Southcreek News

3 Ways To Cut Office Space in Overland Park Costs

The goal of every prospective tenant is simple: to find the best office space for their budget. In order to achieve this aim, the tenant has to understand what constitutes office space costs and how to handle these costs effectively. Another important aspect of this equation is seeking professional advice throughout the leasing process, which helps tenants – especially those new to the commercial real estate market – to make solidly informed decisions. Here are three factors to consider when trying to understand the bottom-line cost of an office space, as suggested in the article “Office Space, If You Only Do Three Things”:

#1 The Location

One of your top priorities should be to thoroughly search the market for the most cost efficient but visible locations. Remember that location will have an effect on both your rent and the cost of labor. These kinds of costs will vary greatly based on the market or a property owner’s situation. It is important to thoroughly evaluate a marketplace go to make sure that you will be satisfied with the office you choose and to let landlords know that they have competition for your tenancy.

#2 The Lease

The next step in managing costs for your office space is the actual lease transaction. Make sure that all of your objectives are met by the lease and work on negotiating favorable terms with an eye on current market conditions. Sometimes great deals are available in unexpected places with a solid negotiation strategy. In poor markets, landlords often are more willing to offer concession packages or flexible terms to put tenants in their buildings. Look for ways to create leverage and take advantage of market conditions by doing research and considering your timing.

#3 The Layout

Finally, it is important to remember the effects of design and construction on your costs. You want to position yourself to be as in control of these processes as possible. Build out costs and office space efficiency can be major contributors to the cost of an office space. Consider ways that you can do more with less space by taking the time to evaluate the most efficient design for your space and the most cost-effective construction options to save yourself significant costs in the long run.

Professional Expertise

The process of achieving cost efficiency in an office space requires professional help. In the leasing phase a broker or tenant representative can help you identify an ideal space and negotiate a favorable lease. For projects revolving around the design of your space, having an architect or space planner in your corner can help you make decisions about build outs based on space efficiency strategies. During the actual buildout process, working closely with a construction manager can also result in you getting exactly what your business wants for the best price. Consider also the possibility of legal counsel with experience in real estate to help you finalize a lease contract.

Acquiring a good lease for your business takes a lot of time, research, and planning. It is important to identify exactly what your major expenses are going to be and seek the proper guidance to help you manage these expenses. Taking the time to do this legwork before signing a lease can help your business’s finances in the long run.

If you are interested in business space for rent in Overland Park, give us a call at 913-685-4100. We can also help your business calculate square footage needs so that you know the size and kind of space that your business requires. Call us today to set up a tour or talk about how we can help design and office space to meet your business’s needs!

4 Types of Signage for a Kansas City Office Space

Signage is an important question to consider when looking at an office space for lease. Here are a few possible kinds of signage or identity options a landlord might offer to tenants in a multi-tenant property, as suggested in the article “Got Signage?”:

Building Signage – tenants can often get signage somewhere on the side of the building. This can allow multiple tenants of the building to all have signage with anchor tenants higher up on the building and others on other parts of the property, such as the parking garage.
Exclusive Building Signage – this means that a tenant has exclusive rights to put their sign anywhere on the building, typically at the top. Usually this right goes to an anchor tenant or one that leases the most space, possibly multiple floors.
Monument Signage – many office buildings have monument signs with room for multiple tenants listed on them. The monuments could hold just two or three signs, or as much as ten.
Exclusive Monument Signage – in some cases a high paying or anchor tenant might negotiate to have their own monument sign in front of the building featuring only their company.

Be sure to talk to your landlord about your signage options before signing a lease!

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

3 Office Rental Space in Kansas City Design Trends

Both lifestyle and business trends are starting to shape the way commercial property is designed and operates. These changes in commercial real estate mean that prospective tenants have even more options than before. Here are a few trends to look out for as suggested in the article “6 trends in commercial property”:

The pop-up shop. Because consumers have started to do so much shopping online, both retailers and landlords have had to reevaluate their business plans. A new phenomenon called short-burst retail has developed to compensate for these losses. Businesses set up shop just for a month or so before moving, giving consumers a sense of urgency – they feel that they need to shop there before the store disappears.
Open office hubs. In this age of entrepreneurship, micro businesses are springing up all over the country. These businesses are often run by young, creative individuals who thrive in more social office environments. By utilizing an open office hub setup, new business owners or freelance professionals can have access to the amenities of an office space with the culture of a coffee shop. Many spaces are also designed for older professionals on the verge of retirement who do not want to have to travel far to an office. Additionally, some landlords have avoided leasing hubs spaces to single tenants and instead offer individual memberships to the hub, which vary in price based on how often the professional wants to use the space.
Workspaces for travelers. As business becomes more international, both traveling business people and international students looking to also work have started to seek office spaces that afford both the amenities of an apartment and all the equipment and facilities of an office space. These spaces are more than just apartments designed for long stays, as some business travelers are used to. The key to these new spaces is that they can serve as both a living space and an office space for travelers.

