How to Find the Perfect Chicago Office Space

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Finding the perfect office space can seem like a daunting task. This is especially true for those who are unsure of the move or who don’t know where to start. Therefore, you should take a moment and decide what properties are important to you in a new office space. There are various aspects that should be considered when you are searching for the perfect Chicago office space.Chicago Office Space

Consult a Real Estate Agent

You may be tempted to research properties alone. However, when looking for a new office space you should consider consulting a real estate agent. It can be hard and time consuming to find an inexpensive space that fits all of your business needs. An agent will be able to take on the burden of finding a space to fit your specific needs while you concentrate on your business and preparing for the eventual move. These professionals have plenty of experience and know exactly how and where to look in order to get you in your new space as soon as possible.

Consider the Location

It can be hard to find the perfect office space at the right price. However, one thing that is very important when searching for the perfect space is the location. You want to choose a location that is easy to get to for your client’s convenience. You also want to be in a safe and secure area. Another thing to consider is if there are amenities such as restaurants or coffee bars nearby for both clients and employees.

Determine the Perfect Size

When choosing a new office space, you may be tempted to select a very large office. However, you should consider the size of your business before decided on the size of the office and how soon you may need more space. If you only have a few employees, you should choose a smaller location. Still, you also don’t want to choose a too small space that will make employees and clients feel cramped, especially as you grow. You need to find the middle ground.

When choosing a new office space, you should first decide which properties are the most important for your business. Once you do so, you should contact a real estate professional who can assist you with finding the perfect office space for your needs.

What Are Your Signage Options When Signing Your Office Lease

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When you lease or buy commercial office space, you’ll want to advertise your presence at the location in one way or another. When you buy the office space, you will usually have countless options as to signs on and around the premises. However, if you lease commercial office space, there may be restrictions in place concerning placement of signs or even restrictions stating that no signs are allowed and you are basically a hidden entity from those passing by. This is why it’s important to ask about signage options, requirements and restrictions before you sign the lease.

Why Is Signage Important?

First and foremost, you want the proper signage outside of the leased commercial office space advertising your business so customers can find you, whether they are current customers or prospective ones. When you have the proper signage, your customer base will improve as will your business’ income. This type of advertisement is the easiest way to draw people in and a cost-efficient method as well.

Why Might Landlords Restrict the Use of Signs?

There are a few different reasons why landlords may restrict the use of signs by their commercial tenants. First, they may not have the room to allow all tenants to put up signs, especially if there are many office space tenants within the building. Also, there may be city restrictions and zoning laws regarding signage, which wouldn’t be the landlord’s fault but simply something which prevents the tenant from advertising at the building. In addition, the landlord may not want a bunch of signs all over the building and simply restrict signage for that purpose alone. These are some of the more common reasons why landlords don’t want signs on their property.

How Does the Tenant Go About Getting Their Sign Up and Presence Known?

The best way to get your sign posted, whether it is a stand-alone sign only promoting your business or your name on a large sign alongside all of the other office tenants within the building, is to negotiate properly with the landlord during the lease negotiations. Some landlords will be flexible with regard to signage and, in this case, getting your sign posted is not a big deal. However, for other landlords who may be more hesitant to allow signs, you’re going to want to negotiate this factor prior to signing the lease.

If the landlord refuses to allow you to put up a stand-alone sign, see if they would agree to an addition to a sign already posted which has other office space tenants listed on it. This shouldn’t make or break the lease deal, however, if it is that important to you as a tenant, which it should be, try to work with the landlord to get some sort of signage posted. After all, if people don’t know where you are located or new customers can’t come across your business with ease, this will hurt you as a business owner. Negotiation is key so try to work with the landlord to secure some type of signage along with your commercial office space lease.

Office Space Tenants Often Pay More Than Just Rent

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Office SpaceWhen business owners lease commercial office space, there is often more to consider in the way of expenses than just rent. One would like to think that a rent payment each month or year would cover all of the tenant’s costs, but this is usually not the case. Most office space tenants will have to pay an additional rent, such as operating expenses, under the lease terms. Here are some things which all commercial office space tenants must keep in mind when signing a new office space lease.

