Southcreek News

5 Questions You Should Address in Your Office Space Lease in Overland Park Negotiations

An office space is always going to be one of your business’s biggest expenses, so it is in your best interest to negotiate the most favorable least possible. While leases do vary, there are a few common points of discussion that come up in most lease negotiations. Before you sign a lease, here are a few questions to raise with the landlord, as suggested in the article “How to Negotiate a Better Commercial Lease”:

#1 How long is the lease and what is the rental rate?

Remember that landlords usually offer better terms for tenants who agree to longer leases. However, this is not in your best interest as a tenant, because you want to be able to renegotiate the lease or leave if you need to. A good way to meet in the middle is to try to negotiate for a two year lease with several options for renewal.

Try to limit the rent increases for later renewal terms to small amounts based on inflation or the cost of living, rather than on “fair market” price—this price does not take into consideration your years as a stable and loyal tenant. Be cautious with incentives the landlord offers upfront, because this most likely means that you will somehow have to pay more later. Agreeing to base rent increases on the Consumer Price Index (CPI) is one way to protect yourself from unfair or unexpected escalations.

#2 Are there any limitations how how you can use the space?

One thing to distinguish early on is exactly how much of this space you can actually use, since usable square footage is different and notably smaller than rentable square footage. Additionally, leases often include a list of the activities the landlord allows in the space. You might not think much of this if your business only has a single purpose at the moment, but it is to your benefit to request “all illegal uses” in your lease in case you want to expand to other activities as new opportunities arise.

#3 What extra costs are included in your lease?

Just because the rental rate is low does not mean you won’t end up paying a significant amount of money each month. Be aware that your lease could hold you responsible for other costs, including security, utilities, maintenance, repairs, and a variety of other services. The best way to handle this is to try to negotiate caps on the amount you have to pay for any of these extras. Another expense you should address is the cost of making any improvements to the space. Talk to your landlord about what you have permission to do and how the cost of this work will be divided between you.

#4 Do you have first rights to another space in the property?

This can be useful if you have an eye on a better spot in the building or think you might need additional space someday. “First refusal” or “First offer” rights mean that the landlord has to offer you a space and give you the opportunity to accept or reject it before opening it up to a new tenant.

#5 What happens if you need to share the space?

Talk to your landlord about assignment for subleasing options in the event that your business is not doing as well as you hoped and needs to rent out some of your space to another tenant to stay profitable. Make sure you clearly spell out with your landlord what their policy is in regards to subleasing or sharing a space. Be careful of very strict leases that treat a change in leadership in your company or even additional investors as assigning or subleasing the office space.

While you might not get everything you want in a lease, it is important to at least address these issues and consider looking at other spaces if a landlord is particularly inflexible.

If your business is interested in executive office rental in Overland Park, give Kathy Woodward at DDI Commercial a call at 913-685-4100 to learn more about our available spaces.

Choosing a Location for Your Office Space in Kansas City

Choosing a suitable location is a critical component of setting up your small business in its first official office space. Your location has a major impact on your business, so it is important to carefully consider several factors and work with a commercial real estate agent who knows the area when you are choosing an office space. Here are a few suggestions for points to think about when deciding on an office rental property, as suggested in the article “How to Find & Lease Office Space”:

#1 Choose a location based on your needs.

If you are a legal firm, for example, and you know that you will be regularly visiting the city’s courthouse, finding a space near the courthouse could be a huge time saver for you. Think about what your business needs and the places you will need access to—you might get lucky and find a great space in a convenient area.

#2 Consider the commute.

Think about the employees you have or the workforce you want to draw from when you choose your location. It is important to find a location that is relatively close to them if you want to satisfy and keep those employees. Sometimes it is impossible to please everybody, but if you have a more central or convenient option, this might be a big bonus for both your employees and your clients/customers. Another thing to think about is whether the space is near a major highway or public transportation. Whether highways or public transport is more of a priority depends on your kind of business, the accessibility of public transport in your city, and the availability of parking spaces.

#3 Locate in a good environment.

Another thing to consider is whether the businesses in the area are compatible with your business. Some good things to have nearby are restaurants, cafes, or fitness centers where your employees can get away for a little while during lunch. Proximity to these kinds of businesses means that your employees won’t feel rushed and stressed during their lunch breaks.

