Southcreek News

Selecting the Best Location for Your Office Space in Kansas

Location can be so crucial to the success of any business, so it is important to make this factor a top priority when searching for commercial real estate properties. Here are a few tips for how to approach the issue of location, as suggested in the article “Location and Leasing”:

Zoning

It is so important to understand the zoning laws in an area, because this can determine whether or not you can operate your business there at all. Not only do you want to look up zoning laws for an area, but you need to also be prepared to work with a city planning department and other municipal departments who will ultimately approve or disprove your business’s plans for a location. Sometimes you might even be required to present a “precise plan” to make sure that you are meeting regulations that go even beyond regular zoning laws to include things such as environmental issues.

Know Your Business

Different businesses have different criteria for what constitutes an ideal space. For instance, warehousing, manufacturing, or industrial businesses might need to focus on things like availability of a labor force, proper utilities, and delivery system convenience. On the other hand, a retail space might be more interested in foot traffic.

Where to Start

In this day and age, the internet is a great resource for narrowing down available and suitable spaces in an area. You might also consider working with an agent who knows the area particularly well.

Do your research and planning to make sure that your location fosters the success of your business!

If you are interested in office suites for rent in Kansas City, give a commercial real estate broker in Kansas City a call at 913-685-4100!

13 Overland Park Office Space Lease Facts To Know Before Negotiations

If you are new to the renting commercial real estate process, there are some terms and ideas that you should familiarize yourself with before you dive in. Understanding these leasing details, described in the article “Commercial Real Estate: What You Need to Know Before Leasing,” will help you enter negotiations with a little more confidence:

Gross Lease. This is the most simple type of lease to understand, as all of your expenses are bundled up in the price per square foot.
Net Lease. In a net lease, you pay for both price per square foot and for a specified amount of other property expenses. A double net lease includes insurance and taxes, while a triple net lease includes insurance, taxes, and maintenance.
Percentage Lease. This type of lease is most common in retail spaces and requires you to pay base rent for square footage plus a certain percentage of your sales.
Lease Length. Most tenants want a short term lease plus options to renew. This option allows you flexibility if you outgrow a space, but it also gives you the option of sticking with a space that is working well for you. However, keep in mind that landlords prefer longer leases, so a longer lease term might give you more negotiating leverage for something else.
Other Expenses. Commercial leases are not like residential leases; in commercial leases the landlord is not necessarily responsible for property maintenance and fixing things like HVAC systems, for example. Make sure that you clarify in the lease who is responsible for what costs.
Rent increases. Landlords will typically try to charge you annual rent increases, also called escalations, which are based on the consumer price index or a similar calculation. Be sure that you fully understand and are prepared to deal with these increases before entering the lease.
Signage. If your business requires signs, make sure you discuss any regulations for posting signs.
Subleasing. You as a tenant will want to push for the option to sublease your space if necessary. This offers you a bit of a safety net if you cannot pay rent or need to move to a different space.
Build Outs. If you are planning on altering a space you need to talk to your landlord about what is allowed and who is paying for improvements. Sometimes if you sign for a longer lease term a landlord might be more inclined to help with the cost of build outs. Remember also that if you cannot use a space while it is being altered, you want to try to avoid being held responsible for rent during that time.
Exclusive Use. An Exclusive Use clause prevents a landlord from leasing a nearby space to one of your business’s competitors, which might be especially important if you rely on foot traffic.
Co-Tenancy. Sometimes properties have “anchor” tenants that other tenants depend on for foot traffic. If this is the case for the property you are considering, you might want to consider a co-tenancy clause, which gives you the freedom to end your lease if that tenant leaves.
Assignability. If you need to sell your business, you will want to make sure your lease allows you to pass the lease along to the new ownership.
Exit Plan. In the event that you absolutely have to break your lease, you will want to have negotiated for minimal penalties, such as only 2 or 3 months worth of termination fees.

Do research ahead of time to make sure that there are no surprises during your negotiations or later in your lease!

If you are interested in an Overland Park office space for lease, give a commercial real estate broker in Overland Park a call at 913-685-4100!

