Why You Need A Renewal Option

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As a prospective tenant in a commercial office space lease, you not only want to consider your current lease term but the prospect of a future lease term as well. The best time to secure your interest in a future lease term is when you sign your new lease for the current lease term. A renewal option clause in the commercial office space lease will secure your future lease option and provide you with the opportunity to renew your lease term upon its expiration, provided you give the requisite notice. The following will provide some reasons to negotiate a renewal option clause for the lease you are about to sign for your current lease term.

Inclusion of a Renewal Option Clause Secures Your Future Tenancy

Although you may not know whether you’ll want to stay in your current lease location after your initial lease term expires, the time to put the renewal option clause into your lease is prior to signing it. It’s so important to reserve the right to renew your lease when the time comes. This is what will allow you to stay in your current location for another term, should you desire to do so. Your future tenancy is not secure if you don’t have a clause within the current lease to ensure this is so.

The Renewal Clause Is an Option Not a Requirement for the Tenant

Some office space tenants may be hesitant to have a renewal option clause in their lease as they think it requires them to renew the lease upon expiration of the current lease term but this is not the case. The renewal clause provides an option to commercial office space tenants and does not require them to renew the lease in the future. This is an extreme benefit for the commercial tenant, more so than for the landlord because so long as this clause is in the lease, the landlord has no other option but to allow the tenant to renew if they choose to do so. That is, as long as the tenant is paying their rent on time, adhering to other lease terms/requirements, etc. In other words, so long as the tenant is a “good tenant” overall.

Renewal Option Must Be in the Lease to Be Applicable

If you want to reserve the right to renew your lease down the road, the renewal option clause must be in your current lease to positively secure this option. The terms which govern your tenancy are included within the lease. Since the renewal option is a lease term, this also must be in the lease in order to effectively be used in the future. This renewal option should state the terms of the renewal lease and let you know what you are signing up for should you decide to renew your current lease.

It’s vital to have a renewal option within the lease. This lease term will allow you to renew should you choose to do so in the future and will work to benefit you, the tenant, in the long run.chicago office space listings

Commercial Real Estate in Chicago: Considering a Coffee Shop?

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Are you considering turning your love for coffee into a reality? In today’s world, 63% of young people want to start their own business. So, why not go for it? It is quite the intimidating process; however, it is achievable. Sure, you have to develop a business plan and the delicious coffee you’re going to sell, but do you know what the most important is? The answer: the space. In order to run any successful business, you’re going to need the perfect commercial real estate space to operate. One of the fastest growing industries in Chicago is small coffee cafes. In order to survive in this fast paced industry, there are a number of things that you must look at and consider:

1. Is the space big enough the serve the goal of the business: Can you see your business growing and flourishing in the environment? It is always important to determine if the potential space can contain all of your equipment, products, and projected clientele.
2. Is the space affordable: Are you going to be able to afford the space? Think about whether or not the space will make or break your business. You want to have the perfect balance between spend and return on investment.
3. Is the space owned by someone you can see yourself doing business with: Is the landlord fair and ethical? Always make sure you can have a working professional relationship with the person that owns the potential space.
4. Is the space in a part of the city that will draw in potential customers: Is the space located in a hip or heavily populated area of the city? You always want to make sure you target a good audience of people.
5. Is the space under a fair, negotiable lease: Is the lease something that makes sense to sign? Is it legal and fair? Always pay attention to the detail in the lease.

There are many notions to think about when you’re planning to open your own business, and it is vital to ask all the right questions when considering a space for your business. You may even consider looking for help when you’re searching for commercial real estate. Don’t be afraid to make the process easier.

Questions to Ask Your Landlord before You Lease a Property

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Moving into any new property—especially an office—is stressful business. A thousand questions might flood your mind, but it is important to keep calm and cool throughout the process of looking for space to utilize for your professional purposes. You want to make sure that you’ve found the perfect place for you. You want to know for a fact that you’re getting the best deal possible. You want to ensure that the landlord is a person that you can actually do business with. These are absolutely normal thoughts and concerns to have; however, right about you’re about to sign that lease you want to be certain that you’re making the best decision for your needs and goals. So, right before you make that final decision make sure to ask the landlord some of the following 10 hard-hitting questions:

1) Is the lease short or long-term?