If your business is looking to rent a more unconventional office space, consider researching these three trends. You might find that a more communal environment or something conducive to travel or temporary retail could be perfect for your business.

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

5 Facts About Modern Workspaces in Office Suites for Rent in Kansas City

Businesses are starting to think a little more carefully about the layouts and decoration of their workspace. The modern workspace takes into account both the needs of employees and the culture of the company. Here are a few trends in today’s office spaces to consider if you are thinking about redesigning your own space, as described in the article “What will the workspace of the future look like?”:

The cookie cutter approach to office spaces is becoming less and less popular these days in favor of personalized and individualized workspaces based on company identity, values, and culture.
Another main goal of modern workplaces is to support employees, fostering collaboration and furthering the business’s future goals.
Businesses in the last few years have shifted to become a little more informal, offering a variety of different types of spaces so that workers can choose where and how they work best.
Technology has also had a major impact on the design of work spaces. Since technology allows employees to really work anywhere, companies are now trying to create a reason for staff to actually come to a physical location.
Companies are trying to make a space essential to the collaborative and communicative efforts of a business by creating a “sense of place.”

The traditional office space is slowly being set aside in favor of environments that really meet the individual needs of a business and it’s employees.

If your business is looking at office space in Kansas, give a commercial real estate broker in Kansas City a call at 913-685-4100.

3 Indicators That Your Business Needs to Move Out of the Home and Into an Office Rental Space in Kansas City

Moving from the home office to a real office space is a big but positive transition for small business. Consider these three indicators that your small business might be ready to relocate, as outlined in the article “When is it time to move out of the home office?”

#1 You can no longer tell work from home.

Has your office clutter started to take over your entire house? It might be time to move on, even if it is just finding a storage facility or outsourcing your mail. But these could also be indicators that your business is growing and needs more space. You might also find that at the same time your work is literally invading your home life, it might also be invading the mentality of being home. If the lines are becoming blurred between work time and home time, it might do you and your family some good to find a new physical space for your work. On the flip-side, home might be affecting work in the form of distractions. You might find yourself more productive in an office space. The initial expense of the space might be a worthwhile investment for your increase in productivity.

#2 You need to have serious client meetings.

While some businesses thrive in a casual home environment, such as daycares, tutoring or even home spas, it can seem unprofessional for other types of businesses to meet with clients in a home, especially if your home is located far from the business center of the city.

#3 You can’t do it all by yourself any more.

It might be possible to hire a few staff members at home, but things can become crowded quickly when a home becomes an office space and not just a family based business. Consider whether you’re ready to share your kitchen and bathrooms, or what will happen if your kids need to stay home from school. The need to hire staff can be a good sign for a business, so if you expect this growth to continue and doyou think you can budget for a space, it might be a good time to move.

There our variety of office space options available to small business owners, so take your time and look for one that makes the most financial and business sense for you.

If you’re looking for a small office lease in Kansas City, give Kathy Woodward at DDI Commercial a call at 913-685-4100 find out about our available office space.

Shot Term Vs. Long Term Kansas City Office Space Leases

It’s a well-known commercial real estate fact that landlords and agents typically want tenants to sign for a longer lease, but from a tenant’s perspective, short term leases are preferable. However, there are a few disadvantages to this conventional wisdom, as suggested in the article “Negotiating the Renewal Option”:

A short term lease means that the tenant loses negotiation leverage and often receives fewer concessions.
Often landlords are less willing to provide funding for improvements if the tenant only has a short term lease.
Tenant with the short term lease could potentially have to deal with higher rental rates in the future if they have to renegotiate for each renewal term.

Unfortunately, favorable renewal terms often depend on the flexibility of the landlord, which can’t always be counted on. A long-term lease might save the business money over time, but must be weighed against the risks of staying in one space for several years. It is important to spend a lot of time on the topic of these terms and renewals when you’re researching commercial rental space and in your actual lease negotiations.

If your business is interested in Kansas City office space for lease, give a commercial real estate broker in Kansas City call at 913-685-4100.

