office space lease Overland Park | Southcreek

Six Tips for Successfully Negotiating an Office Space Lease in Overland Park

It can be tough to start and grow a business, but one thing that is currently in your favor as a business owner is the excess of commercial real estate available on the market. But even in this buyer’s market, negotiating a commercial lease can be a complex and intimidating process that requires careful research and preparation. If you have already found your perfect space, here are some tips for crafting a lease that suites your business:

#1 Understanding Expenses

Just like in a residential lease, landlords for commercial real estate will try to add extra costs such as maintenance fees, Common Area Maintenance costs, and more. Be sure to discuss utilities—these are typically your responsibility as a tenant, but be aware of how they are measured, either assigned by square footage or individually metered. Seek out any other hidden fees, and inquire as to how much tenants typically pay annually for these various expenses. Know what costs you will be incurring besides rent so that you do not find yourself surprised by anything once you are already locked into the lease.

#2 Setting Your Lease Term

The duration of your lease and the amount of rent you will pay is the first negotiation point. The key is to give yourself some long-term flexibility but not over-commit. It is better for smaller businesses to stick to one or two year leases with the option to renew. You need to also discuss rent increases over your term and what your renewal options look like so you do not find yourself dealing with any unexpected increases that could hurt your cash flow and margins.

Be prepared for some pushback from the landlord; they are typically more in favor of long term leases and will try to get you to agree to a longer term. Getting a broker involved who is familiar with the market can help you avoid any tricks and pitfalls. Remember though that the broker is getting paid commission by the landlord, so it might be worth talking to a real estate lawyer before finding a broker. They might be able to recommend a good broker and act as a consultant throughout the negotiation process.

Being aware of these and other negotiation points can help facilitate smoother negotiations. Be on the lookout for ways that you can get a better deal for your business—or lease clauses that could hurt your business. A well negotiated lease can facilitate a successful and productive tenancy!

If you are considering leasing an office rental space in Overland Park, give a commercial real estate broker in Overland Park a call at 913-685-4100! All of our spaces are located in the heart of Johnson County, which puts your business close to all of the amenities and services the Overland Park area has to offer, including hotels, health clubs, restaurants, banks, and more! Give us a call today to set up a tour of one of our available affordable spaces!

Common Terms in an Office Space Lease in Overland Park: Part IV

Do not miss out on an opportunity to negotiate the best lease terms for your business because you do not understand the language of leases! Here are a few more insights into common commercial lease terms:

7. Rent. For small businesses, rent is a crucial part of the lease. It is important to look carefully at this clause for any of the following potential costs or savings:

Unexpected expenses—be sure you know exactly what parts of the landlord’s operating costs are being passed along to your business.
Savings that might make it possible for your business to take on other expenses—for instance, a landlord could offer you a “tenant improvement allowance” for improving the space before you move in.
Any other issues you might want to renegotiate, such as periodic rent increases.

8. Security Deposits. A landlord might ask for a security deposit to cover expenses if you fail to pay rent or meet other financial obligations. Residential landlords in many states are limited to only asking for two months’ rent as a deposit, but commercial landlords are allowed to ask for any amount they think is necessary to cover any of these expenses. Alternately, they might ask for a “Letter of Credit” from your bank, which states that the bank has put aside a specified amount for your landlord’s use in the event you fail to meet a financial obligation.

Be aware of these clauses as you enter negotiations so that you can advocate for your business’s needs!

If you are considering executive office rental in Overland Park, give a commercial real estate broker in Overland Park a call at 913-685-4100 to find out about our available spaces!

Common Terms in an Office Space Lease in Overland Park: Part III

It is important to be aware of what kind of clauses you will encounter in a commercial lease, as there are many different factors associated with renting a space that your business will need to consider before signing. Here are a few more examples of clauses you will most likely find in your lease:

5. Term Clause. This clause will probably be near the beginning of your lease and gives the length of the lease, along with specific beginning and end dates. It might be tempting to gloss over this section, but it is important to pay attention to details here. For instance, the lease might state that the start date is the day you sign the lease, which would mean that from that day on you are responsible for rent and often other obligations, such as carrying insurance. To avoid this potential issue, you want to make sure your lease includes several dates stating when you can move in, when rent is due, when you are responsible for insurance, etc.

6. Insurance Clauses. There are several different types of insurance available to your business, so you will need to evaluate each one as it relates to your landlord’s requirements, the needs of your business, and the property. An insurance broker can also help with this process, especially when it comes to determining an adequate level of coverage.