Location is hugely important to small businesses, not only for attracting clients, but also for taking care of your business’s and employees’ needs.

If your business is looking into commercial space for lease in Kansas City, give us a call at 913-685-4100 to learn more about our affordable office space in Kansas City, located in the heart of Johnson County and surrounded by all of the resources the area has to offer: restaurants, coffee shops, health clubs, and more!

3 Tips for Being a Great Boss in a Kansas City Office Space

Developing a great team of employees requires a good leader at the helm of the business. Here are a few ways you can become the kind of boss challenges your employees to rise to the next level, as discussed in the article “4 Things Great Bosses Do”:

#1 Respect Your Employees Time

Part of empowering your employees to succeed involves giving them the time, space, and tools to do their jobs well. One element of this means running meetings that are efficient and valuable. Employees know when you are wasting their time, so make sure that when you call people away from their work for a meeting, the information is going to be useful and delivered in an effective way.

#2 Solicit and Acknowledge Feedback

Regularly get feedback from your employees about your leadership style and how you can better help them. Take this as an opportunity to listen, not argue, and try to do one thing that demonstrates that you heard and considered the employees’ feedback. Your team will appreciate seeing that you really do care about what they have to say.

#3 Be the Inspiration

“Lead by example” is a great adage to follow. Be the kind of worker you want to see in your office, and your employees will see your hard work and hopefully follow your lead.

A great team of employees starts with a great boss!

If your business is interested in office space in Kansas, give us a call at 913-685-4100 to learn more about our Kansas City office space for lease!

3 Tips for Outsourcing to Local Businesses Near Your Overland Park Office Space

As a small business owner, you’re responsible for keeping a lot of plates spinning at once. This can often mean that you and your employees are doing double duty on a variety of jobs. While it is good to keep costs down, sometimes outsourcing tasks is better for your business in the long run because then people can focus on their areas of expertise without getting bogged down by extra work. Here are some tips for partnering with local businesses to outsource some of your needs, as outlined in the article “A Match Made In Heaven: Tips for Partnering With Local Businesses”:

#1 Establish Goals and Expectations

The first thing to do when working with a local service provider or vendor is to make sure that everyone is on the same page and that your goals and vision are clear. Lay out all of the details of the project or projects ahead of time, including things like overall budget, deadlines, and any other expectations. Make sure all of this is understood by both parties before starting any projects.

#2 Deal with Conflict Effectively

There are bound to be a few disagreements in the course of your relationship with this business, but if you want to form a lasting partnership is important to be mature and effective in your handling of conflicts. Address any problems as soon as they arise, rather than letting things compounds and worsen overtime. Create an environment of openness and communication, making sure that the partner knows that they are also free to approach you with issues as necessary.

#3 Check for Cultural Compatibility

It is also important to understand the culture of the business you’re partnering with and how it differs from your own business’s culture. Your relationship my depends on making sure that these cultures mesh. Do they work unusual hours? Are they easy-going? Do they preferred phone or e-mail communication? Getting a grasp of all of these aspects of a business’s culture well help you anticipate what working with them will be like.

Remember that good relationships are built over time, so be selective, but also be patient. It might seem like a big step to entrust another business with some of your work and to pay to outsource, but doing so could be very beneficial for your growing business in the long run.

If your business is looking for office space in Overland Park, KS, give a commercial real estate broker in Overland Park a call at 913-685-4100.

4 Things to Consider When Hiring Recent Grads at Your Office Space in Kansas

This time of year, plenty of recent college graduates will be on the hunt for jobs. Here are a few things for your small business to consider as you look for potential employees in this group, as suggested in the article “Handling Job-Hungry College Students: 3 Key Factors to Know When Hiring”:

#1 Be Careful of the GPA

Of course big gaps in GPAs can be indicators of candidates’ levels of qualification, but it is important not to over-rely on this measurement. Consider other areas in which the student might have excelled or other qualities that make them fit for this position.

#2 The Importance of the Interview

If possible, try to conduct multiple rounds of interviews with recent graduates. Consider starting with a group, then inviting back a few of these individuals for another round, with each interview becoming increasingly focused on the specifics of the job until you narrow it down to a few great candidates.

