Consider this before signing a commercial lease

Your company has decided to go in a different direction and is planning an office move. As project manager, you and your management team have been researching surrounding areas for commercial real estate in the best locations, where you know that your business has the potential to grow, and where you can create the perfect office space. With an ideal commercial real estate location or building design in mind, the company is ready to go ahead and secure a commercial lease, but before doing so, there are several crucial aspects of the commercial lease you need to consider in your office move plan:

What are the Office Space Needs of the Company?

First and foremost, it’s important to think about what the company will require at its new office space. Whether the office move will downsize or expand the business, certain office space requirements will change from what is currently in place. A critical office space first step is setting up an appointment with the management  team as well as an architect, designer, or space planner to discuss the commercial real estate needs and how that will be incorporated into the blueprint. Think about how many employees will be relocating to the new company, the day-to-day activities that will be carried out, and possible additions that can be made in the new office space. This in turn will lead to discussions about office products, technical issues along the way and interior design needs. The ultimate goal of meeting with a space planner is to have a clear idea of what the new commercial real estate should look like and what you need to do to prepare for the new space.

Consider Expansion Needs 

With an office move there is always great potential for growth. Before going ahead and signing the commercial lease, consider the changes that the company is planning to make. Will the new commercial real estate be suitable for those changes?  For instance, you may be thinking about expanding the office space by building an addition; make sure that this is a viable option with the commercial real estate landlord before you sign a binding agreement. Moreover, where do you see the company in five years? Don’t think only about the office space, but also take a good look at the area you’ll be relocating to. Is it an area in which the business will be able to grow? A mistake in picking real estate can lead to the downfall of an entire business.

Determine Improvements Needed  

Often discussed during an office move, are the chances for improving the company and the commercial real estate itself. This can be anything that ranges from lighting, to central air installation, to re-designing the outside space for curb appeal. Determine what you need in the new office that you don’t already have in the current one and discuss improvements that can be made to existing problems. You may be thinking about installing a new security system over the current one provided or altering the electrical wiring to support the company’s IT system. If you are planning on expanding the commercial space to accommodate more employees or a growing business, it’s essential that the planning for expansion begin immediately.

Additional Considerations 

When leasing commercial real estate, you must think about the new space and the benefits it can bring to your company, but you also need to consider the many employees and current customers that will be making this office move with you. Think about how efficiently employees will be able to do their jobs during the move and how they can easily transition to the new commercial real estate. Commuting to and from work, parking space, and safety in the new community are crucial considerations. Also think about how far you will be from business associates and customers. Once in your new commercial real estate location, will it be feasible and financially sound to continue those business relationships?

Important commercial lease questions will deal with rates, monthly rent charges, taxes and insurance. It’s especially critical that before signing the commercial lease, both the owner and management team meet to discuss the financial needs required for the move. A mistake can be just as simple as not taking the time to thoroughly read through the commercial lease agreement, even after it has been reviewed with the commercial real estate landlord or the broker. Important factors that pertain to the new commercial location can be easily overlooked, leading to even bigger problems in the long run.

Leave no stone unturned. Relocating is the time to start anew, and as the first step, finding the perfect commercial real estate location should be top priority.