Calculating Your Commercial Office Rental

Commercial office leasing is very popular. There are many reasons for this but there are also several pitfalls that can be avoided with careful planning. This article provides some tips on how to make sure you will be able to get the best deal from your landlord.

Calculate Your Costs All commercial office rental agreements vary greatly in price. You need to get a clear idea of how much it will cost to lease your place and ensure you are getting the best deal possible. You need to calculate your startup costs and operational expenses. Be clear about these things from day one so you do not find out too late that it was all going to cost you more than you bargained for. When you get your final quote, you can be sure you have been able to negotiate the best deal possible for yourself.

Be Prepared To Hire A Tenant If you choose to rent an office space, you will be in complete control of who you let it to. For that reason, you should be prepared to do all the negotiating you need to with your tenant to get the best possible deal on your lease. Landlords normally hire an attorney or real estate agent to help them with this aspect of the leasing process.

Protect Yourself Against Triple Net Losses A common issue that arises when you rent office space is that of triple net lease increase penalties. These are charges that occur if the tenant of your space leaves your premises before you have the lease term expires. There is no way to avoid these charges. They happen whether the tenant likes it or not. It is why it is so important to think carefully about the terms of your lease. You may find that you can protect yourself to a great extent by taking out a triple net lease agreement.

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Pay attention to the terms of any lease negotiations. The best way to protect yourself from rent increases is to carefully negotiate for no load factors. No load factors means that you will only pay for the actual square footage that you occupy. For example, if you own a 3-bedroom home and lease it to three tenants, each of whom occupies a bedroom, you will be charged for the entire square footage, not just the amount of square footage that you actually occupy. For landlords with more than one property, they may also want you to agree to a no load element on the basis that they will then be responsible for rent increases above the no load element.

Some landlords will also want you to agree to a certain a percentage above the no load factor. Again, you should never sign such agreements. Instead, use the information available on the type of property that you are renting to work out how much you can safely raise your rent accordingly. The information that you receive on the type of property that you are renting is called a a percentage and is usually written on the application form that you receive when you rent the commercial property. Your landlord should be able to supply you with this information.

If you find a commercial property that has a high sf percentage but a low rent per square foot, it might be time for you to shop around for another property that has a lower load factor. Commercial office properties that have a higher load factor are usually located near public transportation and have good access to amenities such as restaurants or shopping malls. These properties may also have better security and parking availability. If your goal is to save money on your commercial property rental payments, you may want to consider a property that has a lower load factor, as well as a lower rent.

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The sf percentage and the rent per square foot are the two main factors considered when calculating your commercial property lease. You will also need to consider the tenant’s address and common area, as well as other things related to the property that relate to its use. However, there are many other considerations, so it is important to think about every aspect before you sign on the dotted line. If you take the time to do your research, you should be able to get a great deal on your new commercial property.