Preparing to Find New Space for your Business or Renew your Lease
Here are a few questions to ask yourself before you begin the process…
- Is it more beneficial for me to spend time gaining experience in my profession or learning the real estate market?
- Do I have the resources needed to effectively find the right space such as time and money?
- Have I considered the possibility that I have disregarded one of the necessary steps in the process of finding a new location or renewing our existing lease?
- How will I know if I am getting the best deal on property I am considering and can I obtain additional benefits, for example, free rent – given current market conditions? If these incentives are available, how will I know that I am receiving the best deal for my company?
- Is the landlord giving me a fair deal in comparison to the previous leases?
- In future events of my company, will this building suffice for expansion or contraction? Will my company be protected in either case?
- Does the building I am acquiring have all the essential utilities such as internet access, sufficient parking space, HVAC, and a comfortable environment for clients?
- Are the landlords and or property managers easy to work with or will they create unnecessary roadblocks after the lease is signed?
- Are the arrangements in the lease fair or in favor of the landlord? (Typically, attorneys will review and negotiate legal terms of the lease) Have I established the terms that are negotiable based upon the landlord’s prior compromises?
- Since the lease will be the dominant source for settling future disputes, will my company be weak or strong in regards to the lease?
- Are there any occupants in the building or other tenants arranging leases that may consequently impact my company’s existence negatively?
- Is the building available for purchase, and if so what kind of entities can buy it? An institution or experienced independent investors? What kind of impact will that have on my company?
- In comparison to the landlord, what are my company’s responsibilities in the case of a natural disaster?
- How does my company remedy a situation in which the landlord neglects providing building services particularly functioning elevators, air conditioning, water, and electricity?
- How can I know whether or not the landlord is trustworthy and honest about “plans” to renovate common areas of the building?
- Upon expiration of my lease, how will I protect my company if market conditions favor the landlord in regards to lease renewal?
- If the landlord fails to provide space that was promised after the lease is signed and products and services are ordered, what happens? How can I be sure the landlord will deliver? If not, what happens to our company?