office space for lease kansas city

Office Space For Lease in Kansas City: 7 Common Leasing Issues

Signing a lease is a big step for any small or new business. If you are looking for a commercial office space for rent in Overland Park KS, here are seven common problems that you might come across when you are going over your lease, as well as a few solutions for these issues, as outlined in “12 issues to consider when leasing a commercial office space”:

The Lease Term: The term of a lease simply refers to how long it will last. When negotiating your lease, it is definitely a good idea to understand exactly how long your lease lasts before signing it. Few things would be worst than having to move out of your space earlier than you thought, so make sure your lease term is exactly the length you would like. Most landlords are flexible in negotiating leases with longer lease terms, since this means they don’t have to find a new tenant soon, so if you want a longer lease term you might also use this as leverage for other provisions you want.

Subleases/Transfers: It’s definitely important to think about what will happen to your space over the years of the leasing term. If you think that you might need to move or your business might change within the next two or three years, it might be a good idea to ask questions about subleases and transfers. A sublease is when you allow another company or individual to rent out your space for the remainder of the lease term. Transfers are commonly referred to as assignments, and allow the tenant to transfer the terms of the lease to a third party. If the lease does allow a third party in either a sublease or a transfer, the original lessee must remember that they are liable for any damages this other party might cause during the remainder of the lease.

Rent: A decision-driving factor that most people are concerned with at the beginning of their search is the rent of the space. It’s easy to get sucked into a situation where the rent starts off lower and ideal for you but then it escalates. So it’s important to pay close attention to the escalation clauses in your lease and to negotiate for a fixed rent for the entire term. Rent may fluctuate because of market conditions and perhaps even general the general financial status of the area or landlord. If you do have to accept escalations in rent, make sure you understand how and when the escalation will be calculated.

Common Spaces: When thinking about signing your lease for your new commercial space you should physically visit and evaluate the exact space to find out what is really included in the rent. This means that you should discuss hallways, restrooms, elevators, lobbies and other common areas with the landlord. Understand where your office stops and another begins and exatly what square footage was quoted in your rental cost by the landlord. Having a clear understanding of the space will help you really determine whether the price is fair.

Disputes and Resolutions: Companies that take legal action regarding their lease can accumulate costs relatively quickly if the dispute gets out of control. Some leases might include some sort of clause about this situation and how to deal with disputes. So it is a good idea, especially if you are a smaller and newer company, to look into alternatives to traditional court proceedings like mediation and arbitration. In these situations, neutral third parties could help facilitate discussions and solutions to disputes with a landlord.

Security deposits: Before you sign your lease, find out what can and cannot be deducted from the security deposit you pay before moving in. The most common deduction from the security deposit is for general cleaning and large damages to the space. But remember there are laws that specifically prohibit actions relating to security deposits, so make sure you understand the expectations outlined in the lease.

Repairs/Termination: Trying to negotiate a right to an early termination within your lease benefits you because you will avoid relying on a court to determine damages for the landlord and you will be in control of repairs. Before signing your lease, you should make sure you understand the conditions in which you can terminate a lease prior to any renewal that might be automatic. Also, before ending the lease, make sure that you know who is responsible for what kinds of repairs. This will help with both ending the lease properly and making sure you get all of your security deposit back,

So when going over your lease, make sure that you make a checklist with this information and it may save you some money in the long run! These common problems can be avoided with the right precautions and awareness.

If you are interested in commercial real estate in Kansas City, give one of our commercial real estate agents in Kansas City a call at 913-685-4100 and set up a tour with the commercial property management in Overland Park, KS.

18 Common Sections in a Lease for Commercial Office Space for Rent in Overland Park, KS

As you get closer to the end of your search for office space for lease in Kansas City, you will come to the negotiation process of finalizing a lease. Before really entering into this phase, it is wise to familiarize yourself with some of the terms you should expect to see in a lease. Below are explanations of some of these sections in a bit of detail, as described in the article “Commercial Lease Documents Explained: Typical Sections in a Commercial Real Estate Lease”:

Deposit: This section will detail any circumstances in which the security deposit payment may be forfeited or returned to the tenant.

Use/Restrictions: This describes what can and cannot be done on the premises of the property; for example, signs and sub-leases may be discussed in this section.

Term: This section describes when the lease begins, ends and or can be renegotiated. This is important, because even something as simple as your exact start date can have a big impact on things like finding insurance coverage for your business while in the space.

Parties: This is where the lease will state who the tenant and landlord is and their official names.

Taxes and Insurance: This section will include a requirement for the tenant to have insurance of some sort on the property to protect both the landlord and the tenant. It is also common in this section to discuss the division of property tax.

Parking: This should discuss details on handicapped parking, employee and customer parking, as well as the availability of space for parking.

