office space Kansas City | Southcreek

Leasing Terms to Include in a Counter Offer for Office Space in Kansas City

A counter offer requires that you provide some details about your business, but the essence of the letter is to address important lease terms, such as lease length and renewal options or property improvements. Here are some tips on addressing some of these major points in a counter offer:

Length of the Lease. Be very clear about the lease length terms you are asking for—a two-year lease with three, one-year options to renew is different than five straight years with no renewal options. Typically landlords prefer leases that are 2 years or longer, but it could not hurt to ask for a one-year lease. These often cost more and might have less renewal options, but at least you will not be locked into a space. Since there is a chance your business might outgrow the space, or might struggle and need to find a smaller space, you will want to leave yourself the option to get out of that space quickly, and remember that breaking a lease can be costly.
Condition of the Property. Be clear as to whether you want the space as is, or if you need the landlord to repair or improve it first. If you are planning on doing renovations yourself, include this in a lease, because sometimes the landlord will give you an incentive or allowance for improving the property. If you aren’t sure if this particular landlord will do this, keep things open and offer to submit more details about your plans at a later time, after you hear more about considerations a landlord might offer for renovations.
Occupancy Date. Tell the landlord when you want to take physical possession of the property, which could sometimes be a different date than the date you begin paying rent. You might even be able to negotiate a month of free rent by having your move-in date be a month before the date the lease actually begins.

Be sure that you know what you are getting yourself into with each of these terms so that you know how to address them in a counter offer!

If you are looking at commercial realty in Kansas City, give a DDI Commercial real estate broker in Kansas City a call at 913-685-4100 to learn about our available properties!

Office Space in Kansas City Equipment Leases

Given the current state of our economy, leasing office equipment might be a more sound financial option for businesses than taking out commercial loans. The benefits of leasing depend on the different types of leases. Here is a little bit about the two primary kinds of commercial equipment leases:

Capital Lease – In this type of lease, both the asset and the corresponding debt are recorded on the lessee’s balance sheet. Because of this, the lessee holds all the tax benefits, with deductions for the interest part of the lease payment and depreciation expense. When the lease term ends, the lessee can either get the equipment’s title transferred to them, or have the option to by the equipment for a minimal price (i.e. one dollar).
Operating Lease – In this kind of lease, the lessor keeps the ownership of the equipment or asset. When the term of the lease ends, the lessee can either return the piece of equipment to the lessor, or buy it at a fair market price. The lessor retains tax benefits, including depreciation of the asset and any tax credits, but these benefits may be transferred to the lessee in the form of lower lease payments.

If you decide that leasing office equipment is the best option for your business, look into these different types of leases to decide which one is a better fit!

To learn more about Kansas City office space for lease through Southcreek, give a commercial real estate broker in Kansas City a call at 913-685-4100!

Documentation to Prepare When Applying for a Loan for Office Space in Kansas City

Some lenders for commercial real estate loans specialize in funding specific types of commercial ventures, such as retail operations, warehouses, or apartment complexes, while others provide financing for a more general variety of commercial real estate ventures. However, despite the fact that there are many different types of financing and commercial real estate, most lenders are primarily concerned with the level of risk involved in giving out a loan. To assess this level of risk, they will want to see certain documentation from a business, so the best thing a business owner can do to start the loan acquisition process is to have the following paperwork in order:

Income and expense statement for the property that demonstrates a solid stream of income
Management team profiles
Financial statements on all principles involved as holders of the property
Property appraisal
Financial statements on the borrowing party
Plans for the use of the property

In addition, the borrower will also be asked to pay1-2% of the terms of the loan to show their commitment to the deal, which will be refunded once the loan is closed. Having your documentation ready and knowing what a lender is looking for in a potential loan candidate can help you secure your loan and put you one step closer to your ideal office space in Kansas!

Give Kathy Woodward at DDI Commercial a call today at 913-685-4100 to learn more about office rental in Kansas City through Southcreek Office Park!

Tips: Signing an Office Space Lease in Overland Park

Signing a lease for office space in Kansas City is an important step for your business not only because it determines the physical space in which you will be conducting business, but also because it can affect your business’s ability to grow and evolve. With that in mind, think about a few tips as you begin the lease negotiation process:

Negotiate a Lease Best Suited to Your Business
Before you even begin negotiating, brainstorm a list of terms that would be beneficial to your business. For instance, if you are opening a certain type of store in a mall or some other retail setting, you might want to stipulate that no other store like yours can rent space in that area for the duration of your lease. If you are expecting walk-in business, be sure to negotiate for terms that will let you put up any necessary signage.

Sign the Right Lease for Your Needs
The benefit of a shorter-term lease is the option to leave the location early if you are not pleased with it. While a longer-term lease offers stability and can keep increases in rent down, a longer lease ties you to a location that might be too small or unprofitable for your business down the road. Usually there are ways to get out of any kind of lease, but you do not want to go into an agreement thinking about ways to get out.

A savvy lessee could potentially save their business money and create opportunities for business growth and development!

If you would like to learn more about Overland Park office space for lease, give one of our commercial realtors a call at 913-685-4100!

