Southcreek News

10 Things To Do Before Signing a Small Office Lease in Kansas City: Part II

Before you sign your final lease, make sure you take the time to go over a few things that could save your business money and hassle in the long run:

5.   Think about asking for a CAM Stop lease. A CAM Stop lease means you will only pay for increases in CAM and property taxes after you base year (initial lease year). Even though the landlord might increase your base rent, this provision will eliminate some of the “mystery fees” from your rent. You could also ask for a cap on the CAM so that it will only increase by a certain percent that you have already negotiated.
6.   Read the CAM definition. This is one of the most confusing parts of the lease, and you will want to make sure you aren’t paying for things that are not your responsibility. Things to look out for include things related to the landlords marketing efforts, legal fees for negotiating other leases, administration fees over 3%, benefits for the landlord’s employees, and any build-out expenses for other spaces.
7.   Understand your capital expenditures responsibilities. “Capital Expenditures” in a commercial lease usually includes expenditures for major repairs/replacements (roof, foundation, HVAC, etc.). The standard for capital expenditures varies from state to state, but you will want to do your best not to have to bear the full burden of these costs. Perhaps talk to your landlord about limiting your obligation to regular maintenance or general repairs only up to a certain annual amount.

It is important to look out for these and other issues before you sign your office space lease in Overland Park.

Give us a call at 913-685-4100 to start talking about leasing an affordable office space in Overland Park!

10 Things To Do Before Signing a Small Office Lease in Kansas City: Part III

Here are some final tips to think about before signing a lease for your new executive office rental in Overland Park:

8.   Find out if the lease is assignable. If you find yourself in a position where you need to sell your business, location could be a major part of its sale value. You will want to check whether or not the landlord has the right to terminate the lease in the event that you sell your business and ask for an assignment, because terminating the lease could kill your sale. See what you can do to eliminate or modify this clause, but understand that your landlord will still want to retain the right to reject the assignment if the buyer is financially unacceptable.
9.   Plan to provide a guarantee. Most landlords these days will want you to personally guarantee your lease, but these guarantees are negotiable. Ask to provide that you are only required to guaranty for a portion of your lease term, or see if you can get a guarantee that only last 6 months to a year after the termination of your lease, rather than the rest of the lease term.
10.   Be realistic. Understand that landlords are going to be more or less likely to negotiate with you depending on what percentage of their larger property you are renting. Perhaps consider hiring a lawyer to help you best understand what is worth negotiating for so you can best pick your battles.

Remember that finalizing a lease requires a lot of careful—and sometimes tedious—double-checking and negotiating if you want to set your business up for success in a new space!

Give a commercial real estate broker in Overland Park a call at 913-685-4100 to learn more about our available spaces!

10 Things To Do Before Signing a Small Office Lease in Kansas City: Part I

You have found the perfect office space, negotiated your rent, and now you are getting ready to sign the dotted line…before you do, here are some things you should double check:

1.   Read the lease. Though it may be long and not the most exciting reading, you need to know what is in your lease. Check terms, important dates, anything rent-related, your obligations, your landlord’s obligations, special terms, and termination clauses. You want to know exactly what you getting yourself into.
2.   Continue negotiations. Even though you have been given the lease, some of the terms might still be negotiable. While reading your lease, take note of provisions you aren’t thrilled with and talk about with them with your landlord—you might be surprised at what you can still change.
3.   Figure out your business’s legal structure before signing. Make sure that protective corporate shell is in place before finalizing your lease. Be sure that your filed Articles of Incorporation or Organization (sometimes called Certificates) have been returned from the Secretary of State.
4.   Understand the leasing terminology. Know terms like “Common Area Maintenance” (CAM) and how they will affect your business and rent rate.

See future posts for more items to double-check before finalizing a lease for your office space in Overland Park, KS!

Want to learn more about Southcreek’s business space for rent in Overland Park? Give us a call at 913-685-4100!

