subject: 7 Mistakes That Tenants Make When Leasing Office Space [print this page] Hey, we all make mistakes but when it comes to leasing office space for your business, mistakes equal dollars sometimes big dollars. Here are the ten most common mistakes tenants make when renting Office space tampa, as well as an insiders take on how to avoid making them.
1. Lack of Planning: Believe it or not, many tenants arent clear on what exactly they need. If youre out looking for ten thousand feet but you actually need twelve thousand, youve got problems. Likewise, if you think you need two thousand feet but you could really accomplish the move with only eight hundred square feet, you may end up wasting money you could utilize elsewhere.
INSIDERS TIP: have an architect do a space program and figure out what size you need
A lot of architects will do this for free as a favor to your tenant rep broker. Between a good architect and a good broker you can get clear on things you might not be thinking about, like floor load capacity do you have a safe or a lot of equipment then you need re-enforced floors.
Do you need extra electric to your space or have special telecom needs? Knowing these details up front will save you time, money and aggravation down the road.
2. Lack of document inspection. Leasing an office space means a whole lot of paperwork. One of the most common mistakes tenants make is that they are not careful enough with what they sign.
Make sure you inspect the lease terms such as required notice and other move out conditions to avoid a costly fee or forfeiture of your security deposit.
Further, the ownership documents need to be vetted too. Make sure your space is legally zoned for commercial purposes and for your use in particular, and that it conforms to various safety codes and is built in accordance with the prevailing rules and regulations.
INSIDERS TIP: have the HVAC (air and heat) unit in your space inspected before you sign the lease. Landlords will routinely say in the lease that the unit is in good working order. But they often presume this to be true but dont actually check. If you take possession and the HVAC unit needs to be replaced, it will cost you a big chunk of change.
3. Rent and security deposit: Before agreeing to the monthly rental, many people do not benchmark similar properties, and end up paying rent through their nose. It is important to compare similar office properties and find out the going market rent in that area before entering into negotiations with the owner. The security deposit must also be based on demand, supply and the regular market norms. However, if the owner of the office space seems to be in a tearing hurry to rent out his place, you can always negotiate with him and save yourself some money.
4. Not Checking Lease Terms: A tenant must read and understand the lease terms carefully.
Are you comfortable with the notice period? Lets say the landlord has the right to relocate you to another floor or space in the building (something that is common for smaller deals) how much notice do they need to give you?
What if the lease says 30 dayscan you really pack up and execute a move of both your physical stuff and your technology in 30 days? Probably not.
5. Underestimation of Negotiating Leverage. Tenants have a tendency to think that the landlord is all-powerful, but thats not the case. Ultimately, a landlord is in a service business, and his business is to keep his building full. If this means he has to negotiate with his tenants to fill his spaces, he may do so.
Research the area. Knowing what similar spaces go for will help with negotiations. Just make sure that the building, office, and services are comparable.
6. Working with a Biased Broker. Tenants sometimes feel that if theyre hiring a big real estate company, theyll be better represented.
The big firms that represent both tenants and landlords will argue that they know all the angles.
While this is true, the reality is that their loyalties always lie with the landlords. When it comes down to it, a big firm will side with the landlord over the tenant.
7. Too Little Time. Tenants drastically underestimate how long it takes to either renew a lease or to move. Depending on how much space you have and how complex your technology is, it could easily take 6-12 months to negotiate your deal double or triple that if youre really big.
If you need to make a quick move or you are worried about timing, executive suites are an excellent choice as they can typically be move in ready in 1-2 days, rather than months.
New Urban Suites boasts a prime location in Tampa, FL. The eco-friendly Tampa office is the areas first New Construction LEED Certified Office Building and is centrally located on 7th Avenue in Ybor City.
New Urban Office suites tampa solutions to meet any business needs and budget. Full-time, furnished executive office suites include full technology including a dedicated phone line with personalized call answering, Internet, garage parking, and allow access to three conference rooms, a full kitchen, copy, print and fax services, and clerical services. Virtual Offices provide a professional business address, mail and package handling, as well as a dedicated phone number with live reception. Members enjoy all the services and amenities of a complete office suite at a fraction of the price.