What is the Difference Between Rentable and Useable Square Feet in a Kansas City Office Space?

Do you ever wonder why it seems that the price listed in a lease seems to be for more space than what you actually get in the office? One of the biggest sources of confusion for potential tenants is the difference between actual office space square footage and square footage listed for rent purposes. Rentable square footage typically incorporates not only the office space itself, but also common areas of the building. Because of this, tenants effectively pay rent for more space than they occupy and they need to be aware of this as they search for commercial space. Here are some clarifications of common misconceptions regarding usable versus rentable square footage, as outlined in the article “Understanding the Common Area Factor: Rentable vs Useable Square Feet:”

Usable Square Footage

Usable square footage is typically defined as the space a tenant actually inhabits. In smaller rental properties, this might simply be the area inside your office suite, which does not take into account entry or exit areas or columns – so the space is measured as if the columns don’t exist. However, janitor closets, restrooms, elevators, lobbies and corridors are factored into the square footage and the tenant is responsible for a certain percentage of the cost of these spaces. Larger spaces that consist of a full floor or multiple floors include everything in this area such as restrooms, mechanical and electrical rooms, etc. These full floor tenants also are responsible for a portion of common area expenses – even ones that aren’t on their floor – such as the main lobby of the building.

Rentable Square Footage

Rentable square footage is every inch of floor space in a property, including restrooms, electrical rooms, and janitor closets. This excludes things like holes in the floor for stairwells and elevators, but every other space is included in the rent. The cost of the rent then consists of the listed rentable square footage multiplied by the lease rate per square foot. There are calculations to help determine rentable square footage for different size tenants. For instance, a less than full floor tenant should multiply usable square footage by the floor common factor, then take this number and multiply it by the common factor of the building. A larger tenant would also multiply usable square footage by the common factor of the building to account for shared spaces and amenities in the building.

The Common Area Factor

Another important piece in this puzzle is the common area factor, which is a number that accounts for the shared spaces on either a single floor or in the whole building. These common areas might either be used by all of the building’s tenants or be pro rata shares that are specific to one tenant suite.

Floor Common Area Factor – this number represents the tenant’s common areas only on their floor. It is different for different properties, but typically it is 8% of the space, meaning the factor is 1.08.
Building Common Area Factor – this consists of all the tenant common areas in the building and determines the rentable square footage number for which a tenant will actually pay. This also ranges from about 6-8%.

Quoted common area factors in a listing are typically a combination of the floor common area factor and the common area factor for the building. Often the total common area factor is is around 12-20% based on the building. In different markets, sometimes these calculations are slightly different, so it is important to clarify with an attorney or an agent exactly what is included in the cost of rent and the listed square footage.

Making Comparisons

When considering your options, keep in mind the different common area factors or even the shape of the space and how it can impact your bottom-line cost. Use a usable square footage metric when comparing buildings just to make sure that you are consistent in the numbers you’re generating for evaluation. Bear in mind that two spaces that have the same rental rate might actually have different values based on the common area factors or even the efficiency of the space’s design.

Address all of these issues before you sign a lease, as there is very little that can be done after a lease is agreed upon. Make sure that your own legal representative verifies that the common area factor number that your landlord provides actually corresponds with the reality of the space. Again, this is one of those tricky parts of leasing and makes it worthwhile to work with an expert to ensure that you’re getting the best deal based on accurate information.

If your business is looking into commercial space for rent in Overland Park, give us a call at 913-685-4100 to find out more about our Overland Park office space for lease and potentially set up a tour.

4 Tips For Creating an Organized and Inspired Office Space in Kansas City

The new year is a great time to reorganize your office. Here are a few tips for keeping your workspace tidy and more pleasant to be in, as suggested in the article “New Year Resolutions – Organized Office & Studio Space”:

Stay on top of the clutter. Don’t wait until you know you’re going to have a visitor to clean your workspace. Try to set aside some time every Friday to clear out old papers, organize your supplies, and put things in their designated places.
Organize electrical cords. There are so many systems and gadgets to keep electrical cords organized and off your desktop. For example, you can feed your cords through a hole in your desktop, plug them into a power strip, label each cord, and keep them all and a basket attached to the underside of your desk.
Find effective and interesting storage options. Storage areas or containers can also fit into your decor. There are so many DIY options for sprucing up old cabinets, shelves, or containers!
Treat yourself to interesting supplies. Perhaps a really nice pen or some personalized stationery really brightens your day. Giving yourself a few of these items might cheer up the ordinary work routine and give you more incentive to keep your supplies organized.

