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Tips: Signing an Office Space Lease in Overland Park

Signing a lease for office space in Kansas City is an important step for your business not only because it determines the physical space in which you will be conducting business, but also because it can affect your business’s ability to grow and evolve.  With that in mind, think about a few tips as you begin the lease negotiation process:

Negotiate a Lease Best Suited to Your Business
Before you even begin negotiating, brainstorm a list of terms that would be beneficial to your business.  For instance, if you are opening a certain type of store in a mall or some other retail setting, you might want to stipulate that no other store like yours can rent space in that area for the duration of your lease.  If you are expecting walk-in business, be sure to negotiate for terms that will let you put up any necessary signage.

Sign the Right Lease for Your Needs
The benefit of a shorter-term lease is the option to leave the location early if you are not pleased with it.  While a longer-term lease offers stability and can keep increases in rent down, a longer lease ties you to a location that might be too small or unprofitable for your business down the road.  Usually there are ways to get out of any kind of lease, but you do not want to go into an agreement thinking about ways to get out.

A savvy lessee could potentially save their business money and create opportunities for business growth and development!

If you would like to learn more about Overland Park office space for lease, give one of our commercial realtors a call at 913-685-4100!

Lease Language for Office Space in Overland Park KS

If you are looking to rent Overland Park office space for lease for the first time, you might want to be familiar with some of the basic vocabulary of the commercial real estate market:

Landlord
Someone who rents property to another (also known as a “lessor”); an owner of property who hands over their right to use that property to a tenant for a specific period of time in exchange for rent.  A landlord still holds the title to the property, but the lessee’s (tenant’s) rights are spelled out in a contract called a lease.

Lease
A legal agreement in which a lessee is allowed the use of real or personal property of a lessor in exchange for a rental charge.  This contract might provide for restrictions, the purpose of the use of the space, and the length of the lease.

Option Agreement
A legal contract between the landlord of a piece of property and a potential lessee in which the landlord gives the potential tenant the first chance to buy that property up to a certain date and for a fee.

Right of First Refusal
The opportunity given to a tenant to match the terms of proposed contract for another space before that space is rented out to another potential lessee.

Market Price
In general business terms, this refers to the price that buyers and sellers of a product (in the case of commercial real estate, a piece of rental property) have agreed upon in accordance with supply and demand.

Fixed Price
A price spelled out in a certain type of contract.  This price is predetermined and invariable, versus dependent on the costs of production.

These are just a few terms to be familiar with as you negotiate for the best possible Overland Park office space!

If you are looking to learn more about available space in Overland Park, give us a call at 913-685-4100!

Overland Park Office Space Negotiation Tips for Small Businesses

If you have been put in charge of negotiating an office space lease in Overland Park for your small business, you may be a bit overwhelmed and wondering how to get a good deal for your business.  Negotiating a good lease can be crucial in making sure that your company has enough money to finance future growth.

Often your negotiating abilities are dependent on how much leverage you have.  You can figure this out by doing some research on the space—has it been vacant for a while?  Are there other companies interested in the space?  Knowing these factors can give you an edge in your negotiations.  Here are a few other thoughts to consider as you begin your negotiations:

1.    Term of your lease.  Even if you aren’t sure how long you want to stay in the space, you might consider the relative advantages and disadvantages of longer or shorter leases.  For instance, landlords are often more amenable to making concessions for longer-term leases, but if the demand for rental space decreases over time, you could be stuck paying an above-market rental price if you are locked into that longer lease.  A safe bet might be negotiating a shorter-term lease (i.e. a year or two) with options to renew (i.e. four two-year renewal options), versus a ten-year lease.
2.    Amount of space.  If you are comparing a few different spaces, you will want to know the exact usable square footage for each space.  This is different (less) than the rentable square footage, which includes common areas such as bathrooms, lobbies, elevators, and public corridors.
3.    Permitted use of the rental space.  Most leases have a section that discusses how you are permitted to use the leased space.  Even if your intentions for the space are initially narrow, try to make this clause as broad as possible to account for the potential growth or change of your business.

If you think you are ready to begin the negotiations process, give one of Southcreek’s commercial realtors a call at 913-685-4100 to talk to us about available executive suites in Kansas City!

