Southcreek News

Sharing Kansas Office Space for Rent: Things to Look for in a Co-working Space

A lot of small businesses decide that sharing a Kansas office space for rent with another business or individuals is the best financial option for them, and this setup also has the added benefits of networking opportunities and creative energy, among other things. But sharing a space with another business can be tricky, so whether you are looking to join a co-working space or you are interested in starting one, make sure the space has the right conditions to make the experience a success. Here are a few things to look for when considering prospective office spaces for rent in Overland Park, KS, to turn into a co-working space, as outlined in the article “Shared Office Space: What Your Small Business Needs to Know”:

#1 Office Layout

When you share a space with other tenants, you give up some control of the setup your space. It is important to think about how all of the different businesses will share the space – will each person have their own desk and equipment that they return to each day, or will there be more of an open seating plan? Are there some spaces that need to be designated as quiet, private places and some for more collaborative work? These are important questions to consider in any office rental situation, but they become especially important to address in a shared space.

#2 Location

While co-working spaces are definitely great cost-effective options, make sure that you are not sacrificing your business’s image in favor of a cheap option. If a location does not seem like the kind of place where you would want to invite a client or the space seems to chaotic for your business’s culture, then you should probably cross that potential space off of your list.

#3 Co-Working Neighbors

Another huge factor in starting or choosing a co-working space is making sure that the people you are sharing the space with will be good neighbors. Not only do you want to make sure that they will be enjoyable to be around and easy to work with on any office space issues, but you should also consider whether it benefits your business to work alongside them. You might not always have the luxury of picking the perfect neighbors, but potential networking or collaborative opportunities are always a good thing to keep in mind when evaluating potential fellow tenants.

A co-working office space for rent in Overland Park can be a great way to save some money for a new business. If you are thinking of starting a co-working space, keep in mind important factors like your office setup, location and neighbors. These are things that you should consider in any office lease, but they deserve a little extra attention if you are considering sharing your space!

If you are looking to rent office space in Overland Park, give us a call at 913-685-4100 to learn more about our available office space for lease in Overland Park, KS.

6 Essential Questions To Ask Before Signing A Lease for Commercial Office Space for Rent in Overland Park, KS

When you are looking for Kansas office space for rent you will most likely spend a lot of time signing and negotiating your lease. This has the potential to can be a tiresome experience with delays, problems and long negotiations, but this process is normal and can be navigated successfully. So when you are finalizing your lease for your commercial office space for rent in Overland Park KS don’t worry! Just ask these six questions, as outlined in the article “10 Questions to Ask Before Signing a Commercial Lease,” which will make the signing process a little simpler:

Do you understand what the lease is saying?

This first one might seem like a simple thing, but it may be the difference between having a good space and a great space. This point is to make sure you understand the terminology used in the lease. A few words, like Common Area Maintenance, appear in acronym form: CAM. This number is based on the percentage of the building you are renting. There are a several other terms and phrases that are important and you should know about before signing your lease, so make sure that you read up on the terminology before entering negotiations.

Are you getting the best deal available?

Once you know most of the terms and phrases in the lease, look it over once more and maybe negotiate further. Is everything okay and ready to go? Does the lease address all of your concerns? What would you like to add or take away from the lease? It’s a good idea to address these things before you sign the lease, because once you’re committed you cannot change these issues.

Is your business organized and ready to go?

Organization is an essential key to any good business; so before you sign the lease make sure you know what you need to do right from the start. Go over the lease, have everything in place and know what needs to be started or taken care of before you start you open your doors—ranging from moving arrangements, to your budget for this space, to a business plan you can show the landlord to reassure them that you’re a reliable tenant. Also, it is advised that you have either Articles of Incorporation or Articles of Organization filed for an LLC back from the Security of State before things get going.

Have you read the lease agreement?

Yes, you should read every word of the lease before signing it. It can be a very long and not very interesting litany of technical jargon, but it is an important document for your business. It’s a good idea not to assume that everything is included; so make sure check everything from the starting date, to rent escalation to any other special terms you negotiated before putting down your signature.

Do you need a personal guarantee?

Most places probably won’t let you sign the lease without a personal guarantee, which essentially means that you are personally liable for upholding the terms on the lease. Of course this is negotiable, and you could either negotiate for a shorter period in which the guarantee is in place, or perhaps even a guarantee for half the time from when you terminate the lease.

What do you need to be responsible for?

Most leases will include a term called Capital Expenditures within the document. This usually means that you as the tenant are responsible for certain things that may need to be fixed in the building. These types of things can differ greatly from property to property and city to city. However, it is wise for a tenant to negotiate for the removal of terms that require you’re your business to take the majority of the repair costs yourself.

