Finding a new office space for lease can be tedious and time-consuming, especially in today’s market. Justin Harris, Senior Associate, at Cawley Chicago provides four insightful tips for when it is time to look for office real estate.
1. Hire a Knowledgeable Market Expert
Landlords typically have a broker on their side to lease vacant space and look out for their best interests. You should also have a broker on your side that is a market expert and is looking out for you as the tenant. Landlords pay commissions for both the landlord’s broker and the tenant’s broker so having a market expert on your side is an invaluable resource and at no cost to you. Having a broker on your team during searching for new office space gives you someone that knows the availability in the market, off-market availability, and space that is coming available soon. Brokers also have a team of professionals behind them such as architects, contractors, attorneys, IT companies, furniture vendors, and more that they can bring to the table to make your move as smooth as possible.
2. Get to Know Your Landlord
There are many different types of landlords in the market, from one-off owners of buildings to large commercial investment companies. There are positives and negatives to different kinds of landlords and you can find good and bad landlords of all varieties. The type of landlord you choose can greatly affect the experience you have as a tenant in the building. Market experts know the different landlords in the market and having one on your side can help you navigate different landlords’ reputations in the market and help find the best one for you.
3. Understand Your Lease Structure
Leases can be structured a number of different ways from Gross to Modified Gross to Net. This along with other clauses in the lease determine what you actually pay in rent along with other miscellaneous costs that can arise such as repairs and maintenance. Having a market expert on your side that can explain the different lease structures and how they can affect your bottom line is extremely important.
4. Understand Market Concessions
From free rent, to moving allowances, tenant improvement allowances, lower rental rates, and more, there are numerous different types of concessions that landlords can offer to entice new tenants. It is important to understand the different concessions that are offered in the market because most of the time the lowest rental rate will not actually get you the best deal throughout the term of your lease. Having a market expert on your side can help you understand the different concessions available and help you structure the deal that best fits you and your business.
Looking for a Market Expert in the Chicagoland area?
As Cawley Chicago provided four insightful tips for when it is time to look for office real estate, if you are looking for office real estate experts in the Chicagoland area and need assistance, please feel free to contact us. Our highly skilled and experienced experts will help you along this process and can answer any questions you may have.