Business Owners Are Responsible for Rent Plus Operating Expenses

In addition to paying the set rent for the office space, commercial tenants will also pay operating expenses. These are items which the landlord must pay out in order to keep the building running. Some of these costs may include taxes, insurance, utilities, common area maintenance and more. Since these can be quite costly, it only makes sense to have the tenant share in some of the financial responsibility for operating features which they make use of as well.

The Costs Will Be Stated in the Lease

These operating costs may be few or many in number, depending on the individual commercial office, landlord, location and added features of the building itself. In order to have the right knowledge regarding what the tenant is responsible for and how much these items may cost on a monthly or annual basis, the operating expenses must be listed in the lease. The lease must be very detailed regarding what the tenant is required to pay, what the landlord will pay and how and when these payments are due.

Operating Expenses May Fluctuate Throughout the Lease Term

It would be nice if there were concrete numbers with regard to operating expenses, however, many times these operating expenses will fluctuate. In fact, most operating expenses will vary in amount but there is usually an average number for which the tenant can calculate approximately how much they will be paying in addition to the base rental payment. For most office space tenants, they will have to pay a portion of the operating expenses based on the amount of tenants in the office building, if more than a single tenant setting, and what the landlord requests in the lease. Although the portion of the operating expenses which the tenant needs to pay will be a set percentage, the cost of the operating expenses will still fluctuate.

The Best Way to Understand Operating Expenses Is With a Tenant Representative’s Help

Operating expenses can be a bit difficult to understand, especially if one is new to the commercial office space leasing arrangement. In order to have a good grasp as to what these operating expenses are and how much you will need to pay, having a tenant representative by your side during negotiations, lease signing and beyond will help. The tenant representative will thoroughly examine the operating expense clause and provide you with detailed information on what you will need to pay in addition to your commercial office space rent.

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.

Office Space: Make The Tenant Improvement Allowance Work For You

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Many office space leases will be a good fit for companies yet there may be some improvements which have to be done in order to make the premises a perfect fit for the tenant. For this reason, tenant improvement allowances are often included within the commercial office space lease. These allowances come in different forms. Two of the most common forms include a turn-key build-out and a fixed rate allowance.

Difference Between a Turn-Key Build-Out and Fixed Rate Allowance

With a turn-key build-out tenant improvement allowance, the landlord will pay all costs to get your leased premises situated the way that you want them to be. On the other hand, a fixed rate allowance is when the landlord will give you a set amount of funds and anything over that amount will need to be paid by you, out-of-pocket. Both provide tenant improvements for the company owner leasing the space, however, both are quite different in nature.

With the turn-key build-out, you will be ensured that the money is paid for your improvements, however, you may not have the last word regarding what is done, how it is completed and when it is completed by. The landlord will have more control over the work. With the fixed rate allowance, you will have more control over what improvements are made and when but you may find yourself facing some out-of-pocket costs in the end if the project costs more than what was allotted to you under the lease.

How to Benefit from the Tenant Allowance

In order to benefit most from the tenant allowance, consider what improvements you plan on making to the leased premises. If you only plan on completing simple repairs and construction, a turn-key build-out might work fine for you because you won’t need too much control over simple tenant improvements and you will be ensured that the landlord pays for everything which has to be done. If your tenant improvements are more voluminous in nature and you can figure out exactly how much money you need to get the job done and want to ensure that it’s done according to your specifications and schedule, a fixed rate allowance might be best.

Keep in mind that you may always negotiate when it comes to tenant improvement allowances. You can choose a hybrid form of the two options listed above to have the type of tenant improvement allowance which will work in your favor. You may ask the landlord to provide for a turn-key build-out allowance but request that you be able to choose a project manager to oversee the entire project and have this individual report to you. Should you prefer the fixed rate allowance, ask if the landlord would be willing to pay for any extra money needed during the process, which couldn’t be accounted for until the project was underway. Just be sure to have these terms listed in the lease, otherwise, they won’t be valid terms.

Your tenant representative will guide you in the tenant improvement allowance process and go through all of the details with you to ensure that you are making the right choice with regard to this lease term.