Is your lease expiring on your commercial real estate property? Are you considering taking the leap into your own office?

Regardless of where you are at with your commercial real estate journey, there are a few key things you should consider when renting a new office space. 

Without these steps you may find yourself at a disadvantage, paying more than you should and getting fewer benefits for your dollar. 

This blog will run through some key steps you should take when entering into a new commercial lease agreement. 

Start thinking about it early

The leasing process can be lengthy and complicated, so it’s important to start getting ready early. 

While you may think you have months to prepare, it’s never too early to get started. Otherwise, it will sneak up on you and you may find yourself having to move faster than you want. 

Your office space can have a huge impact on the success of your business, so you want to make sure that you get it right. You don’t want to waste time and money by not being ready. 

This process isn’t something that you want to rush, and it helps to be prepared. 

Do your research

Research is one of the first things you can start doing to get prepared. You want to research the area that you are interested in, what the property market is like, what type of commercial building you want, whether there are rent increases or other issues in your industry. 

You will also want to consult your accountant and other team members in order to ensure that your business is ready to handle the costs of the moves, from the security deposit, new equipment, fitout and ongoing cost of renting, such as maintenance and utilities. 

There is a long list of things that you need to research in order to have the right knowledge, so you want to be on top of this.

You will also want to do research on your potential landlord and real estate. These are people you will likely have a long term working relationship with, so you want to make sure that you know them well and that they are credible and trustworthy. 

Understand your space requirements

When renting an office, it’s incredibly important that you understand your space requirements. 

Depending on how you plan to use your commercial space, you will need to prioritise different things. If you just want an office as a coworking space, then you may have less space requirements. 

However if you need specific equipment and machinery, then you will need to make sure the place you are renting can properly accommodate this. 

You want to make sure that you get a space that is big enough, but also not too large for you. 

Consider your long term goals

When signing your lease, it’s a good idea to understand what your long term goals are for your business. While you may be a small business now, if you plan to expand and grow your business in the coming years, there are a few things you should consider. 

This will affect both the size of the commercial property you choose, as well as the duration of your lease. 

If you are planning to hire a lot more staff in the future, you want to make sure that you get a space that is big enough for this.

Alternatively, you could be planning to move into an upgraded space in the future, so you may only want to sign a shorter term lease. 

Longer term leases will often end up being cheaper, as you are committing to staying there for longer. However, you will want to be certain that this is the place your business should be run for that extended period of time. 

Every lease is negotiable, so talk to us! 

You don’t have to just accept the lease terms that you are offered, it’s important that you negotiate for a better deal, rather than just taking whatever you are given. 

Englander Principal has a 95% global success rate. Our experienced team of negotiators have proven themselves by consistently securing the best commercial lease agreement terms for our clients. 

If you are negotiating for yourself, you may not have the proper research or experience to get the best deal. 

As a prospective tenant, you should be trying to get the best commercial lease incentives that you can. If you are going to be paying rent for many years, getting a reduction to your base rent or any other savings can go a long way in helping you succeed. 

We aim to help business owners free up their cash flow so that they can reinvest back into their own company, and see greater success and growth.

When you work with us, we are on your side. 

We are not commercial real estate agents, we don’t find the property for you, but we can connect you with our network of real estate agents across Australia and worldwide. 

We work on a No Win, No Fee basis, meaning there is no risk when you work with us. 

We charge a 15% commission on a successful case, meaning if we win, and for example negotiate a 12 month rent free period worth $80,000, you save $68,000. 

If that sounds like a good deal, then book your FREE consultation here, and get ready to save money on your next commercial lease agreement.