Assignment & Subletting Clauses Are Necessary in Office Space Leasing

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Office SpaceThe steps one must take to lease commercial office space are plentiful in number. Once you find the perfect office space to lease, you then have to delve into the lease terms and negotiations to ensure that the arrangement is beneficial to you, the tenant. The commercial lease has many terms to read through and there are certain clauses which must be included in order to properly protect you as a tenant. Two clauses in particular which are a must when it comes to lease inclusion include the assignment clause and subletting clause.

When you enter into a lease, you never know what the future may bring. Most business owners would like to believe that they will be in the leased premises to the end of the lease term but this is not always the case. Instances may arise where exiting the commercial office space ahead of the lease term expiration is a necessity. This is where assignment and sublease clauses will come in handy.

Understanding Assignment and Sublease Clauses

With both of these clauses, the current tenant may have another tenant move into their position under the current lease. With an assignment, the tenant will assign the remainder of their lease term to another tenant. From that point forward, the initial tenant is no longer involved with the lease agreement. As for a sublease situation, the initial tenant will have a new tenant take their place in the lease but the initial tenant will still be responsible for any payments which the landlord does not receive from the subletting party. In general terms, an assignment clause is more favorable to a tenant than a subletting clause as it allows the tenant to be done with the lease once and for all as soon as the new tenant enters the picture.

How the Inclusion of These Clauses Will Safeguard the Tenant

Both of these clauses will safeguard the tenant by providing them with a way out of the lease agreement, in some form, should they need to move out for any reason. No business owner expects that they will have to leave prior to the lease term but there are certain instances which may occur that make it necessary to assign or sublet the remainder of the lease to another party. When the clauses are included within the lease, this provides an option for the tenant, if it is needed.

Landlord May Insert Various Requirements in the Assignment and Sublease Clauses

There may be certain specifications included within these clauses to help protect the landlord’s financial security should an assignment or sublease take place. The landlord may require that the new tenant is financially secure and will be able to pay rent when due. There may also be some added fees that the current tenant must pay to the landlord in order to ascertain the financial stability of the new tenant, such as fees for credit checks, etc. All of these factors can be discussed during lease negotiations to ensure that both parties are safeguarded in the arrangement.

Always review your lease prior to signing it and make sure that an assignment and/or sublease clause is present and will benefit you as the tenant.

Steps For Using Financial Analysis Results In Negotiations

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There are many ways to negotiate when it comes to commercial office space leases. Financial analysis is one tool which will help in your negotiations with current or prospective landlords. The financial analysis is the process by which you consider all of the costs associated with the lease and then use a financial program to come up with an end figure detailing how much the lease will truly cost you as a commercial tenant. It is these figures which will help you in the negotiation phase of commercial office space leasing.

Why You Need Financial Analysis for Negotiations

Negotiations for commercial real estate leasing are time-consuming and involved in nature. You are not simply renting a home or an apartment, you are securing an office space lease which often carries with it a lengthy lease term. There is plenty to discuss during commercial leasing negotiations and large amounts of money at stake. Therefore, you want to be sure that the negotiations work well in your favor, the tenant. Financial analysis figures will help to show the landlord what you will be paying, outside of simply the base rental payments.

There are many other costs to consider with commercial office space leasing and you want to bring such costs to the attention of the landlord. This will also be a beneficial path to pursue, since you want to determine what your landlord will pay for and what you will be responsible for paying on your end of the tenancy. A financial analysis will lay it all out on the table and ensure that no stones are unturned during the leasing negotiation process.

Steps for Using Financial Analysis Figures During Negotiations

When a landlord is figuring out how much to charge a tenant for rent, they look at the effective rental rate. This rate takes into consideration factors such as market rental rates seen in comparable buildings, building operating costs and total transaction costs. With these three encompassing factors in mind, the landlord comes up with the rental rate. How do tenants go about reducing the rental rate asked for at negotiations? By completing a financial analysis of their own. By doing so, the tenant can show that certain aspects should be less, or more, in cost to get the negotiations to favor their side and, ultimately, result in a lesser amount on the overall rental rate.

To have your points duly noted, use a proper financial analysis program to come up with the figures. This will hold the most weight when you are in the negotiation phase with your landlord as you have concrete figures to show for your point of view. Also, have a tenant representative along with you for the negotiations. It’s important to be properly represented so that you are not going it alone in negotiations with the landlord. Lastly, be reasonable with your requests, especially if the office space is a highly coveted one and there is a bit of competition as to other prospective tenants wanting the same location as you. The landlord will be less likely to be flexible if there is another business owner out there who will pay the asking price for the office space lease.

Financial analysis is extremely important in commercial office space lease negotiations and you want to make sure you sit down at the negotiation table with financial analysis paperwork in hand and a tenant representative by your side.

Image Is Everything – Does your office send the right one?

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Clients, customers, and even employees make snap decisions based on appearance. Your office needs to send the right message the instant people see it. People need to know that they made the right decisions in choosing you—your company. Give it to them, but cautiously and with deep consideration.  Image is everything – does your office send the right one?

We are wired to make instantaneous judgments. It has gotten us this far, and Mother Nature is not likely to abandon the system. After all, it is a jungle out there.