Organizing and personalizing your workspace can have a positive effect on your mood at work! Check sites like Pinterest for lots of easy, affordable, and interesting ideas for your office.

If you would like to learn more about office lease rates in Kansas City, give a commercial real estate broker in Kansas City a call at 913-685-4100.

5 Tips for Beginners Renting Office Space in Kansas

Renting commercial real estate to be a daunting task, especially for those new to the commercial real estate market. However, this process doesn’t have to be so intimidating, especially if you are willing to do a little research and take your time to be thorough about the process. Here are a few tips to keep in mind as you begin to search for the perfect commercial office space, as suggested in the article “A rookies guide to renting a commercial office”:

#1 Location

It is essential to search for space that will be both central and accessible to customers or clients. If you’re located far from them, they’ll be less likely to come in for the kind of informal meetings that build relationships. If you hope to set up a new office that would be a great space to meet with customers, this effort could be thwarted by a poor location. It is also important to keep in mind your staff when choosing a location. Consider proximity to public transportation such as the train or bus line. Easy access will also give you a larger base of applicants to choose from when seeking employees, because if an office is off the beaten track, less people will be likely to apply.

#2 Money

The bottom line question to ask yourself when looking at office space is can I afford it. The main factors that influence price include the quality of the building, it’s location, and its view or natural light. Properties closer to public transportation also tend to have higher rental rates. In addition, a modern building will most likely be more expensive, with the exception of heritage style buildings that have been remodeled, which tend to attract a lot of creative tenants. A building with a view of water might also have a higher price tag.

#3 Size

The size of your space will most likely be influenced by the number of employees you have. The common rule is to plan on 10 square meters per staff member. This number factors in meeting rooms, utilities, and a small reception area. However, remember if you have large break areas, kitchens, or other amenities, this number will most likely increase. Your business might also consider adopting an unconventional workspace layout that would involve different requirements.

#4 Set-up costs

Don’t forget to plan for set-up costs when determining your budget for an office space. Landlords typically require some sort of security deposit for the space, but you might be able to negotiate this number if you can supply financial proof to the landlord that your business is stable. Remember also that you’ll most likely have to pay legal fees as well as insurance. You will also need to be ready to pay the first month’s rent in advance.

#5 Lease Incentives

Often landlords offer incentives to appeal to tenants. These are usually on a case-by-case basis and often are offered to tenants of larger office spaces. Incentives might also depend on the term of your lease, the available space in the building, and your particular type of business.

Renting an office space can be relatively painless with a little research, enough time, and some common sense. Make sure to work with a commercial real estate agent that you truly trust and ask him or her to show you all available options. You can then compare many spaces and make an informed decision.

If your business is interested in office suites for rent in Kansas City, give a commercial real estate broker in Kansas City a call at 913-685-4100 to learn more about our available, affordable space or to set up a tour soon.

2 Factors for Assessing a Commercial Office Space in Kansas City

There are two important components to consider when renting commercial real estate. Most important is the piece of property itself – the location, any necessary improvements, and the state of the buildings. The second is the lease, which encompasses the business side of the deal. Here are a few tips for weighing the pros and cons of each of these considerations, as suggested in the article “How to choose the right commercial property”:

The Property

One thing to consider is the state of the rental buildings. They might be in a very established area and highly trafficked, but if they are older buildings, they might require a lot of improvements and maintenance. Consider also whether the location is suited to your type of business. It might be important for you to be near the city center, but know that the rent will also be higher there than on the fringes of a city. For example, if you receive regular shipments you may want to be near easy highway access, or if you’re in retail you might want a location with a lot of foot traffic.

The Lease

Consider whether the type of lease offered is best for your business at this point in time. For example, a startup business will most likely want a shorter lease with options to renew, but a more stable business might want a longer lease and the benefits it offers. Make sure you understand clearly who is responsible for what costs, including maintenance, taxes, repairs and all of the other expenses associated with a commercial property. If the lease doesn’t make good business sense for your company at this time, it is wise to walk away no matter how much you like the property.

When selecting a commercial property, consider all aspects of the property in the lease. Do not hesitate to ask a lot of questions and negotiate for favorable provisions. Talk extensively with your landlord – through an attorney or commercial real estate agent if possible to get expert advice. You will be stuck with the space for at least a year or a two, so it is extremely important to make sure it’s exactly what you want.

If your business is looking at commercial MLS listings in Kansas City, give us a call at 913-685-4100 to find out more information about our affordable office space in Kansas City or to set up a tour.