What can you negotiate when leasing an office?
When you read the list of tips for office space lease agreements you will definitely find recommendations concerning negotiating the optimum contract terms. Including how to negotiate when you sit at the table with potential landlord. Here are some of the main areas you can negotiate to get favorable conditions for the company.
Base rent
Go to the bargaining table, armed with knowledge about rental rates that apply to similar space in buildings in the surrounding area. If you prove that other companies are paying less, you can ignore the proposed bid and offer a reasonable deal. If the landlord does not want to agree to your terms, ask for a discount on the initial rent to compensate for the relocation costs. This is how you can save for the first few months of the lease.
Improvements
Basic improvements like painting the walls or putting new carpets cost building owners very little, but have a big impact on the visual appeal of the offered office space.
Rent raise cap
Most lease agreements include a provision on potential annual increase in rent. The landlord will probably be willing to include it, but you can fight for a fair raise cap. This way, you will not get an unpleasant surprise when the rent increases.
Subleasing
If you have the opportunity to sublease all or part of the occupied space to another tenant, it can be very beneficial. Especially, when the company needs change to get rid of the unused space in the office. If the sublease clause is not included in the agreement, ask for one.
Common space index
When leasing space, you pay for more than just the used square meters in your office. You also pay for maintenance of the common areas in the building. The exact amount depends on the multiplying factor. Find out how the building owner calculates it. If you have a small company, you can justify the request to reduce the factor at which the cost is set to lower your total rent.
Maintenance costs
Expenses related to the maintenance of the buildings, such as taxes, ongoing repairs and maintenance, or landscaping, cost you as a tenant. Find out precisely what is included in these costs. If any item appears to be incorrectly charged, request to have it excluded. In addition, operating expenses are usually calculated on the basis of costs incurred in the previous year. As a result, you can eliminate them from rent in the first year of lease, before they are calculated.
Priority rights
First refusal and first offer may be very beneficial to your business. Many owners may be tempted to add them in the contract. In the first case, the owner cannot offer the space that you rent to another tenant at the end of the lease unless you confirm that you do not want to renew the lease. First offer ensures that the landlord must offer new space to you first, offered under the same conditions that would be given the other clients before showing the offer to other companies.