2) Do you pro-rate rent?

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3) Where and how is rent paid each month?

4) Are there additional fees on top of the rent?

5) Is there property management on site?

6) Are there regular inspections of the property?

7) Are there rules against personalizing your office?

8) If there is a deposit, is it refundable?

9) Is there any maintenance work that I am responsible for?

10) Are there any improvements or construction planned for the building in the near future?

This is one of the most important steps in finding the perfect location for you. If you require additional service in finding office space in the Chicago area, consider contacting a tenant representation service to help you throughout the process.

The Difference between Renting and Leasing Office Space

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When choosing office space, most business owners think about the location or the interior design. However, one of the most fundamental questions to consider when approaching the decision is whether to rent or lease. While many people think of these two terms interchangeably, they are actually very different arrangements that can have an impact on your business.

A rental agreement is typically a month-to-month contract that is renewed automatically at the end of the month unless the landlord or tenant specifically says otherwise. By contrast, leasing office space is a longer commitment, usually with contracts for six months or a year. Leases are not automatically renewed, but they can be renegotiated or changed to a rental agreement.

A rental agreement provides more flexibility. However, rental agreements are also subject to change. This means that the landlord can raise the rent or change other factors of the agreement at any time. Since a lease is a longer commitment, the terms cannot be changed throughout the duration of the contract, which provides increased stability.

Although the month-to-month contract may appeal to business owners for its flexibility, the unpredictability of these contracts can make it hard to plan ahead. Moreover, if the terms change unexpectedly, the property may become unaffordable or impractical. For this reason, many businesses will benefit from leasing office space for their business goals.

Affordable Office Space Lease: Considerations To Follow

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chicago office space listingsA lot of consideration goes into leasing commercial office space. This is not a small-term or residential lease, so you want to be sure that the office space you select is one which will fit your needs as well as your budget. Not sure how to accomplish this goal with certainty? The following three factors are important considerations to take note of when leasing affordable office space and ones which will greatly help with the final decision.

Structure and Layout Will Dictate Price

When searching the various office space leases, keep in mind that the structure and layout will dictate how much you spend on the overall lease cost. You want to consider if you are going to embark on any structure changes and how much that will cost you. An office space which is ready to go and needs little revision to the structure or layout will save you money and be the most cost effective lease arrangement.

Location Is a Determining Factor with Lease Cost

Where your prospective office space is located will be a factor in how much you pay. Consider the desired location carefully when you search as this can save money. By moving a short distance away and refocusing your search on a neighboring area, but still one which is beneficial for your business, will oftentimes offer a reduced cost. How much an office space landlord charges for rent will depend on the location and the demands associated with it. If you are considering two different locations, where one will be more cost effective, consider the pros and cons to see if the less expensive location will be just as efficient as the pricier one. This will save money and leave you with an office space location which is reasonable in price and will serve your company just as well.

Lease Terms Can Coincide with a Reasonable Price

Chances are that the landlord will have a set price in mind for the lease. However, this doesn’t mean that terms are non-negotiable. The more beneficial the lease terms are for the tenant, the higher the lease price may be. With that said, the future commercial tenant must always negotiate for the best possible terms and still aim for a reasonable price. No lease terms are concrete and everything is up for negotiation when it comes time to discuss the lease. The tenant should always broach favorable lease terms and seek out an affordable lease cost while obtaining exactly what their company needs in an office lease.

Finding an affordable office lease is not an unattainable goal. It can be achieved by choosing an appropriate structure and layout for your office space, picking the right location which will also be cost effective and making sure that you get all of the lease terms to suit your needs and the needs of your company. Although commercial office space leasing may be competitive in certain areas, there are still plenty of options to choose the best office space lease which will accommodate your company or corporation perfectly without having to pay a fortune.