Maintenance: This section discusses who is responsible for what in terms of minor or major damages to the space. Most tenants will be responsible for minor damages, while landlords will be responsible for failure of equipment and larger problems.

Hold Over: This term describes the consequences in the event that the tenant does not leave at the end of the leasing term.

Premises: This section describes what exactly you are paying rent for and how the space is divided.

Utilities: This section will describe utility costs, specifically how they are metered and distributed among the tenants. It may also speculate if the tenant needs to pay the landlord utilities and what will happen if they are not paid on time.

Subordination, Non-disturbance, and Attornment: This section will protect the tenant from foreclosure from the landlord. It will most likely describe what will happen if the bank or a new landlord takes over.

Rent: This section will discuss how the rent is distributed and calculated, as well as the common area maintenance and other associated costs that might be included in the rent.

Estoppel: This section touches on what will happen if there is any sort of change landlord’s position, and to verify if the tenant is holding up their leasing responsibilities.

Destruction/Condemnation: This clause will discuss what will happen in the event of the destruction or condemnation of the property.

Assignment and Subletting: If the landlord permits subleasing, this part of the lease will discuss the steps a tenant can take in the event that they want to sublease part of their space.

Options: This section will discuss the possibility of buying property or renting additional space within the same building.

Defaults and Remedies: Describes what the consequences are if one party defaults on the lease agreement, as well as what remedies are possible for the other party.

Once you have gone over your lease it might be a good idea to review the lease with an attorney. This can help you better understand more specific terms and conditions within the contract.

So if you are looking for Kansas Office Space For Rent, give one of our commercial real estate agents in Kansas City a call at 913-685-4100 to set up a tour of one of our spaces or learn more about our commercial property management in Overland Park KS!

Office Space for Lease in Kansas City: Understanding and Negotiating CAM Fees

No matter what size business you are or how much commercial real estate in Kansas City you are looking to rent, it is always worthwhile to ask for a better deal before signing your commercial lease. One area that can be confusing for businesses leasing a space is CAM fees, although this is an area that deserves attention in negotiations, as these make up a notable portion of the expenses you will be responsible for during your lease term. Here is some information on what CAM fees are and how to deal with them, as outlined in the article “Tips on How to Negotiate CAM Fees in Commercial Leases”:

Understanding CAM Fees – The most basic step is to understand what these fees are and what they cover. CAM fees typically cover the maintenance and repair of common areas that affect all tenants, including elevators, stairways, lobbies, restrooms and hallways, plus sometimes even the parking lot, sidewalks and landscaping of the property. Make sure your business’s CFO understands how to factor these fees into your budget.
Administrative CAM Fees – If you see this in your lease, these fees are something you definitely have grounds to reject. These are the fees that are related to operational or management expenses and should usually be taken care of by the landlord.
Beware of CAM Fees for the Exterior – Another aspect of CAM fees that you should push back against is exterior building maintenance. In theory, the landlord is making money from these buildings through the rent that you pay, so maintenance of this aspect of the property should be paid for by the landlord through the rent you pay.
Review the Bills – If your landlord won’t budge on your refusal or negotiation of certain CAM fees, you can ask to see proof of these expenses. Write it into your lease that you have permission to review these bills to make sure the expenses are being calculated correctly and appear reasonable.
Cap the Increases – Make sure that you negotiate for a cap to how much CAM fees can be raised annually. This could either be a percentage or a stipulated maximum amount. Make sure that you address this specifically, separate from other rent increase clauses.

In order to be prepared to negotiate the best lease possible for your business, it is important to know what you are dealing with in a commercial real estate lease. CAM fees are a major expense you will be responsible for beyond your regular rental payments, so it is important to understand how these work and how to make sure that your portion of these expenses is fair and reasonable. Do the due diligence on how to deal with CAM fees for office space for lease in Kansas City and save your business some money in the long run!

If your business is looking for commercial office 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 the spaces our commercial property management in Overland Park, KS, has available!

Commercial Office Space for Rent in Overland Park, KS: Finding and Keeping Your Ideal Location

An office space lease is a serious commitment for any business. On top of the cost you pay per month, you have to be prepared to pay for other expenses, such as insurance, maintenance and taxes, as well possibly putting up a personal guarantee. Since this is such a big financial decision, it is important to approach leasing as a well-informed negotiator. Remember that there is no standard lease, so don’t be discouraged if the initial terms the landlord offers do not work for you—there is always room to negotiate. Here are a few issues to consider when looking at the locations of office spaces for rent in Overland Park, KS, as described in the article “Office lease negotiating: Part 1—location & relocation”:

