Southcreek News

Beginning Negotiations for an Office Rental Space in Kansas City

Getting ready to start the negotiation process? Here is some information about what the initial negotiations typically involve:

Sometimes when you first reach out to a landlord about your interest in a space, they will give you a form listing the lease’s asking terms. The form might include either a response section or attached paperwork for you to fill out counter offer information. Other landlords might simply give you a copy of the listing papers—often in the form of a flyer or ad—with their asking terms.
When you submit your counter offer, it might be in your best interest to include a letter or some other written communication. This allows you to sell yourself as a tenant, inform the landlord about your business, and make a more personal connection. This is an especially good tactic if you are dealing with a hot property with several interested parties.
Remember that negotiation often goes back and forth, so plan to be patient. Leasing agents make some decisions on their own, but will sometimes need to consult the landlord, which takes time.
If is okay to follow up if you have not heard back on your offer in one to two business days, but avoid seeming too anxious or desperate. Bear in mind that listing agents want to move property quickly, so they typically do not need much reminding.

Know what to expect as you begin negotiations to ensure that this process goes as smoothly as possible!

If you need help finding affordable office space in Overland Park, give a DDI commercial real estate broker in Overland Park a call at 913-685-4100 to start talking about available spaces!

Getting Initial Asking Terms in Writing for a Small Office Lease in Kansas City

If the landlord or leasing agent you are working with only gives you the terms verbally, ask for the terms in writing before you draft a counter offer. You can simply ask for them in an email or a copy of the listing containing basic leasing information if the agent or landlord is hesitant to give you a letter. Here are some reasons why it is so important to get the initial leasing terms written down:

Agent Misunderstandings. A leasing agent is working for the interests of the landlord, and it is possible that they could misunderstand the directions of the landlord, or even possibly attempted to alter them. If you have the terms in writing, you can show the landlord that you made a counter offer in good faith based on the information that the leasing agent had given you.
Your Misunderstandings. If you are simply told the terms, it is also possible that you could misunderstand them and not be able to go back and reference them as you write a counter offer. Misunderstood information could lead to you making a counter offer that is either too high or too low.
Research time. Asking for the terms in writing also buys you a little time to research more about the lease, compare terms to other potential leases, or to consult an attorney about the terms.

Remember that asking for terms in writing does not legally require you to move forward with the lease. You can still either counter the terms or just turn them down if you do not think they will work.

If you are looking for an office space for rent in Kansas City, give Kathy Woodward at DDI Commercial a call at 913-685-4100 to find out about our commercial listings!

Checklist of Conditions for Your Office Rental Space in Kansas City Lease: Part III

Have you done a walk-through? Talked to your landlord about any repairs that need to be made? Read over the lease? You are almost there! It could not hurt to read the lease carefully again—this time with a checklist in mind to make sure that the lease covers anything you might have concerns about. Here are a few final things to make sure your lease addresses:

What are the terms of renewal? What will your rent increase be if you renew, and will you be required to sign a new lease after a certain amount of time? Usually landlords make the renewal term the same amount of time as the original lease (i.e. a two-year lease would mean a two-year renewal option).
Specifically state in the lease any work you plan on doing to repair or improve the property. Some landlords might give you credit for the work you do, but they will want to approve it first. Other might not allow you to do anything unless you use their contractors.
Look closely at anything the landlord has promised to do or not do. You do not want to leave things at an “oral” agreement, because proving these terms were agreed upon can be extremely difficult, so be sure these terms are written into the lease.
Any other specific terms you have asked to be a part of the lease.

If any of these items are not included in the lease, request that they are written into the lease before you sign it, and make sure that you fully understand all of the terms of the lease!

Give one of Southcreek’s commercial real estate brokers in Overland Park a call at 913-685-4100 to learn more about our available business space for rent in Overland Park!

Checklist of Conditions for Your Office Rental Space in Kansas City Lease: Part II

Don’t forget to go over all of the information in your lease before you sign it to make sure that everything you might want included or have questions about is clearly covered. Here are some more suggestions for things to be sure to look out for:

The monthly rent rate—how much you will have to pay, what it does and doesn’t cover, and how it is calculated.
Any additional fees that might be required of you (i.e. parking lot maintenance, percentage of profits—anything you might have to pay in addition to monthly rent).
When your rent is due and how it needs to be paid (mailing address, in person, etc.).
How much late fees might be and when they are incurred. What to do in the event that the payment due date falls on a Sunday.
What insurance you are required to have at the signing of the lease and during the lease term.
Will anyone have the right to access your space without your permission, and if so, under what circumstances might this occur and who would it be?
Unless your lease specifically tells you that you can share the space with another business or sublease, you cannot. If you would like to sublease you must make sure that it is stated in your lease that you have this privilege.

Be sure to look for these things and a few other important provisions in your lease before you sign the dotted line!

If you are on the hunt for commercial space for lease in Kansas City, be sure to give a DDI commercial real estate broker in Kansas City a call at 913-685-4100 to find out about Southcreek’s available spaces!