More Kansas City Office Space for Rent Options

A renewal option and a short term lease with a renewal option are just a few possibilities for your business’s office space lease in Overland Park.  Keeping in mind the future growth or changes of your business, here are a few more options to think about:

3.    Option for additional space.  Having the option to expand is very important for a growing business.  A landlord might be inclined to grant the option for additional space if they feel that you might be an important tenant that could potentially attract other businesses, especially in a retail context.  You will want to carefully examine the terms for renting extra space to make sure that option is in your business’s best interests.  When you are negotiating your initial option agreement, you will determine with your landlord if you are going to pay for your expansion at the same per square foot price you are already paying, at the fair market price at the time, or at a fixed rate of increase.
4.    Option to end the lease early.  This option is becoming more popular in commercial leases.  Often landlords offer this clause to important businesses with the goal of getting them to sign long-term leases and attracting other high profile tenants.  If the tenant exercises their ability to terminate the lease early, the landlord will receive some sort of compensation.
It cannot hurt to look into all of your options as you are negotiating a lease to make sure that you can adequately communicate with a potential landlord the needs of your business.

If you are looking for an executive office in Overland Park, call and talk to one of Southcreek’s commercial real estate brokers at 913-685-4100 to talk about your vision for your ideal office rental space!

Kansas City Office Space for Lease Options

When negotiating a lease, it is good to bear in mind that there are several options to consider and address.  Weighing the pros and cons of each of these could save your business some money or prevent future issues in your lease.  Here are a few options to think about:

1.    Option to renew.  This is the most common option included in a real estate lease.  Your landlord will want to raise the rent at the end of your initial lease period, so this is something you might want to address in advance—for instance, by getting an option to renew at a fixed price instead of renewing at the fair market price at the time.  This could help you save money at the end of your initial term, especially if office rental rates have increased.
2.    Short lease with one or more options to renew.   This kind of lease gives you flexibility.  Usually landlords give you a certain period of time before your initial lease ends to determine whether you want to renew your lease and to notify the landlord in writing that you would like to renew at a predetermined amount.  This option might also include an extra fee for the right to stay, which would be determined at the beginning of your initial lease.  Besides an increase in rent, the terms of the initial lease typically apply in the renewal period.

These are just a few options for your leasing possibilities (see the next post for some more).  Be sure to consider what option is best for your business as you begin your negotiations for your Kansas City office space.

If you are looking for Overland Park office space for rent, give us a call at 913-685-4100 to talk about leasing with Southcreek!

4 Negotiating Tips for Kansas City Office Space

Did you know that one of the biggest expenses incurred by a growing company is their office space?  Most executive suites in Kansas City have different leases, so learning how to negotiate a lease that will satisfy your business’s needs and save you some money might allow you to hire some more employees or undertake a new project.  Here are some tips to keep in mind while negotiating:

1.    Term of your lease.  There are positives and negatives to choosing a long term lease.  On the one hand, landlords often make concessions for longer-term leases, but it is also important to keep in mind how the needs of your company might change during the course of your lease so a shorter-term lease with renewal options could be a good middle path.
2.    Permitted use of the space.  A lease usually includes a section dealing with how the tenant may use the space.  It is usually in you as a lessee’s best interests to make this clause broad, in case your business wants to diversify or sublease the space to other businesses.
3.    Operating costs.  Operating costs, HVAC, and common area maintenance are things that your landlord might be charging you separately for.  If possible, try to negotiate a cap on this amount or a fixed fee.
4.    Increases in rent.  A long-term lease rarely comes with fixed rent.  Landlords often charge annual increases in accordance with increases in the Consumer Price Index (CPI).  If at possible, see if your landlord will postpone this increase until two years into your rent.  You might also try capping the amount of each annual increase or negotiating a predetermined fixed amount.

If you would like to ask any questions about negotiating an office space lease in Overland Park through Southcreek, give us a call at 913-685-4100!

Halloween Happenings Near Southcreek Office Park

Don’t miss out on all of the spookiness Kansas City has to offer this Fall:

Haunted Houses.  If you are looking for a good scare this October, Kansas City has some great haunted houses!  The Beast and The Edge of Hell both have multiple floors of terror, with a thrilling slide to the bottom for those who make it all the way to the top.  Go with a whole group and be sure to watch your back!

Boo at the Zoo.  A perfect trick-or-treating experience for little ones who love animals!  Dress up and head to the zoo, where stations will be set up for some family-friendly trick-or-treating.  You can also enjoy activities, entertainment, and games all weekend!