Office Value

Your office space should make the right first impression. It also needs to follow through with that impression. This means looking great, but it does not mean making it look like you are putting more money into decoration than your product. You don’t want to undersell your space either. Find a balance. If you are charging a million bucks, your commercial office space should look like it. Likewise, your office space should look like the model for cost-efficient process if your product is.

In addition to portraying the right value, your space should convey the right values. This is considerably easier than identifying a financial image. Trust your company’s core values and ask people if your space agrees with those values. Does this look trustworthy; does this look personable; timely; creative…? These are all great questions to ask on behalf of your office space. Find the answers and you identify success.

Leasing Commercial Office Space In Schiller Park

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Schiller Park is a smaller village located outside of Chicago in Cook County. With 11,793 residents calculated during the 2010 census, this suburb is small enough to exude a small-town feel but large enough to accommodate businesses of all varieties. Leasing an office in Schiller Park will put your business less than 15 miles away from downtown Chicago, which offers ease of access for those in the city to reach your business.

Transportation Options in Schiller Park

There are quite a few transportation options for individuals who live and work in Schiller Park. Transportation by car is easily achieved when your business leases an office in Schiller Park. Due to its suburban location, one won’t face the driving and parking issues which they do in the downtown Chicago area. With that said, Schiller Park is close enough to Chicago that it sees all of the public transportation options available to those who live and work in big city. Pace bus routes and a Metra stop in Schiller Park make public transportation a breeze for residents, customers and employees. You will also find taxis available as well.

Amenities Are Plentiful in Schiller Park

Schiller Park is home to many wonderful amenities for those who live and work in town. Dining establishments such as Great Escape, Mantra and Hubcaps will keep the Schiller Park residents and business employees well fed while shopping opportunities exist at many area stores, including those local to Schiller Park. For those seeking recreational activities in Schiller Park, the village offers great amenities such as the recreation center, activities center and water park. There are also plenty of parks and recreation leagues in Schiller Park to choose from as well.

Why Your Business Belongs in Schiller Park

The aforementioned items provide you with some insight into why your business belongs in Schiller Park. The location is convenient, transportation options are available and the amenities are great in number throughout town. You will also find that the customers who will utilize your services and buy your products, will be from both in the village and surrounding areas, too. There are many surrounding towns in close proximity which is ideal for the business owner who wishes to draw in out-of-town clients. You will find that by leasing commercial office space in Schiller Park, you will have access to many beneficial things in addition to plenty of customers who live in and around Schiller Park.

Leasing Options Await Your Business

Some business owners who are eager to lease office space may wonder if their business will be welcome in Schiller Park. The answer to this question is, “Yes!” Schiller Park leasing options exist, no matter whether your business is industrial in nature, a small corporate office or some other type of business. The leasing opportunities exist in Schiller Park, no matter what your company may do with regard to industry. Although certain areas will be zoned to suit particular businesses, office space is readily available for lease within Schiller Park.

Start looking for that ideal Schiller Park office space today.

Wheeling Commercial Office Space

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Wheeling, Illinois is a village located in Cook and Lake counties. With a population of 37,648 per the 2010 census, Wheeling has a good residential base, which is a selling point for businesses looking to lease office space there. Located 30 miles northwest of Chicago, this suburban location is ideal for those business owners who wish to be outside of the city yet close enough to head into town when they so desire.

Getting Around Wheeling with Ease

Wheeling transportation options are plentiful. You can travel by train, bus or car, and get where you need to go with ease. The Metra line has a stop in Wheeling and the Pace bus line offers service throughout Wheeling as well. For drivers, there are many local roads which provide easy ingress/egress as well as I-294 which runs close to the village. Having multiple transportation options will help to get your employees and customers to and from your business. Therefore, ensuring that ease of access exists is a must for business owners contemplating a new office space lease.

Things to See and Do in Wheeling

Business owners will appreciate that there are plenty of things to see and do in Wheeling. Shops such as Wheeling Flowers, Walgreens, Lynn Plaza Shopping Center and Radio Shack are some store options for individuals, especially business owners and their employees who wish to do a little lunch break shopping. For dining options, Wheeling offers restaurants such as Rise N Dine Pancake Cafe, Joe’s Pizzeria, Cooper’s Hawk and Saranellos, to name a few. These options will provide dining and shopping offerings for the business owner and employees before and after work but also for customers of the business.

For those who like to get outdoors, the Wheeling Park District offers 19 sites to choose from in the way of recreation. There is also the Chevy Chase Golf Course, Family Aquatic Center, Community Recreation Center and an outdoor ice rink in the winter.

Why Your Business Will Fit in Well in Wheeling

Wheeling is a village which will welcome your business, no matter what industry it may fall within. There is always room in Wheeling for business expansion and leasing Wheeling commercial office space there will help you to set up shop and start bringing in customers and clients. There is also a good, solid customer base in Wheeling. Not only will your business gain customers who are Wheeling residents but also those who live outside of town and come into Wheeling to do business.

Get Started Finding Your Wheeling Office Space

There has never been a better time than the present to open your business doors in Wheeling. An easy way to get started is to contact a tenant advisor to help you with the search. Not only will this tenant representative point you in the right direction with regard to a commercial office space lease but they will also help you to get the best lease terms when negotiating with your future landlord.

Wheeling is the ideal spot for your business, large or small.