#3 Find Your Own References

Know that references from candidates are probably going to be biased, so do a little research and see if you can find some other people that could provide a more unbiased opinion, for example a college professor whose class they attended.

#4 Look for Passion

Remember that though resumes are important, so is the enthusiasm the candidate shows for the position. Be open to individuals who are really passionate about the work you’re doing and how they can contribute.

Try to do the little extra work and research when looking at recent college grads, and hopefully you will be able to discover loyal new employees who will make good contributions to your business.

If your business is interested in business space for rent in Overland Park, give a commercial real estate broker in Overland Park a call at 913-685-4100 to set up a tour of one of our spaces!

4 Tips for Rocking Negotiations for an Office Space Lease in Overland Park

Negotiating a commercial lease can be a long and daunting task, but that doesn’t mean you can’t come out of that process with a really great deal. Here’s some tips for being a strong lease negotiator, as suggested in the article “How to Get a Good Deal on a Lease”:

#1 Negotiate the Term of Your Lease and Rental Rate

One of the first things you’ll do is negotiate with your landlord the duration of the lease and how much you will pay, typically based on the square footage of the space. Conventional wisdom suggests that small businesses should play it safe with short-term leases, for example a year or two with the option to renew, but often landlords are willing to make substantial concessions, for example free rent for a period of time, for tenants willing to stay for a longer period, i.e. five years. This is something to factor into your decision-making process. Another thing to do before deciding on your rental rate is to remeasure the space. Sometimes the listed square footage is based on an old floor plan or has been reconfigured so many times that the square footage has changed.

#2 Expenses and Maintenance

The next thing to negotiate is all of the extras you will have to pay for in your space. A lot of this is based on the type of lease that you have, but typically most expenses get passed onto tenants in some form or another. The most common expense is common area maintenance (CAM) costs, as well as utilities. Be aware that landlords will also try to hold you responsible for bigger costs, such as repairs and maintenance, for example of the walls, the roof, and parking areas, and the heating and cooling systems. Be aware of this, especially in older buildings. It might be worth having the heating and cooling system, the plumbing, and the electrical system inspected to look for any obvious problems, which you can then bring up to the landlord as points of negotiation.

#3 Choose a Broker Carefully

Make sure that the broker you’re working with is really working for you. Be aware that a lot of brokers work for landlords and are paid on commission. One reliable source of recommendation is a good real estate lawyer, who can recommend someone who will work with you in good faith. You also want to make sure you’re working with a broker that understands your market, for example the office space market or the retail market. Ultimately, working with broker is very important for small businesses, and trying to negotiate a lease alone won’t necessarily save you money. Utilize your broker in negotiations, but remember that it is also up to you to stay abreast of and verify all of the points they are helping you negotiate.

#4 Have an Escape Planned

Is important to negotiate the details of terminating the lease upfront, even if you hope that never has to happen. There’re a few parts of the lease that can protect you in the event that things don’t go as planned:

“Good-Guy” Clauses – most landlords will insist on a personal guarantee, but a good-guy clause in a lease means that you’re only responsible for rent owed before you leave a space if you terminate the lease early, rather than paying rent until the end of the lease term. These clauses are not very widespread, but it is worth asking about.
Personal Guaranty Release – you might not be able to get a good-guy clause, but a lot of landlords might agree to release you from a personal guarantee after certain period of time, rather than paying rent until the lease ends.
Sublease – this provision allows you to sublease a portion of your space to another business, which could be useful if you end up with space you don’t need and costs that are too high.

A few other provisions hold the landlord responsible for meeting certain standards in order for your lease to be valid:

Exclusivity Clause – this clause prevents the landlord from leasing another space in the property to a direct competitor of yours.
Co-tenancy – A lot of smaller businesses, especially in retail spaces, rely on anchor tenants to draw in a lot of customer traffic. The co-tenancy clause allows attendants to break their lease without penalty in the event that this anchor tenant leaves and is not replaced by the landlord within a specified period of time.
Guaranteed Points – A lot of times landlords advertise the space as having a few guaranteed selling points, such as a certain amount of customer traffic or certain percentage of occupancy. If you can, try to get these things in writing with concessions guaranteed to you in the event that the property fails to meet the standards.