The Do’s and Don’ts of Renting Commercial Realty in Kansas City

Renting commercial real estate can have a big impact on a business—for better or worse. A good lease can help your small business grow and flourish in a great location, but a bad one could potentially cost your business a lot of money and can be especially risky for small businesses. Here are a few things to do when renting a space, as well as a few things to avoid, as suggested in the article “Location and Leasing“:

DO:

Look at multiple properties so be able to compare rent, location, and other variables.
Research demographic data for an area to get an idea of your potential customer base.
Make a Site Model Criteria for your specific business.
Utilize the assistance of a commercial real estate attorney to help with negotiations or purchasing.
Talk to the planning and zoning departments of a city to make sure that you are in compliance with all code requirements.
Negotiate for a short term lease with renewal options to minimize risks.
Put everything in writing
Negotiate for no competitors to be allowed to rent in the same building as you.
Use the largest signs allowed and make sure they clearly state what your business offers.
Include terms in your lease that address the possibility of expanding.

DON’T:

Evaluate a location solely on rent.
Allow your landlord to determine all of the terms.
Be too quick to settle on a location.
Depend on verbal agreements during negotiations.
Agree to a lease without making sure you have read and understand every single term.
Personally guarantee a lease if you can avoid it.
Submit to conditions that are bad for your business – move on to looking at another space.
Sign a lease without consulting your lawyer.
Depend only on your landlord’s leasing agent for advice.
Close negotiations without making it clear that the lease is still subject to securing any licenses and permits.

Renting a commercial space requires careful planning, research, and attention to detail during negotiations. Be a smart negotiator and don’t let your business get stuck with a lease that will hurt you financially in the long run!

If your business is interested in finding commercial space for lease in Kansas City, give us a call at 913-685-4100 to learn more about one of our office suites for rent in Kansas City or to set up a tour!

Factors for a Small Business to Consider When Trying to Calculate Square Footage

When looking for an office space, it is crucial to consider the growth of your business and whether a smaller or bigger space would be the best fit for you at this point. In order to make this decision, it is important to consider the pros and cons of big versus small spaces. Here are a few factors to consider if you are thinking of going small, particularly if you are a new business, as suggested in the article “How to Think About Your Square Footage Needs”:

Smaller office costs – The benefit of getting a smaller office is obvious—less cost. If a new business owner has to close their doors, they will not be hurt as bad financially as if they had pursued a larger, more expensive space.
Space needs – If you are a newer, smaller business, you might just need less space to accommodate a smaller amount of equipment and a lighter staff.
Lease length – While it is wise to start small, many small business owners also like to start with a short term lease, such as only one or two years, which allows for the possibility of moving or expanding if your business grows within the next few years.
Pitfalls – There is always the possibility that your business grows quickly and becomes too large for your space. Often landlords also charge a slightly higher cost per square foot for shorter term leases in order to compensate for the cost to them of having to find a new tenant after a short period of time.

If you are thinking of renting a small space, make sure you know all of the pros and cons of that option!

If you are interested in office space in Kansas, give a commercial real estate broker in Overland Park a call at 913-685-4100!

5 Tips for Protecting Yourself if You Need to Break Your Kansas City Office Space Lease

Even if you are predicting nothing but sunny skies and steady growth for your business in the coming years, sometimes factors outside of your control can unexpectedly affect your business. Because leases are a sizable investment of your time and money, signing a lease always carries a risk in the event that you might have to end it early because of bankruptcy, being bought out, or forced to relocate for some other reason—a worst case lease breaking scenario.

On the other hand, a lease could begin to hurt your business because of the unforeseen success and growth you are experiencing. A best case lease breaking scenario would be needing to move because your business has outgrown the space.

Here are some tips for putting your business in the best possible position in the event of having to break your lease for any reason, as explained in the article “How to prepare your business for the best and worst cases in a lease”:

Subletting or Assignment Clauses. Try to negotiate for the right to either sublet some or all of your space to another tenant, or assign the lease altogether to a different party. This can majorly alleviate the financial troubles you might run into by ending a lease—for instance, if your business needs to relocate to a different space.
Personal Guarantees. Pay particular attention to this part of a lease, because it is not favorable to you as a tenant, though you can often negotiate to get it to a more reasonable point. A personal guarantee makes you as a business owner personally responsible for lease payments in the event that your business breaks the lease. For instance, if you have a five year lease and you break it after two years, you will have to pay the last three years of rent from your personal savings. Read the fine print on your personal guarantee to find out what you are responsible for. Landlords typically ask for a guarantee if they are making a lot of adjustments to a space for your business, so see if you can only be held responsible for improvements that specifically will be used by your business, or ask if the amount you might have to pay could decrease as you get closer to the end date of the lease.
Disability or Death Clause. This clause calls for the termination of a lease if the business owner becomes disabled or dies. This might be important if you are a very small business, such as a law firm with just one lawyer and a receptionist.
First Refusal Rights. This clause means that a landlord has to offer spaces adjacent to your offices to you first before seeking other tenants. This could be good for your business if you need to expand because you will save time and money that would be spent on moving. However, there is usually a small window of time for you to take advantage of these offers, and often you have to either match or exceed another customer’s offer for the space, so don’t let yourself be pressured into adding the space if the terms do not meet your needs.
Relocation or Expansion Clause. Putting this clause in your lease means that you can potentially move into another space the landlord has available in the event that you grow and need a larger space. The specifics of this clause differ from lease to lease, but be aware of the basics and ready to negotiate for this perk.

Unforseen boons and setbacks happen to businesses all of the time, and the best way to prepare yourself is by anticipating every possible scenario while negotiating your lease!

If you are looking at commercial MLS listings in Kansas City, give us a call at 913-685-4100 to find out more about our office space for rent in Kansas City.

3 Things You Should Know About an Office Space Lease in Overland Park

The commercial real estate leasing process can be very detail-oriented. Here are a few things to be aware of when you enter lease negotiations, as suggested in the article “Commercial Real Estate: What You Need to Know Before Leasing”:

Beware of the first draft. Know that the first copy of a lease that a landlord gives you will be full of terms that are much more favorable to them. The landlord does this hoping that you as a tenant will sign this first copy without putting up a fight. However, you need to enter negotiations knowing that the lease you will receive is not standardized—many of the clauses in it are up for negotiation, and you can potentially get a lease to a point where it is fair to both parties.
Personal guarantees. You will most likely have to sign a personal guarantee when renting a space, which means that you are personally liable for rent in the event that your business cannot pay. A landlord will also probably want to check on your personal finances to make sure that you can follow through with this. Note that landlords usually only care about this until you have established your trustworthiness as a tenant, so you might be able to negotiate to end the personal guarantee after a few years.
Commercial lease pricing. While your rental rate is going to be quoted on a per square foot basis, know the difference between usuable square footage—the office space you will actually use—versus the rentable square footage—the rate you will be charged for that also includes common spaces in the building.

Be ready to be a strong negotiator by doing your homework on commercial leases!

If you are interested in office space in Overland Park, KS, give a commercial real estate broker in Overland Park a call at 913-685-4100!

10 Small Office Lease in Kansas City Mistakes that Could Hurt Your Business

While negotiating a lease might be a complicated and frustrating process, it is important to be diligent throughout the entirety of negotiations—or your business could suffer the negative effects of leasing mistakes in the long term. Here are a few mistakes tenants often make to be aware of as you conduct negotiations, as suggested in the article “10 Leasing Mistakes Office Tenants Make”:

Entering negotiations at the last minute.
Poor space planning or an inaccurate estimate of your business’s space needs.
Looking at costs above all other concerns.
Losing an opportunity by hesitating before signing.
Failing to define objectives before making decisions.
Not taking into consideration potential growth.
Not considering exit strategies in a lease.
Not working with lawyers or real estate agents who can offer objective legal advice.

These pitfalls can be avoided by giving yourself plenty of time to research commercial lease negotiations and to work your way through the process without the pressure of a looming move-out date from your current space. Before you even enter negotiations, take the time to brainstorm your business needs, goals, and budget for a new office space.

If your business is interested in renting commercial realty in Overland Park, give a DDI Commercial real estate broker a call at 913-685-4100!

Security Deposits for Commercial Realty in Overland Park

If you have found a commercial space that you have decided to lease, your landlord will probably ask you for a security deposit. Here is some information about security deposits that might be useful to you during this stage of the renting process, as explained in the article “Significant Drafting Issues Specific to Commercial Leases”:

What is the purpose of a security deposit?

Security deposits are the landlord’s way of protecting themselves from tenants who default. If the landlord is at all concerned about a tenant’s ability to pay rent, he or she will ask for a security deposit that will be refunded only at the end of the lease term when the client has met all of the lease requirements.

What is the amount of a security deposit?

