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Faizan
If you are searching for a suitable office for your business, be it a start-up company or an established organization, it is important to understand the terminology that landlords and advertisers may use. If this is a subject that you have not explored previously, you may feel slightly confused by the different terms that are given. The following information should allow you to deepen your understanding of this subject and help ensure you focus your search on the right real estate options.
An important issue, and one that is going to allow you to narrow down your options considerably, is space size. The exact configuration and square footage of the office premises typically conforms to the standards set out by the Building Owners and Managers Association international guidelines. Usually, there are specifications given in relation to usable and rentable floor space.
A lease term is the length of the contract that a prospective tenant is expected to sign up for. Though leases are in their nature negotiable, the typical length for an office space is three, five, or ten years. Before you commit to a particular lease, you should put together a realistic projection of the growth of your business.
Most office leases indicate a date for the delivery of premises. This can be different from the commencement date which is when the tenant takes full possession and begins to pay rent. The delivery of premises date is when access is provided, usually if construction or alterations are to be carried out by the tenant prior to full occupancy.
The rental rate is the dollar amount that a tenant is expected to agree to pay for use of the premises. It can be quoted as a gross amount, or a value net of operating expenses such as maintenance costs, insurance, and taxes. It is important to have a clear understanding as to how much additional costs would total above the rental rate. This can vary considerably depending on how many other businesses operate from the same building.
When presented with an office lease contract, it can be essential to be aware of the renewal and termination options. For continuity, it is important if a renewal option is available. Being given the exclusive right to extend the term of a lease can help to maintain business stability. Not all lease contracts would come with a termination option, those that do usually stipulate a specific price for taking such action.
An important issue, and one that is going to allow you to narrow down your options considerably, is space size. The exact configuration and square footage of the office premises typically conforms to the standards set out by the Building Owners and Managers Association international guidelines. Usually, there are specifications given in relation to usable and rentable floor space.
A lease term is the length of the contract that a prospective tenant is expected to sign up for. Though leases are in their nature negotiable, the typical length for an office space is three, five, or ten years. Before you commit to a particular lease, you should put together a realistic projection of the growth of your business.
Most office leases indicate a date for the delivery of premises. This can be different from the commencement date which is when the tenant takes full possession and begins to pay rent. The delivery of premises date is when access is provided, usually if construction or alterations are to be carried out by the tenant prior to full occupancy.
The rental rate is the dollar amount that a tenant is expected to agree to pay for use of the premises. It can be quoted as a gross amount, or a value net of operating expenses such as maintenance costs, insurance, and taxes. It is important to have a clear understanding as to how much additional costs would total above the rental rate. This can vary considerably depending on how many other businesses operate from the same building.
When presented with an office lease contract, it can be essential to be aware of the renewal and termination options. For continuity, it is important if a renewal option is available. Being given the exclusive right to extend the term of a lease can help to maintain business stability. Not all lease contracts would come with a termination option, those that do usually stipulate a specific price for taking such action.
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