8 Tips When Managing Your Commercial Lease Transactions

June 18, 2019 Don Catalano Don Catalano

Commercial lease transactions are lengthy, complex processes. Fortunately, you can take steps to simplify and streamline lease transactions while still ensuring that you get the ideal space with the fairest agreement possible. Following these tips will pay off for your company:

 

1. Begin as Early as You Can 

Commercial lease transactions take several months to complete. Beginning the process 18 months to even two years ahead of time can ensure that you aren't rushing toward a deadline. If you can't afford to give yourself that much of a head start, you should still begin as soon as you can.

 

2. Get a Clear Picture of Your Needs

Don't make the mistake of jumping right into looking at properties to lease. You'll find it much easier to compare potential offices if you have a clear picture of your needs. Establish your budget and then assemble the members of your management team. Have each one create a prioritized list of needs with must-haves at the top and would be nice to haves at the bottom. Conduct a survey to find out what your employees value in office space and what methods of transportation they use to take to work.

 

3. Assemble the Right Team 

Doing everything on your own during a commercial lease transaction can be a costly mistake. Make sure that you have a lawyer on your side to look over lease agreements and a tenant rep broker to help you find the best spaces and negotiate a fair deal. In addition, you may want to look for a space planner or architect to assist you with preparations for build-outs.

 

small team

4. Know the Market Before You Start

Conducting market research in the location where you intend to lease is crucial. When you know the prevailing trends, you'll be better able to determine when a lease agreement is fair.

 

5. Keep Your Options Open

Even if you quickly find an office space or building that seems perfect for your needs, you should keep looking until you have two or three options. This way, you won't have to begin the process all over again if negotiations on your first choice reach an impasse.

 

6. Go Paperless Where Possible 

Avoid sifting through countless papers by keeping as many documents as you can in digital form. Use cloud sharing services to easily send documents to your team, attorney and tenant rep broker. This also creates an easy-to-review paper trail for the future.

 

7. Be Willing to Give 

When it comes time to negotiate, go in with your list of wants from your team in mind. Being willing to give up items that aren't that important or offering to sign a long-term lease can help to ensure that you walk away from the negotiating table with your must-haves.

 

renegotiate

8. Don't Forget the Small Stuff

It's easy to focus on the biggest items in the lease like the base rent and CAM, but don't forget about the fine details. Make sure that you carefully review clauses that deal with signage and parking to avoid hassles in the future.

 

Here are a few other articles we know you'll enjoy:

How Much Does a Tenant Rep Cost?

5 Tips to Consider When Designing an Office Layout

5 Reasons Technology is Important in Commercial Real Estate

 

Subscribe to our blog for more CRE Tips!!
Subscribe Now

 

Related Articles