The amount a landlord asks for varies based on both the size of the space being rented and the credit history of the potential tenant.

What are some issues surrounding security deposits?

During negotiations you will want to clear up several questions about the security deposit: Will there be interest on the deposit? Will it be credited to rental payments over the course of the term, or will it be refunded all at once at the end of the term? Will it be kept in a separate account if interest will accrue? Address all of these things before you sign the lease.

If your landlord does require you to make a security deposit, make sure that you clarify in negotiations all possible issues that may prevent you from eventually receiving this money back.

If your business is looking for office space in Kansas, give us a call at 913-685-4100 for a tour of our office suites for rent in Overland Park!

15 Ways To Be Spending Savvy in your Office Space in Kansas City

Most small businesses need to be very cost conscious when they first start out in order to survive. Here are a few tips for how your business can start to save, as suggested in the article “25 Money Saving Tips for Small Business”

Switch to online billing services. By using services like PayPal, you might be able to avoid some monthly and statement fees, though you will want to look into the “per transaction” fees on any online banking system to make sure that particular site will really end up costing you the least.
Watch your printers. Printer ink can be expensive, so look into ways to save, such as using recycled cartridges, buying in bulk, or sharing printers.
Reduce phone expenses. Take a look at your phone usage and think about ways you can adjust to save some money, whether that be eliminating a few phone lines, changing your plan, or looking into internet phone services.
Get rid of the desktops. If possible, switch employees to laptops, which consume much less energy and have the added benefit of being mobile.
Turn off the lights. Try to keep utility expenses down by keeping lights off in unused areas of the office.
Take advantage of the internet. Whether for calls, conferences, business form templates, ordering checks, advertising, or sending newsletters to clients, the internet can make your work more convenient as well as more cost efficient.
Review spending on supplies. Is it possible to buy more things in bulk? Look into trade shows, Craigslist, or buying wholesale as ways to save on office expenses.
Consider subleasing. If you have unused office space, you might be able to arrange to sublease the space, which would mean not paying for unused space and getting some help with rent.
Hire interns. When you are looking for seasonal staff, consider opening up positions to college students who often do internships for class credit, which will reduce your payroll without hurting your productivity.
Cross promote. Include in an advertisement a mention of a service or item that would be a good addition to the item being advertised.
Join community groups. Being involved in trade associates and other community groups can often provide advertising opportunities and can keep you plugged in to the latest news and techniques in your industry.
Evaluate your mailing list. Take a look at your mailing list to see if you can weed out any inactive customers, undeliverable addresses, or changed addresses. Mailing is an expense for you, so you want to make sure you are not wasting letters. You can also save on mail by sending it in the morning so it will arrive early rather than paying for priority or express mail.
Ask for referrals. Word-of-mouth is a powerful form of advertising, and it doesn’t cost you a dime. Include testimonials on your business’s website and ask clients to make referrals.
Get the best deal. Request three bids from vendors before signing a contract, because often vendors will match competitor prices in order to get your business.
Travel smart. Use travel websites to look for the best plane ticket prices. You can also save by having employees share things like rental cars or even hotel rooms. This kind of cooperation can majorly reduce travel costs.

Small businesses can benefit financially from taking a step back and evaluating what they have been spending on. Often there are a variety of simple solutions for cutting costs in an office space!

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

Factors to Consider When Leasing Equipment for an Overland Park Office Space

While leasing office space equipment has many advantages, there are also a lot of other factors to consider that might not make it the best fit for your business. Here are a few things to think about if you are considering renting your equipment, as suggested in the article “Leasing Business Equipment”:

If you are planning on renting for just a short period of time, this might be a cheaper option, but long term renters should be aware that the lifetime cost of renting a piece of equipment will usually be higher than purchasing it.
You are forfeiting ownership interest by renting, which means that if you have become dependent on the equipment and want to purchase it at the end of the lease, it might be too expensive.
One way to try to establish equity in an asset is to negotiate for some of your rental payments to go towards the purchase price so that you might be able to fully purchase the item at the end of the lease.
To avoid unwanted legal effects, you might want to consider hiring a lawyer to help you with the equipment lease before agreeing to it.

Do some research before leasing equipment and decide if this is the best option for your business.

If you are interested in Overland Park office space for lease, give us a call at 913-685-4100 to set up a tour of an affordable office space in Overland Park!