small office lease in Kansas City

8 Small Office Lease in Kansas City Tips Every Businessperson Should Know: Part III

Learning a little about negotiating leases is an essential part of step in finding a new office rental space. Here are some tips to help you navigate the process:

5. Rules and regulations. The most forgotten part of leases is the rules and regulations section, but the smart tenant, broker, and attorney will always go over the entire lease. A lot of people skip the rules and regulations section because it mostly consists of non-issues such as “no pets” or “no sales.” However, this section could have some issues that actually do pertain to you as a tenant, such as building hours or rules about cooking in your suite.
6. Cost-pass-throughs. If your business is moving into a partially occupied or new building, protect yourself from the problems of moving to a building that takes a while to lease up. Add some protection to the Cost-pass-through provision in your lease by ensuring that your landlord is required to base your annual cost-pass-through upon a 90-95% occupied building.

It is hard to keep track of all of the details you need to remember when negotiating a lease, but doing a little research beforehand will help you have a better idea of what you need to consider.

If you are looking for a business space for rent in Overland Park, give a commercial real estate broker in Overland Park a call at 913-685-4100 to find out about our available and affordable spaces!

Tips for After You Relocate to a New Kansas City Office Space for Rent

Moving to a new state can be almost as much work for a small business owner as when you first started your business. Just as when you first started up, you will need to register and comply with state and local tax laws and apply for any necessary permits and licenses. Here are a few items to put on your checklist to get done once you have moved:

Register with your local government for any business permits or licenses you might need. There are online tools to help you figure out what permits and licenses you might need based on your new zip code and your business type.
Make sure you register for a “doing business as” naming permit.
Contact the local revenue agency to apply for a new tax ID number and make sure that you are aware of all city and county business tax regulations.
Be sure to take care of your employer responsibilities, such as disability insurance, unemployment insurance, and worker’s compensation insurance, which you can take care of on your state’s website.

These are all legal issues that you need to take care of when relocating, but which you can address after you have already moved into the new location.

Looking for a small office lease in Kansas City? Give us a call at 913-685-4100 to find out about some of our commercial space for lease in Kansas City!

Getting Initial Asking Terms in Writing for a Small Office Lease in Kansas City

If the landlord or leasing agent you are working with only gives you the terms verbally, ask for the terms in writing before you draft a counter offer. You can simply ask for them in an email or a copy of the listing containing basic leasing information if the agent or landlord is hesitant to give you a letter. Here are some reasons why it is so important to get the initial leasing terms written down:

Agent Misunderstandings. A leasing agent is working for the interests of the landlord, and it is possible that they could misunderstand the directions of the landlord, or even possibly attempted to alter them. If you have the terms in writing, you can show the landlord that you made a counter offer in good faith based on the information that the leasing agent had given you.
Your Misunderstandings. If you are simply told the terms, it is also possible that you could misunderstand them and not be able to go back and reference them as you write a counter offer. Misunderstood information could lead to you making a counter offer that is either too high or too low.
Research time. Asking for the terms in writing also buys you a little time to research more about the lease, compare terms to other potential leases, or to consult an attorney about the terms.

Remember that asking for terms in writing does not legally require you to move forward with the lease. You can still either counter the terms or just turn them down if you do not think they will work.

If you are looking for an office space for rent in Kansas City, give Kathy Woodward at DDI Commercial a call at 913-685-4100 to find out about our commercial listings!

10 Things To Do Before Signing a Small Office Lease in Kansas City: Part II

Before you sign your final lease, make sure you take the time to go over a few things that could save your business money and hassle in the long run:

5.   Think about asking for a CAM Stop lease. A CAM Stop lease means you will only pay for increases in CAM and property taxes after you base year (initial lease year). Even though the landlord might increase your base rent, this provision will eliminate some of the “mystery fees” from your rent. You could also ask for a cap on the CAM so that it will only increase by a certain percent that you have already negotiated.
6.   Read the CAM definition. This is one of the most confusing parts of the lease, and you will want to make sure you aren’t paying for things that are not your responsibility. Things to look out for include things related to the landlords marketing efforts, legal fees for negotiating other leases, administration fees over 3%, benefits for the landlord’s employees, and any build-out expenses for other spaces.
7.   Understand your capital expenditures responsibilities. “Capital Expenditures” in a commercial lease usually includes expenditures for major repairs/replacements (roof, foundation, HVAC, etc.). The standard for capital expenditures varies from state to state, but you will want to do your best not to have to bear the full burden of these costs. Perhaps talk to your landlord about limiting your obligation to regular maintenance or general repairs only up to a certain annual amount.

It is important to look out for these and other issues before you sign your office space lease in Overland Park.

Give us a call at 913-685-4100 to start talking about leasing an affordable office space in Overland Park!

10 Things To Do Before Signing a Small Office Lease in Kansas City: Part III

Here are some final tips to think about before signing a lease for your new executive office rental in Overland Park:

8.   Find out if the lease is assignable. If you find yourself in a position where you need to sell your business, location could be a major part of its sale value. You will want to check whether or not the landlord has the right to terminate the lease in the event that you sell your business and ask for an assignment, because terminating the lease could kill your sale. See what you can do to eliminate or modify this clause, but understand that your landlord will still want to retain the right to reject the assignment if the buyer is financially unacceptable.
9.   Plan to provide a guarantee. Most landlords these days will want you to personally guarantee your lease, but these guarantees are negotiable. Ask to provide that you are only required to guaranty for a portion of your lease term, or see if you can get a guarantee that only last 6 months to a year after the termination of your lease, rather than the rest of the lease term.
10.   Be realistic. Understand that landlords are going to be more or less likely to negotiate with you depending on what percentage of their larger property you are renting. Perhaps consider hiring a lawyer to help you best understand what is worth negotiating for so you can best pick your battles.

Remember that finalizing a lease requires a lot of careful—and sometimes tedious—double-checking and negotiating if you want to set your business up for success in a new space!

Give a commercial real estate broker in Overland Park a call at 913-685-4100 to learn more about our available spaces!

10 Things To Do Before Signing a Small Office Lease in Kansas City: Part I

You have found the perfect office space, negotiated your rent, and now you are getting ready to sign the dotted line…before you do, here are some things you should double check:

1.   Read the lease. Though it may be long and not the most exciting reading, you need to know what is in your lease. Check terms, important dates, anything rent-related, your obligations, your landlord’s obligations, special terms, and termination clauses. You want to know exactly what you getting yourself into.
2.   Continue negotiations. Even though you have been given the lease, some of the terms might still be negotiable. While reading your lease, take note of provisions you aren’t thrilled with and talk about with them with your landlord—you might be surprised at what you can still change.
3.   Figure out your business’s legal structure before signing. Make sure that protective corporate shell is in place before finalizing your lease. Be sure that your filed Articles of Incorporation or Organization (sometimes called Certificates) have been returned from the Secretary of State.
4.   Understand the leasing terminology. Know terms like “Common Area Maintenance” (CAM) and how they will affect your business and rent rate.

See future posts for more items to double-check before finalizing a lease for your office space in Overland Park, KS!

Want to learn more about Southcreek’s business space for rent in Overland Park? Give us a call at 913-685-4100!