You have a startup. You need to enter into negotiations about your office lease for your startup. Let Commercial Property Johannesburg provide you with essential points, when you negotiate a beneficial office lease for your startup. Carry on reading to find out more.
Negotiate A Beneficial Office Lease For Your Startup.
It is essential that you are aware that office space is one of the biggest costs that a growing business experiences. You need to know that your ability to enter into negotiations about an office lease depends on the amount of influence you have. You need to do research. Know if there are other companies that are competing for space. See if the space has been empty for a long time.
You need to consider space. In order to make a comparison of various office spaces, you need to be aware of the precise utilisable square footage of every space you are thinking about. You should know that utilisable square footage is less than square footage that you can rent. This is because it subtracts mutual areas like public corridors, lobbies and bathrooms, from the whole calculation.
Another point to consider is the allowed use of the premises. An office lease usually has a section that sets out the allowed uses of the leased space. It is to your benefit to make this clause as comprehensive as you can, all the more so, if your envisioned goal is primarily narrow. Your business could grow, and your plans could alter. Due to these points, you would like the flexibility to utilise the space in any sensible, legal way.
Here Are More Points For You To Consider.
The term of the lease is an important consideration. You need to know that usually, landlords are inclined to create concessions for longer-term leases. The requirements of your business might alter. You could have to pay above-market rent, if the demand for rentals consequently deteriorates. Attempting to negotiate a shorter-term lease with renewal options is what you need to do.
Another consideration is tenant upgrades. Your new space might require a few upgrades or changes. The majority of form leases stipulate that the tenant is not able to make any changes or upgrades without the consent of the landlord. Asking for a clause that states that you are able to make changes or upgrades with the consent of the landlord, and the consent will not be unjustly withheld, late, or conditioned, is what you need to do.
Think about the assignment and subletting clause. Startup businesses ought to negotiate sufficient flexibility in the assignment and subletting clause, to permit mergers, reorganizations, as well as share ownership alterations.
Another essential point to consider is the option to renew. You should attempt to get the option to renew your rent at a set prearranged price. This will save you money, particularly if the price of office space accelerates radically. You have such beneficial advice about negotiating a beneficial office lease for your startup.