Keep these points in mind as you prepare to negotiate a commercial real estate lease!

If your business is interested in Overland Park office space for lease, give us a call at 913-685-4100 to learn more about our affordable office space in Overland Park.

3 Questions To Ask Yourself Before Looking for Commercial Realty in Kansas City

When you run your own small business, you will eventually be faced with the task of finding commercial space for rent. Regardless of what city you operate your business from, there are a few common questions to ask yourself as you evaluate your professional needs and what an ideal space looks like for your business. Here are a few questions to consider as you start this process, as suggested in the article “The Secret of Looking for Commercial Office Space”:

What kind of space do I need? First consider the general question of what kind of space your business needs. Do you need an office suite, or is it important for you to have a storefront? This will be the first step in narrowing down what you’re looking for.
How much money can I spend on a space? Next it is important to determine your budget. Not only will this prevent you from wasting time looking at spaces you can’t afford, but it will also ensure that you don’t get too attached to a space before realizing that it is out of your price range.
What extras do I need? Is it important that this space has foot traffic? Do you know that you need a conference room, or at least two private offices? Make sure to determine the things that your business absolutely needs, so that you can work with a commercial real estate agent who can weed out unsuitable options based on your preferences. Obviously it is important to be flexible on somethings, but know the bottom line necessities your business can’t do without.

Consider these questions as you begin the search for an office space!

If your business is looking for Kansas City office space for rent, give a commercial real estate broker in Kansas City a call at 913-685-4100 to learn more about our available space!

Evaluating Your Employees in Your Office Rental Space in Kansas City

As a small business owner, it is important for you to know how each and every one of your employees is contributing to your business, whether they’re being productive and fulfilling expectations and goals. In order to have an accurate measurement of this, it is necessary to evaluate employees regularly throughout the year, even if you only meet with them for a performance review once a year. Here are a few factors to consider as you observe employees throughout the year, as suggested in the article “Keeping Tabs on Employee Performance: 5 Key Factors to Measure”:

#1 Adherence to Expectations

An obvious thing to measure is whether employees are adhering to the terms laid out in their contract. Do they respect company policies? Deviations from various obligations might suggest that employees aren’t performing at the level your business needs.

#2 Work Quality

Another thing to consider is the quality of the work the employee is producing, whether this is in sales, marketing, or in some other department. Do they produce quality work efficiently? Or are several rounds of revisions necessary? This can be a good indicator of an employee’s overall performance.

#3 Self-presentation and Habits

Does the employee follow the dress code, or do you need to consistently have conversations with them about what is work appropriate? Does the employee have some bad habits, such as using computers for social networking, taking excessively long breaks, gossiping, or having regular or petty conflicts with other coworkers? Be clear up front about with the rules and expectations are, then check to see if the employee respects these expectations.

#4 Consistant Punctuality

One simple thing to consider is whether or not an employee shows up on time for work each day. If they consistently come to the office late, take an excessive number of personal days, or just generally do not contribute their share of the work, this could have a damaging effect on the entire office by over-straining other employees.

It is important to create a supportive and positive environment for your employees, but any business also needs a certain amount of accountability for it to function at its full potential. Make sure that your business is at the level it should be by regularly tracking employees’ performance.

If your business is interested in commercial space for lease in Kansas City, give a commercial real estate broker in Kansas City a call at 913-685-4100 to find out more about our available and affordable spaces!

4 Ways to Improve Your Small Business’s Customer Service At Your Office Space in Overland Park, KS

Small businesses trying to build their reputations really need to develop a strong customer service policy to increase referrals and get positive customer reviews. Here are a few simple tips for improving your communication with customers or clients, as outlined in the article “5 Ways Small Businesses Can Boost Their Customer Service”:

1. Quick Turnaround Time

Nothing demonstrates that you are concerned about your customer our clients’ problems more then a quick response, especially if their issue is time-sensitive. Sometimes you might not be able to solve the problem quickly, but even contacting them to let them know that you are working on it and when you hope to have a solution will most likely make them feel pacified and increase their confidence in you.

