This week, we begin our series on office leasing.
Leasing office space is a huge financial commitment. Having a buyer’s agent or tenant representative on your side can provide the expertise you need to find the ideal property and negotiate the best possible price.
This series will include information about several misunderstood lease clauses, ten things you need to know before you sign a lease, and tips for renewing or renegotiating your lease.
Here are the three things I hope you take away from this series:
1) Know what you are paying for. A Net Lease is a lease in which there is a provision for the tenant to pay, in addition to rent, certain costs associated with the operation of the property. These costs may include property taxes, insurance, repairs, utilities, and maintenance. There are also “NN” (double net) and “NNN” (triple net) leases. The difference between the three is the degree to which the tenant is responsible for operating costs.
2) Know how much space you are renting. A Net Rentable Area is the floor area of a building that remains after the square footage represented by vertical penetrations, such as elevator shafts, etc., has been deducted. Common areas and mechanical rooms are included and there are no deductions made for necessary columns and projections of the building.
3) Know your rights including: renewal, termination, reduction, and expansion and purchase rights.
Stayed tuned for new information related to office leasing! You can also “like” our Facebook fan page, and connect with Mike on LinkedIn.