Leasing an Office Building.?

Question

Our dept is moving into new office building. Our acquisition dept is handling the lease.

Out of curiousity-what things are needed in negotiating an office lease? This building is going to support at least 20 employees.

Thanks...

Answer 1

Negotiating a commercial lease is very lengthy and involved. There are licensed real estate agents to do this for you. So unless the in house guys have a state license and have learned how to do this, you can expect to get yourself a good old case of reemed!!

The professionals in commercial leasing are considered some of the toughest nails in the plank. Don't go it alone with these folks. They'll have you thinking you are getting a fabulous deal and a cherry on top. All the while many thousands of dollars will be lost in their favor.

Answer 2

You will be negotiating the terms and conditions of the lease such as who pay's utilities, taxes, insurance and maintenance. If the lessee pays for them then the rent will be cheaper. If the lessor (landlord) pays for them then the rent will be more expensive. Also, who will renovate the building to suit your company. This is called tenant improvements and the landlord will agree to modify the building to suit the tenants requirements in exchange for a higher rent. Also, how long the lease will run for , how much per year is the increases, is subletting allowed and are there any options to buy (usually for freestanding buildings). These are the major points of a lease.