Businesses at various times throughout the life of a company face an analysis of whether to renew their lease or relocate to another property. This analysis is extremely important since it impacts one of the highest fixed operating costs of a company and not to mention the impact on employee productivity. Fuller Commercial Real Estate offers assistance to companies that are in the process of analyzing their decision to renew or relocate to alternative space. Your primary focus is on operating your company not in having to learn the vast variables of the office market. The market is not only about rental rates and finding an acceptable building location. It includes the following items:
- how space is measured (usable vs. rentable square footage).
- what is included in the rental rate (gross, full service, modified gross, etc).
- what is the loss factor of the building and how to compare to other properties
- what is the tenant improvement allowance (below ceiling, “cold” shell, “warm” shell etc.)?
- some office building locations can impact your work force with an additional layer of taxation.
- is the lease fair to both parties or is it one sided to favor the Landlord.
Many tenants misunderstand this process and believe it adds to cost of the lease. This is not the usual situation since most real estate fees are already build into the price and is typically paid whether or not you have representation. If you have representation, the fee is shared between the listing agent (landlord representative) and the tenant representative. The leasing process of negotiating for office space is complex and time consuming. Having a good tenant representative will save you time and money and help keep you from making any critical mistakes.
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