
Just leased another space to a surgeon. Building is now 99% leased. One more space of 1221 sf vacant.
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Rentable area versus usable area can vary from one office building to another. The usable area is the space within your office. The rentable area generally includes a portion or percentage of the common area of the building, which is outside of your office, such as common corridors, restrooms, etc. You pay rent based on the rentable area. If you are looking to rent 3,000 square feet of space, is that what you are getting? The market average for the common area or “load factor” is about 15%. This is one more aspect to consider when evaluating different office buildings.
Landlord’s like Tenants with good credit. If you have a strong financial position, provide this information early. For those that have new businesses or have a weaker financial position, build your case with bank references, vendor and client recommendations, and even personal resumes. In today's tough economy, there are many options for new businesses that most landlords are receptive to.
Begin the process early. This provides you with negotiating leverage. Depending on the complexity of your requirement, start at least 9-12 months prior to your lease ending date. Researching the alternatives can take 3 months, negotiating a lease can take 2 months, and constructing new improvements at another location can take 3 months. Also, allow additional time for unexpected delays in the leasing process.
Commercial leases usually have a holdover provision, which is the time period after which your lease expires and you remain in the space on a month-to-month basis. The standard lease holdover rate is typically two times your current rent. Try to negotiate a rate at your current rent or a slight percentage increase only.
Lucky 13 was good to me...just completed 2 medical leases today... 2000 Van Ness Avenue - Cardiologist Daniel Burnham Court - Orthopedic Surgeon |