Although boundaries and rental terms of usage are significant variables to consider when one is searching for commercial spaces where he can conduct his own business. Normally, small businesses will inevitably be concerned about monthly rental fees. Office space leases can also have hidden costs on top of the rental fees. These hidden costs can really traumatize lessees because they can ridiculously upsurge the monthly rental fees.
In order for potential lessees to avoid being surprised by their ridiculously monthly rental bills, they have to take the step in asking the lessors some questions to clarify things. Here are some questions that should aid people in deciding whether a certain commercial space suit their needs and of course, budget.
1. How much is the basic rent on utilizable square footage?
Normally, office space leases have a base fee which refers to the amount that you are going to pay for the definite square footage of the said space. However, this has a high probability of being increased due to “CAM” and “loads” fees that will be combined to the base rental fee.
As a lessee who intends to strike a reasonable deal, it is your duty to negotiate with the lessor/s to omit or decrease these “loads” and “CAM” fees. In addition, it is also your duty to be informed about this stuff because it’s your money that’s going to be at stake.
2. Are the conditions stipulated in the lease contract negotiable?
By the word negotiable, it applies to the rental advance, base rental fee, free rent, duration of the lease, rental yearly fluctuation, lease renewal choices and security deposits. This seems like a daunting task due to the sheer number of stuff that needs to be accounted for but it’s worth the effort. If you are good enough to negotiate then it means a lot of savings on your part.
You don’t have to settle for really ridiculous prices because a lot of things can be bargained reasonably.
3. Will there be taxes that need to get paid aside from the monthly rental fee?
Taxes are another pain in the neck but are very important to be taken into account. Clarify this with your lessor. Ask them whether they’re going to pay for the tax or it will be added to your base rental fee. Make sure that whatever has been discussed and agreed should be put in black and white.
Ensure that each cost that needs to be taken care is acknowledged specifically on the lease agreement.
4. Will there be a yearly increase to the rental fee?
Sometimes, when you lease an office space for around five years, there’s a good chance that your monthly fees will remain fixed until such time that you will be renewing your contract. Most of the time, however, annual increases on base rental fees are inevitable or expected. They’re part of the business. Real estate business men and women not only earn from rental fees but from yearly increases as well.
5. What kind of support will the lessors provide to their tenants?
Aside from the budget side of things, as a potential lessor, it is your responsibility to discuss with the lessor the types of support that they’re going to give to their tenants. Are they going to shoulder the space maintenance costs? Will they also provide security support? What about the space’s renovation?
If you happen to be looking for a commercial space somewhere in Chicago, the http://42floors.com/office-space/us/il/chicago webpage will be of great service. Don’t forget the questions above.