2. Take Responsibility

If your business made a mistake or something didn’t come out as you planned, be direct and open with the customer, and work quickly to try and fix your mistake or else offer the client an alternative idea or solution. This seems like an obvious strategy, but many businesses make the mistake of ignoring or deflecting their failings, and they pay for it in a poor customer service reputation.

3. Add A Personal Touch

The benefit of being a small business is that you have a closer relationship with a smaller number of clients. Avoid any sort of customer service scripts, and instead remember your clients’ names, and regularly thank them for their business. When responding to their problems, clearly tell them how you will address the problem, when they can expect the resolution, and how much you value their business, well as what in particular you have enjoyed about working with them. Be sure to end these conversations by checking to make sure that you have addressed all of their possible concerns.

4. Go Above and Beyond

It’s important as a small business to go out of your way to make your clients feel valued and to show that you were working hard for them. Really listen to your clients when they have an issue, and let them know that their problems are a priority by consistently communicating with them to let them know what your plan is and give them regular updates. In addition to dealing with regular problems, try to occasionally do a little extra for clients to make sure that they’re satisfied with what you’re doing.

Focusing on good customer service and communication skills is a great way to begin building your reputation as a small business!

If you are looking for a small office lease in Kansas City, give a commercial real estate broker in Kansas City a call at 913-685-4100 for more information about our available space.

5 Lease Renewal Strategies for Your Overland Park Office Space

Lease negotiation is something that should be taken seriously by businesses, especially considering that real estate can be the second most expensive cost for businesses. Particularly when thinking about negotiating a renewal for your lease, be wary of the ways that the market can drive up your rent or an aggressive landlord can push for unfavorable terms for your business. Don’t be hasty to sign an agreement; make sure you really understand what you’re getting yourself into, especially in a long-term lease. Often tenants end up at a disadvantage because they find it an administrative hassle to take care of the lease negotiation, but they also want to avoid the time and expense involved in relocating. Here are a few tips for you as a tenant to educate yourself before entering renewal negotiations with a landlord, as suggested in the article “Five secrets for successfully negotiating a commercial or retail lease”:

#1 Don’t fall victim to bullying.

Landlords often try to strong-arm their way into more favorable terms for themselves by approaching tenants early and proposing a lower rate if the tenant doesn’t use a broker. Even though hiring an experienced broker might be an expense for your business, it could save you a lot of money in the long run because they have the expertise to help you negotiate a more favorable lease for your business.

#2 Consider the costs the landlord.

If you as a tenant are thinking about relocating, consider that it’s not only a financial burden for you but also for the landlord, which gives you some leverage. Landlords have to pay construction costs, potentially retrofit the space, and spend a lot of time and therefore money preparing, marketing, and negotiating a new space. On top of that, commercial space does not normally yield a profit for the landlord until nine months after the previous tenant leaves. You as a tenant need to be aware that the landlord is just as anxious as you, if not more, about the money, time, and risks associated with you vacating the space.

#3 Do your research.

Even if you know you don’t want to relocate, It is still important to research the cost of relocation opportunities to both give you some leverage and help you reevaluate your space needs.

#4 Think about the bottom-line costs.

If you’re starting to feel like renegotiation is a hassle, take a moment to calculate what a poorly negotiated lease could cost you over the course of 5 or 10 years. In addition to thinking about your overall rental rate, also think about other factors, such as expansion options, landlord responsibilities, taxes, and operating expenses. These kinds of things can really hurt a tenant, especially if you’re not used to dealing with leases and unprepared to work for favorable terms.

#5 Start early.

Conducting all this research and negotiating effectively is a long process, one that you should aim to finalize at least six months before your lease expires, which means it’s worth thinking about around two years before the end date of your lease term. Additionally, taking charge and being proactive shows your landlord that you are seriously committed to finding the best deal for your business and you’re not willing to simply accept the terms they offer.

If your business is approaching the point where you need to start seriously thinking about relocating or renegotiating, consider a few of these tips to give you an upper hand in the negotiation process.

If you are interested in business space for rent in Overland Park, give us a call at 913-685-4100 to find out more about our office space in Overland Park, KS, or to even set up a tour.