When you’re looking for office space, you need to consider factors like location and price. However, that’s not all you need to think about. Commercial leasing can be complicated, and there are many questions that you should ask your agent.
By asking questions upfront, you can be confident you’re choosing the right space for your company.
1. What’s Included in the Rental Price?
When you’re looking for office space, the rental price is a very important consideration. The services that are included in your rent can vary from one office space to another.
To accurately compare the prices of various office spaces, remember to ask what’s included in the rental price. In some offices, costs like utilities, maintenance, and housekeeping are included in the rental price. In other spaces, those costs may be additional fees on top of the rent.
2. Can I Make Modifications to the Office Space?
You’ll probably want to make some changes to a new office space when you move in. The office could be decorated in a generic style that doesn’t suit your company. Or it could have been modified to meet a previous tenant’s needs.
In either case, find out if you’re allowed to make any changes. In some cases, the landlord may not permit any modifications. Other landlords will let you make changes and may even help you pay for them.
3. Does the Lease Have a Renewal Clause?
Commercial leases will typically last between three and 10 years. Once the lease expires, landlords don’t have any legal obligation to let you renew the lease. To ensure you can stay in the same space, ask if your lease has a renewal clause. This clause guarantees your company the space when your lease expires, if you want it.
Sometimes, companies need to provide written notice to renew the lease, while other leases are renewed automatically. Make sure you know which situation applies to the office space you’re interested in.
4. What Happens If the Space Isn’t Ready on Time?
Sometimes, commercial spaces aren’t ready on time. This could happen if the previous tenant doesn’t vacate the premises on time or if the landlord needs to finish repairs.
Before you choose an office space, you need to find out what will happen if this situation occurs. Some leases have a clause that allows the landlord to put you in a temporary office space until your office is ready.
5. Are You Allowed to Sublease?
At some point in the future, you might want to sublease part or all of your office space to another company. If some of your employees start working remotely, you could have empty offices that could be rented out. If your company outgrows the space, you could want to move to a new office and sublet the old one to another company.
It’s essential to find out if you’re actually allowed to do this. In some office spaces, you won’t be allowed to sublet.
6. What Happens If the Landlord Goes Bankrupt?
To avoid an unpleasant surprise later, make sure to ask what will happen to your lease if the landlord goes bankrupt. The lease should have a non-disturbance clause to protect your business. This clause ensures that your lease continues even if the landlord goes bankrupt.
Without this clause, your company could be evicted from the space. This could be very disruptive for your business.