Location Considerations

When selecting an office space location for any business, there are three crucial things to remember: visibility, accessibility, and desirability. In other words, you need to find a location that your clients can easily find and want to go to. Here you more specific considerations to look into when evaluating the location of an office space for lease in Kansas City:

Visibility Changes – While you might start off with a space that has great visibility, it is important to make sure upfront that your signage and space remain visible. For example, what happens if partway through your lease a tree blocks your sign, or your sign is no longer lit? These problems aren’t uncommon and can definitely be addressed in your lease by stipulating the landlords maintenance obligations—but this requires the foresight to anticipate these issues.
Referring Potential – In addition to finding a place that is easily accessible to your clients, you might also want a place where nearby businesses can provide a reference to your business. If all other things between two office space options are equal, it could certainly tip the scales if one of the places is near a business that could send some clients your way.
Exclusivity Clause – Another issue that should be addressed in lease negotiations regarding location is an exclusivity clause. This prevents the landlord from leasing spaces in the same complex to direct competitors of your business. You might not be thinking about competitors when you first move into a space, but it is important to plan for the possibility of one seeking a nearby office.
Logistics of Access – When assessing how easy is a place is to access, it is important to think out the logistics of how your clients will reach you. Is there nearby highway access? What about public transportation stops? If you live in a bike friendly city, will people be able to easily bike to your office?
Parking – One final thing to consider is the parking situation at your office space. Make sure you know if you will have enough parking for both employees and clients and how close parking is to the building. You should also ask about parking lot security, particularly if you anticipate employees staying at the office after dark.

Remember that a lot of these concerns are not things that a landlord will address right off the bat. It is important to raise these questions yourself and negotiate for any necessary clauses or provisions in your lease to address them.

The Relocation Clause

A lot of leases might include a clause that gives the landlord the right to relocate you at some point during your lease term. In a lot of cases, you might not be able to eliminate this clause entirely, but there are a few things you can negotiate for to limit the power of this possibility:

The amount of notice required before relocation.
The places to where you can be relocated.
The window of time in which a landlord can choose to relocate you.
The costs of relocation and who is responsible for them.
The right to end your lease if you do not want to relocate.

It is important to bear in mind while looking for an office space for lease Olathe, KS, that the offered lease is not a document set in stone. There is a lot of room for negotiating to see if you can satisfy all of your concerns. The best way to make sure that your issues are addressed, particularly when it comes to location and relocation, is to make sure you educate yourself ahead of time on what is important and keep an eye on your priorities throughout negotiations.

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

10 Commercial Real Estate in Kansas City Terms You Should Know

10 Commercial Real Estate in Kansas City Terms You Should Know

When you are looking for commercial office space for lease in Kansas City, the best place to start is to familiarize yourself with leasing terminology. Here are a few terms to become acquainted with before going in search of your perfect office space, as outlined in the article “Typical Leasing Terminology”:

Lessee. The individual or business who leases the property, also known as the tenant.
Lessor. The owner of the property, referred to as the landlord.
Rent Rate. The rent rate is listed for a space on a per square foot basis. Be sure to clarify whether the listed rate refers to rentable or usable square footage.
Gross Rental. In a gross rental lease, the tenant’s rental payments cover all services, such as insurance, property taxes, and often some maintenance services. This type of lease is different than a net lease, which charges for each of these expenses separately.
Option to Renew. This is a clause that a tenant can negotiate into the original lease, which allows the tenant to renew the lease before it expires at a pre-determined rental rate. This option is especially useful for tenants who are not sure where they will be in a few years, as it gives them the option to extend their stay or move on if they have outgrown the space.
Rent Free Period. Many landlords offer this as an incentive to tenants, which can go into effect at the beginning of the lease or be spread out through the course of the lease, depending on the negotiated terms.
Date of Possession. This is the date agreed upon in the lease when the tenant officially begins their occupation of the premises. Starting from this date, the tenant assumes liability for anything that might happen in the space.
Property Maintenance. The tenant is typically responsible for maintenance costs both inside their space and in common areas of the building. However, the landlord or property owner generally is responsible for the maintenance of the outside of the building.
Assignment. This clause allows a tenant to pass their lease on to another tenant for the rest of the lease term, usually because the original tenant needs to leave the space due to financial difficulties. The choice of a new tenant is subject to the landlord’s consent. Potential lessee’s should consider trying to negotiate for this clause to be included in their lease to protect themselves in the event of financial difficulties.
Novation. In this situation, an entirely new tenant moves into the premises before the end of the original lease and draws up a new lease directly with the landlord.

Before you start looking for commercial real estate in Kansas City, take the time to familiarize yourself with the vocabulary of the commercial real estate market. This will help make the process of finding a Kansas City office space for rent feel much more in your control.

If you are looking for commercial office 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 find out more about our available spaces and commercial property management in Overland Park, KS!