Dinner with Count Dracula.  Use your Southcreek Office Park discount for a spooky night at the Kansas City Renaissance Festival!  See the classic “Dracula, A Madman’s Tale” with a contemporary steam punk spin and enjoy a six course meal.

Halloween Haunt at Worlds of Fun.  Every weekend night of October, Worlds of Fun turns into the playground of zombies, twisted clowns, and other scary creatures.  Check out mazes, shows, and all of your favorite rides in a wonderfully spooky atmosphere (a little too spooky for children under 13)!

Check out this month’s issue of What’s Up at the Creek for more Halloween activities this October!

Looking for executive suites in Kansas City?  Give one of our commercial realtors in Kansas City a call at 913-685-4100 and we can help you find what your business is looking for!

Overland Park Office Space

Familiarity with the terms and basics of renting Overland Park office space can be a leg up for a small business looking to find an office rental space.  To help you keep up with negotiations with commercial real estate agents and landlords, check out some more commercial real estate terms to know:

1.    Tenant improvements: Improvements done to the interior of an office rental space, which can be paid for by the tenant, the landlord, or both, depending on the type of lease.
2.    Common area maintenance (CAM): The additional rental charges that tenants pay to maintain common areas of the property, which are typically available for use by multiple people and owned by all tenants.
3.    Letter of intent: An informal, non-binding agreement between the lessee and landlord declaring their intent to proceed with negotiations.
4.    Latent defect: A problem with the property that could not have been discovered through normal inspections performed before the agreement.
5.    Work letter: An agreement between the tenant and the landlord dealing with all issues related to the construction, or build out, of the interior of the rental space.

Having these terms in mind can help you be a little more prepared to wade through all of the charges, types of leases, and agreements that are a part of finding Kansas City office space for rent.

If you and your small business would like to learn more about Overland Park office space for rent through Southcreek Office Park, give us a call at 913-685-4100!

Office Space for Rent in Kansas City

Here are a few basic questions to consider if you are thinking about relocating your business to some office space for rent in Kansas City:

Why look?  Sometimes an important factor in choosing to find a new office space is location.  Unless you are running your small business from home, evaluating the location of your business, analyzing your current lease, or even thinking about buying real estate are all things you might want to want to consider as you try to forge the best possible future for your business.

Why rent? A lot of small businesses looking to relocate steer clear of buying because purchasing real estate  requires a large cash outlay (usually about 15-25% of the purchase price).  A lot of business owners would prefer to put that amount of money into their actual business rather than the space they occupy.

Where to start?  Researching rental costs to get an idea of the average cost per-square-foot in the area you want is a good first step in the process.  There are several other factors to consider, including types of rent, the growth of your business, common area maintenance, etc.  Finding a lawyer to help negotiate might be another helpful step.

When to commit? A good bottom line to remember is that if the terms of the lease dictated by the landlord do not make it possible to run your business profitably, then it is time to renegotiate, find a new location, or even consider whether finding a new space is right for your business at the time.

This is just a brief overview of basic questions associated with relocating your business; the steps in finding Overland Park office space for lease are more involved than just this, but an overview can be a helpful tool as you consider your options.

Give one of our real estate agents at Southcreek Office Park a call at 913-685-4100 if you are looking to relocate and want to find out more about our available executive suites in Overland Park!

Executive Office Suites Kansas City

You have decided that your business is ready to relocate to new executive suites in Kansas City and you are ready to begin some research.  What to consider?  Here are a few factors to think about as you are looking for a new Kansas City office space for your business:

  1. Anticipating Growth.  Do you think your business might grow dramatically in the near future?  If so, looking into a short term lease or an option to rent additional space might be a good way to accommodate that potential growth.
  2. Common Area Expenses.  In many leases you will be required to pay to maintain common areas of the building or floor, including expenses like repairs or garbage services.  Make sure you know exactly what you are responsible for and how much you will be paying.
  3. Type of Rent.  There are several different types of rent, some fixed, some dependant on a percentage of the profit your business makes, so consider what would be best for your business.  You might also be subject to rental increases, so a little research into what is a normal amount and frequency for these increases in your area might give you a good idea of what to reasonably expect.

These are just a few considerations to bear in mind as you weigh your leasing options.  Being savvy about types of rent and expenses will make it easier for you to know exactly what you are getting yourself into when you sign a lease.

If you are looking to rent in an office building in Overland Park , give Southcreek Office Park a call at 913-685-4100 to learn more about our available rental spaces!