I have seen many, many businesses consummate leases here in Phoenix over my time as a broker, and I have seen many things done right, but I have also seen many things done wrong. Below is a list of the top 5 things businesses do wrong when searching to lease office space.
1. Be Realistic- So many business owners want to rule the world, but that doesn't mean that they can. Business owners need to get real, and recognize that they can only afford so much while remaining profitable. I recommend business owners take a good look at their financial statements and set an amount that they can really afford. Landlords will not lease to a business if they think the business will fail. Having a fixed amount also helps your broker identify properties more quickly and effectively. Also, having a fixed rental amount will help business owner negotiate terms more effectively.
2. Allow Enough Time- Businesses need to realize that locating, negotiating, executing and moving into an new office space takes time. I've seen it done in less than a week, but offices under 2000sf can do that, with lots of snags, and sleepless nights. Remember it will take about 2-3 weeks to find properties, including touring locations. If a buildout is needed expect to wait another 4 weeks at a minimum or if all that is needed is carpet and paint expect to wait 2 weeks. Then to negotiate the terms and review the leases will take another 2 weeks at a minimum, depending on your attorney and broker. Once leases are executed and the Landlord has received the first months rent and deposit, the business can move in. 6 to 9 weeks is generally enough time.
3. Make Friends with the Landlord- Just be professional. I don't think Tenants/Businesses should allow a Landlord to work them over in the negotiations, but in order to make your three to five year stay as an office tenant as good as it can be, try to be honest with one's landlord and respect his/her time and money. If a business lies to a Landlord, or waste his/her time, that will not be forgotten when your first service request is received by the Landlord, which will be performed begrudgingly and late. Trust me any business owner, I'm sure, does not want a toilet clogged, lights burned out, no janitorial service for more than 1 day.
4. Parking- Just realize that having parking is necessary, plan and negotiate for a realistic amount of parking.
5. Hire 1 Commercial Real Estate Broker- Do not call around to 5 different brokers and hire them to find space. If a business owner wants to see everything on the market, the business owner needs to hire one commercial real estate broker and communicate that desire to the one broker. If a business hires more than one broker, then the multiple brokers will search the same 2-3 databases and show the business the same 20 properties. The business will have wasted their own time, and the brokers time.
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Top 5 Things Businesses Do Wrong When Searching to Lease Office Space
Posted by Brandon Koplin in Office Leasing Phoenix, Top 5 Things Businesses Do Wrong When Searching to Lease Office SpaceI have seen many, many businesses consummate leases here in Phoenix over my time as a broker, and I have seen many things done right, but I have also seen many things done wrong. Below is a list of the top 5 things businesses do wrong when searching to lease office space.
1. Be Realistic- So many business owners want to rule the world, but that doesn't mean that they can. Business owners need to get real, and recognize that they can only afford so much while remaining profitable. I recommend business owners take a good look at their financial statements and set an amount that they can really afford. Landlords will not lease to a business if they think the business will fail. Having a fixed amount also helps your broker identify properties more quickly and effectively. Also, having a fixed rental amount will help business owner negotiate terms more effectively.
2. Allow Enough Time- Businesses need to realize that locating, negotiating, executing and moving into an new office space takes time. I've seen it done in less than a week, but offices under 2000sf can do that, with lots of snags, and sleepless nights. Remember it will take about 2-3 weeks to find properties, including touring locations. If a buildout is needed expect to wait another 4 weeks at a minimum or if all that is needed is carpet and paint expect to wait 2 weeks. Then to negotiate the terms and review the leases will take another 2 weeks at a minimum, depending on your attorney and broker. Once leases are executed and the Landlord has received the first months rent and deposit, the business can move in. 6 to 9 weeks is generally enough time.
3. Make Friends with the Landlord- Just be professional. I don't think Tenants/Businesses should allow a Landlord to work them over in the negotiations, but in order to make your three to five year stay as an office tenant as good as it can be, try to be honest with one's landlord and respect his/her time and money. If a business lies to a Landlord, or waste his/her time, that will not be forgotten when your first service request is received by the Landlord, which will be performed begrudgingly and late. Trust me any business owner, I'm sure, does not want a toilet clogged, lights burned out, no janitorial service for more than 1 day.
4. Parking- Just realize that having parking is necessary, plan and negotiate for a realistic amount of parking.
5. Hire 1 Commercial Real Estate Broker- Do not call around to 5 different brokers and hire them to find space. If a business owner wants to see everything on the market, the business owner needs to hire one commercial real estate broker and communicate that desire to the one broker. If a business hires more than one broker, then the multiple brokers will search the same 2-3 databases and show the business the same 20 properties. The business will have wasted their own time, and the brokers time.