Checklist for Leasing Overland Park Office Space Part II

Here are some more suggestions for a checklist your business might consider making before leasing a new office space:

5.   Handicapped Accessibility: Is the space wheel-chair accessible with a reasonable amount of handicapped parking? Legally, buildings have to have designated handicapped parking, so if you do not see any, ask the landlord why not, and if they are planning to add spaces. A landlord could try to pass the cost of these kinds of additions and renovations onto their tenants.
6.   Safety and Insurance: You will need general commercial liability insurance to move into most leased commercial spaces. If you cannot get insurance after signing a lease, you might find yourself still stuck paying for that lease anyway. Some specific safety questions you should ask include whether the area is safe and secure, whether it has ample and working nighttime lighting, are there alarm services or onsite guards, are there nearby police or fire departments, the location of the nearest fire hydrant, and whether there are smoke detectors and sprinklers in the building. Concerns like these affect the safety of you and your customers as well as your ability to get insurance and the rates and coverage of that insurance.
7.   Restrictions on Business Use: Are there any restrictions on the type of retail business you can run, the hours or days of your business operation, or how many customers you can have per day?

Think about what will best help your business succeed and grow, and make your own checklist to aid your search for Kansas City office space for lease.

If you are interested in finding an office space lease in Overland Park, give us a call at 913-685-4100!

Checklist for Leasing Overland Park Office Space Part I

Business decisions should not be made impulsively. Think about making a checklist like this to make sure a space will meet your business’s needs:

Property Maintenance: Is the park well maintained? Parks that look run-down will not only hurt your business’s appearance, but may also be a sign that you will be dealing with an unresponsive landlord.
Visibility to Customers: If it is important that you attract street traffic, can the front of your office space be seen from the main road? Or does it have a sign advertising the businesses in the park that is street-visible? Whether you are looking for a retail space, industrial space, or business park, it might be worth looking into whether the owner advertises on behalf of the tenants in order to draw in business.
Parking: Are there plenty of parking spaces? Do not just visit the parking lot after-hours to tell; check it out at several different times on different days to get a good picture of the parking situation. A parking lot that is typically full suggests a strong flow of customer traffic, but it could also mean that your customers will have difficulty finding spots, so find out how much parking your business will be assigned.
Advertising Restrictions: Are there any restrictions on signs such as color, size, lighting, or are you required to use the landlord’s vendor?

Consider these and other factors when you are looking at different business spaces!

If you would like to learn more about Southcreek’s Kansas City office space for rent, give Kathy Woodward at DDI Commercial a call at 913-685-4100!

How to Calculate Square Footage for Commercial Real Estate

Commercial real estate rental rates are not calculated the same way as residential leases. Residential rental rates are often determined by looking at similar rentals in the area, whereas monthly rent for commercial property is a little more complex and based on several types of square foot measurements. Most commercial leases charge rent based on “rentable square feet” versus “usable square feet.” Here are some definitions that might clarify these terms:

Usable Square Feet – Square footage of space actually occupied by the tenant
Rentable Square Feet – Usable square footage + a percentage of the square footage of the common areas. Common areas are the parts of the building that all tenants use, such as hallways, elevators, stairwells, and lobbies. The percentage of square footage of common areas is divided up among tenants on a prorated basis.
Gross Square Feet – Total square footage of the entire building.

Thus, when a tenant is paying a rent according to rentable square feet, they are paying a part of the landlord’s expenses for the common areas in addition to their usable square feet. This practice of adding common area expenses and usable square feet is called the “load factor,” and the load factor typically increases annually at a rate that is different from rent increases for your usable square footage. This can all be very complicated and confusing, so before you even take a tour of a space, be sure to ask the realtor over the phone about the monthly rates for both usable square feet and rentable square feet.

We can help you figure square footage for your business using our office space calculator. To find out more about the size and rates of our commercial space for lease in Overland Park, give us a call at 913-685-4100!