Examples of Tenant Considerations When Renting Office Space in Kansas City

Many tenants are prepared to sign a landlord’s standard lease without really considering their business’s needs or engaging in serious negotiation. Here are a few examples of things your business might consider before signing your lease:

Landlords sometimes tie increases in rent to the CPI, or Consumer Price Index. What is the rationale for this and what are some common pitfalls of this clause?
Often start-up businesses are planning to incorporate, but have not yet done so when they sign their lease. What are the ramifications if this occurs?
How can 501C businesses seek financial benefit from their non-profit status?
Is it better for a tenant if a lease says it will “gross-up” operating expenses or if the “gross-up” is determined as if the building was 95% leased?
What are the most common items that careful tenants request to be excluded from the meaning of “operating expense”?
The landlord takes care of any future issues that might be harmful to them, but what are the negotiating positions of the tenant?
What are some compromise positions in a lease that will protect a tenant from having to pay for necessary services that are not delivered?
Does the lease provide for the landlord to be able to relocate a tenant to a “similar” space? If so, what tenant concerns about this possibility should the lease address?
What liability limitations should the tenant seek to include in the lease?

This list represents just a few specific considerations a tenant might keep in mind. Researching what questions to ask specific to your business can help make you as a tenant more prepared to negotiate a lease.

Give one of our commercial real estate brokers in Overland Park a call at 913-685-4100 and get answers to any of your questions and concerns are as a potential Southcreek Office Park tenant!

Commercial Real Estate in Kansas City Terms to Know

Are you beginning the process of looking for affordable office space in Kansas City? The real estate rental process can be full of unfamiliar jargon. Here are some basic terms and definitions you might want to be aware of:

A-2 Survey: A legal survey of the measurements of the boundaries of a property, its area, and even its topography. The survey might also include fencing, utility feeds, easements, encroachments, etc. Often this document is required by mortgage holders and is stamped by a licensed land surveyor.
Acre: a measurement of land in any shape that is equal to 43,560 square feet.
Add on Factor: a generally accepted definition that describes the percentage of square footage added on to the base square footage of floor area to account for common areas of a building that are used by all tenants.
Assignment: A transfer to another party of any real or personal property or of any rights or estates in that property. Typically assignments are of mortgages, leases, deeds, or trust, but the term can be used to describe any transfers to title.
Base Rent: The rate determined for the commencement of the lease. This might be subject to yearly increases unless the tenant negotiates otherwise in the lease, Addendum, or an attached amendment. This phrase can have different meanings for different landlords. In some markets, landlords might use it to refer to the rental rate per square footage minus operating expenses.

Check back for later posts on more real estate terms to know!

To find out more about some available office space in Kansas City, give Southcreek a call at 913-685-4100, and find out about the benefits of renting with us!

Find Out About Flexibility When Renting Office Space in Kansas City

When choosing an office rental space, you will want to know how flexible the management of your office lease is going to be in accommodating your needs as a potential tenant. You might want to ask yourself and the owners of the office space a few questions to see if they will be able to work with the particular needs of your business:

•   Do you want 24/7 access to your office, or are you fine with typical 9 a.m. to 5 p.m hours?
•   Do you need mail forwarding services for when you travel?
•   What is the office space’s policy on children?
•   Is it possible for you to stop by for only a few hours during the week to work?
•   Are the services and spaces scalable in the event that you need to expand because of future business growth?
•   Is the office space already configured, or can you design it according to your business’s needs?

Knowing the needs of your business and employees before you sign a lease can help you avoid unforeseen flexibility problems. Ask yourself and your broker these questions to help you determine whether an office is a fit for you!

Did you know that Southcreek Office Park management is always accessible to our tenants? We are more than happy to help you figure out space and technical requirements, modifications to the space, leasing questions, preparation and décor, security, maintenance, and more. Give one of our commercial realtors in Overland Park a call at 913-685-4100 to ask any questions you might have!

Technology and Office Space in Kansas City

The role of technology is an important aspect of the business world in the 21st century, and your technology preferences could even affect your office lease choices. This does not necessarily mean that high-tech is better. Depending on your business’s specific needs and size, you might want more or less technology. Some companies want all the technology possible from a rental space, so they do not have to worry about their business carrying those costs. Other businesses might be on the other end of the spectrum, and would rather use their own technology to have it under their control, because what they have meets their particular needs and they are happy with where they stand. Either way, here are a few different technological amenities you might have access to in an office rental space:

•   Printing and faxing services
•   A server room
•   High speed internet
•   Teleconferencing
•   A dedicated phone line
•   Virtual assistant services
•   Plug and play opportunities
•   Networks between computers
•   Data storage

When you are looking for an office rental space, don’t forget to ask about and consider the available technology, taking into account both what the rental space has and what your business really needs.

Give one of our commercial real estate brokers in Overland Park a call at 913-685-4100 to find out about technology at Southcreek Office Park. We have spaces that have minimal technology, some that have only copy rooms and server rooms, and some that are completely outfitted with plug and play opportunities! Talk to us about your business’s technology needs so we can help you find the perfect space.