Coming in prepared to negotiate will help you achieve the best possible lease for your business!

If you are interested in Kansas City office space for lease, give one of our commercial real estate brokers in Kansas City a call at 913-685-4100!

Common Terms in an Office Space Lease in Overland Park: Part II

As you enter negotiations for an office space lease, you will want to have some idea of what clauses you can expect to find in the lease. Here are a few more common lease terms that you will typically run across:

3. Use Clause. The use clause defines how you will be able to use your space. Limitations might include what kind of business you will conduct, what products or services you will sell, or even something as vague as the quality of your operation. Landlords might impose these restrictions for a few reasons:

The landlord is worried about liability issues for certain types of businesses.
The landlord has made agreements with other tenants to not rent to competition.
The landlord dislikes certain kinds of business activities.

You will want to try to avoid these restrictions as much as possible; in the best case scenario, your landlord does not include this clause at all.

4. Exclusive Clause. This is a promise by the landlord that states that you are the only business in the mall or building that may carry a certain product or engage in a type of business. If you have this clause, it means that other tenants will have clauses that forbid them from conducting business that would violate your exclusive clause. Typically the most powerful “anchor” business in a building gets these exclusive rights.

Do a little research and be prepared to be a savvy negotiator for your business!

If your business is looking for Kansas City office space for rent, give Kathy Woodward at DDI Commercial a call at 913-685-4100!

Common Terms in an Office Space Lease in Overland Park

Once you have settled on a space and reached an agreement on basic things like rent and lease length, it is time to deal with the formal, detailed elements of a lease. It is crucial that you head into this step with an understanding of common clauses found in commercial leases to avoid any traps and help you negotiate for changes in your favor. Here is a list of a few common lease clauses to have some background on:

1. Parties. A lease usually begins by naming the landlord and tenant in a clause called “Parties.” This may seem like a fairly basic part of the lease, but it is important to look closely at it to make sure your business’s exact legal name is used. If there is an error in the way you are identified—for instance, if you are a corporation or LLC and give your personal instead of corporate name, you could become personally responsible for the lease, opening you up to personal liability.

2. Premises Clause. Also at the beginning of your lease will be a clause typically titled “Premises” that identifies the space you area leasing. If the space is an entire building, this clause should simply include the address, but if it is a more specific space, you need to make sure that your space is described in more detail. For instance, if you want access to things like parking lots, storage rooms, kitchen facilities, conference rooms, or other amenities, you will want the lease to list those specifically.

Make sure that there are no surprises on your lease by being prepared when you enter negotiations!

Looking for affordable office space in Overland Park? Give a commercial real estate broker in Overland Park a call at 913-685-4100 to find out about our available spaces!

Making Sure an Office Space Lease in Overland Park Will Fit Your Business

Before signing the dotted line on your lease agreement, carefully look over the terms to make sure that the lease is really meeting your business’s needs. Here are a few things to think about as you review a lease:

The rent and lease length – Can you afford rent? How long is the lease? You probably do not want to get stuck in a five to ten year lease if possible. This can be a difficult lease to be in if your business grows more rapidly than you anticipated or the location turns out to be less than ideal. Your best option is a short term lease with option to renew.
The physical space – Does your business need modifications to the original space? For instance, do you need to raise a loading dock, add some cubicles, or rewire for better communications? If so, confirm that you or your landlord is able to make those kinds of changes.
Considerations specific to your business – Think about minor things, such as your signage privileges if you expect primarily walk in customers, or whether or not your landlord can lease nearby space to competitors.

It is so important to go over your lease carefully—as tedious as it may be—to make sure that the needs of your business are being met. Know what you are getting yourself into, or your business could pay for it down the line.

If your business is looking for an office space in Overland Park, KS, give a commercial real estate broker in Overland Park a call at 913-685-4100!

9 Ways to Save On Energy Expenses in Your Office Rental Space in Kansas City: Carpool

Saving energy could also mean personal savings for your employees when it comes to transportation. Helping them out with this could both make your business greener and increase employee satisfaction. Here is some information on carpooling as a way to go green at the office:

Tip #2: Carpool

Transportation is one of the biggest sources of greenhouse gases, and high gas prices can make the commute personally expensive to employees. Some employees might appreciate employers’ effort to make commuting or carpooling easy and a way to save money in the long run.
Try to come up with fun incentives to encourage people to use public transportation or carpool. Employees who use public transportation, walk, or bike could get financial help with transit passes, coupons to local businesses, small prizes, or even bonus vacation days. You could create designated prime parking spots for carpools to encourage people to share rides, or subsidize the cost of parking passes if you do not have dedicated parking.
Keep your employees informed of carpool and public transportation options by keeping a folder in a break room or on your intranet with lists of bike trails, carpool groups, and public transportation schedules. Consider starting a RideShare Program (http://www.marc.org/rideshare/) to make finding carpooling options easy for employees.

