. Consider both the little details that go into a great space, as well as the risks that you can take for greater reward down the road.

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


Commercial Real Estate in Kansas City: 6 Leasing Tips to Protect Your Business

Commercial Real Estate in Kansas City: 6 Leasing Tips to Protect Your Business

If something happens that means you have to leave your office space for lease in Kansas City early – hopefully the fortunate case of your business outgrowing the space, but also the possibility that your business is no longer able to afford the space – it is in the best interest of both you and the landlord to have an exit strategy that protects everybody. When you are negotiating a lease, you have to take the time to work out what will happen if you need to leave, and make sure the terms are clearly spelled out in the lease – it is not pleasant to think about, but you need to do more than just sign a lease hoping for the best. Here are some tips for protecting yourself in the event that you need to terminate your lease, as described in the article “Getting Out of a Commercial Lease”:

  1. Set Income Projection Goals. One possibility that would protect you is to negotiate for the right to end your lease if your business is unable to reach reasonable income projection goals by a certain date, for example one year or six months into the lease. This way, if your business is in a position where it cannot afford the space anymore, you will be able to leave without incurring that financial burden.
  2. Option to Renew. Landlords always prefer tenants to sign longer leases, while new businesses generally favor shorter term leases. But there is a happy medium – try to negotiate for a short term lease (1-2 years) with options to renew, for example two options for 1-2 more years or one option for 3 years. This way you have the opportunity to reevaluate your business’s status frequently and decide if it is worth the risk to continue in the space. Usually landlords will want you to exercise this option by a certain deadline – for example, three months before the end of the lease, and possibly they will require a small increase in rent, which could be doable for your business if you are doing well enough to extend your lease of the space.
  3. Ask the Landlord to Terminate. If you are really in a difficult situation, you could try to simply ask the landlord to allow you to leave. There is definitely no guarantee that they will agree, but if the market is good and they can quickly find a new tenant – perhaps even at a higher rental rate – they might be willing to allow the termination of your lease.
  4. Break the Lease. If worst comes to worst, you could simply leave the space and accept the penalties. In all likelihood you as the guarantor will be on the line for rental payments for a period of time, but the law does require landlords to be reasonable in mitigating this penalty, and they must be actively searching for a new tenant to fill your space. Once they find a new tenant, you are no longer obligated to pay rent.
  5. Find a Replacement Tenant. Another way to protect yourself in the event that you have to walk away is to put a clause in your lease saying that the landlord cannot unreasonably reject a new potential tenant. This means that if you need to leave you can speed the process of occupying the space along by looking for a new tenant yourself to sublease or transfer the lease to.
  6. Buy-Out. A final option would be to ask your landlord about the possibility of a buy-out. This option might be difficult to exercise if you have a lot of time left in your lease, but perhaps your landlord will be open to making a deal or keeping your security deposit in exchange for letting you leave.

Your best defense in this situation is making sure that you are protected upfront in your lease. Try to negotiate for various provisions that you can fall back on in the event that you need to unexpectedly leave.

If your business is looking for new commercial real estate in Kansas City, give one of our commercial real estate agents in Kansas City a call today at 913-685-4100 to find out more about our commercial property management in Overland Park, KS, and our available commercial office space for rent in Overland Park, KS!