Not only will carpooling or public transportation use help your business’s green efforts, it could also increase your employees’ job satisfaction by saving them some money.

If your business is considering an office space lease in Overland Park, give us a call at 913- 685-4100 to find out about our affordable office space in Overland Park!

5 Red Flags to Avoid in an Office Space Lease in Overland Park: Part III

Here are two final red flags to be on the lookout for as you negotiate your office space lease:

Red Flag #4: A Bad Relocation Clause
A relocation clause will always favor the landlord, since it gives the landlord the right to move your business to a different space within a building if a tenant with a bigger business needs your space. Though you will not be able to do away with this clause, remember that you do have a right to ask for certain provisions. Make sure you get a written statement that your landlord will pay for the relocation and any renovations required. Ask to maintain the same structure and quality of space, plus the same rent, and insist on at least one month’s notice before you have to move.

Red Flag #5: Short Terms and Unclear Renewal Clauses
Unless you are positive you only need a space for a short period of time, make sure your lease offers the option to renew. Renewal options should be clearly defined and state how much time you need for renewal as well as a percentage of how much rent might increase. Options to renew give your business flexibility, so opt for those over long-term leases if you are a start-up company not wanting to make too long of a commitment.

Negotiating and understanding a lease can be a tedious process, but it is essential to making sure your business does not find itself in financial trouble down the line. Take the time to do your research and even talk to an attorney about what you want—and don’t want—in a commercial lease.

Searching for office suites for rent in Kansas City? Give a commercial real estate broker in Kansas City a call at 913-685-4100 to talk about our office space leases!

5 Red Flags to Avoid in an Office Space Lease in Overland Park: Part I

Signing a lease is a major financial commitment. If you carelessly agree to your lease without fully understanding it, that decision could be hugely detrimental to you and your business. It is essential that you understand all of the terms in your lease, possibly with the help of an attorney if need be. Here are a few red flags to be aware of when going over your commercial lease:

Red Flag #1: “Trust Me”
While you want to build a relationship with a landlord based on trust, it is always smart in a business relationship to put everything in writing. Do not rely on verbal agreements or oral modifications in your lease; transcribe any agreement into a document that both parties can sign.

Red Flag #2: Vague Fees.
Make sure that any fees you have to pay are clearly spelled out in the lease. Some landlords might attempt to charge you for extra fees, but never pay any unanticipated or occasional expense that is not mentioned in the lease.

Red Flag #3: A Lease That Restricts Your Improvement Potential
You have to anticipate that your business might grow during the term of your lease, so try to modify a lease that restricts you from improving or altering your space.

Take care to avoid pitfalls like these when signing a lease!

If your business needs an affordable office space in Overland Park, give a DDI Commercial real estate broker in Overland Park a call at 913-685-4100 to find out what we have available!

Chase Suite Hotel Chiefs Package for Southcreek Office Park Tenants

Attention football fans: the Chase Suite Hotel in Overland Park is offering Chiefs Football Packages for the upcoming season! These packages start at $179 per night plus tax, and include a one night stay in a Studio Queen Suite, two club level tickets to a home game, a hot breakfast buffet, and one parking pass. You can also book an additional night stay for $69 plus tax. Here are the home games for which this great deal is available:

vs San Francisco 49ers – 8/16/13
vs Green Bay Packers – 8/29/13
vs Dallas Cowboys – 9/15/13
vs New York Giants – 9/29/13
vs Oakland Raiders – 10/13/13
vs Houston Texans – 10/20/13
vs Cleveland Browns – 10/27/13
vs San Diego Chargers – 11/24/13
vs Denver Broncos – 12/1/13
vs Indianapolis Colts – 12/22/13

To check availability, email tgatewood@chasesuitehotels.com with contact information and the game you hope to attend. Advance payment is required, and you must book your package at least 72 hrs before game day. Quantities are limited, so take advantage of this deal soon!

If your small business is looking for its first office space lease in Overland Park, give us a call at 913-685-4100 to find out about our office suites for rent in Overland Park.