In the end, it is a good idea when looking for commercial real estate in Overland Park to be realistic with your negotiations. Someone who is leasing 5% of a larger property will have a completely different experience with the process than a person who is trying to rent out 70%. While there are certain variables you can’t control, you can prepare yourself to get the best possible deal by researching and studying up on what you can influence before entering negotiations.

If you are looking for an office space for lease in Overland Park, give us a call at 913-685-4100 to find out more about our office spaces for rent in Overland Park, KS, or even set up a tour.

18 Common Sections in a Lease for Commercial Office Space for Rent in Overland Park, KS

As you get closer to the end of your search for office space for lease in Kansas City, you will come to the negotiation process of finalizing a lease. Before really entering into this phase, it is wise to familiarize yourself with some of the terms you should expect to see in a lease. Below are explanations of some of these sections in a bit of detail, as described in the article “Commercial Lease Documents Explained: Typical Sections in a Commercial Real Estate Lease”:

Deposit: This section will detail any circumstances in which the security deposit payment may be forfeited or returned to the tenant.

Use/Restrictions: This describes what can and cannot be done on the premises of the property; for example, signs and sub-leases may be discussed in this section.

Term: This section describes when the lease begins, ends and or can be renegotiated. This is important, because even something as simple as your exact start date can have a big impact on things like finding insurance coverage for your business while in the space.

Parties: This is where the lease will state who the tenant and landlord is and their official names.

Taxes and Insurance: This section will include a requirement for the tenant to have insurance of some sort on the property to protect both the landlord and the tenant. It is also common in this section to discuss the division of property tax.

Parking: This should discuss details on handicapped parking, employee and customer parking, as well as the availability of space for parking.

Maintenance: This section discusses who is responsible for what in terms of minor or major damages to the space. Most tenants will be responsible for minor damages, while landlords will be responsible for failure of equipment and larger problems.

Hold Over: This term describes the consequences in the event that the tenant does not leave at the end of the leasing term.

Premises: This section describes what exactly you are paying rent for and how the space is divided.

Utilities: This section will describe utility costs, specifically how they are metered and distributed among the tenants. It may also speculate if the tenant needs to pay the landlord utilities and what will happen if they are not paid on time.

Subordination, Non-disturbance, and Attornment: This section will protect the tenant from foreclosure from the landlord. It will most likely describe what will happen if the bank or a new landlord takes over.

Rent: This section will discuss how the rent is distributed and calculated, as well as the common area maintenance and other associated costs that might be included in the rent.

Estoppel: This section touches on what will happen if there is any sort of change landlord’s position, and to verify if the tenant is holding up their leasing responsibilities.

Destruction/Condemnation: This clause will discuss what will happen in the event of the destruction or condemnation of the property.

Assignment and Subletting: If the landlord permits subleasing, this part of the lease will discuss the steps a tenant can take in the event that they want to sublease part of their space.

Options: This section will discuss the possibility of buying property or renting additional space within the same building.

Defaults and Remedies: Describes what the consequences are if one party defaults on the lease agreement, as well as what remedies are possible for the other party.

Once you have gone over your lease it might be a good idea to review the lease with an attorney. This can help you better understand more specific terms and conditions within the contract.

So if you are looking for Kansas Office Space For Rent, give one of our commercial real estate agents in Kansas City a call at 913-685-4100 to set up a tour of one of our spaces or learn more about our commercial property management in Overland Park KS!

6 Ways to Organize Your Kansas Office Space For Rent

Remember that time is money, and looking for those old files you saw three weeks ago in your commercial property in Overland Park, Kansas, will take a lot of time if you aren’t organized. Letting go of that digital and physical clutter can really help your business be more productive, so here are a few tips, as outlined in “Clean It Up! Being Productive at Work Starts with Organization,” to keep your office and computer clean and organized to save you valuable time:

#1 Organize physical paper as soon as you can.

A great way to deal with your physical paper copies is to scan them, file them somewhere on your computer and shred the actual physical copies. This is something you could do for invoices, receipts, letters and just about any desk clutter that is taking up too much room. For more important documents that you don’t want to get rid of or want to keep close by, look towards more common organizational techniques like file boxes and folders. It is best to deal with the physical papers right away so that you can eliminate any paper mountains obscuring desks or shelves.

#2 Create an effective file organization system.

This works for both your physical papers and computer documents. For physical documents, well-organized file drawers and folders work fine, but if you are a more computer savvy business, you may want to look into a cloud-based system where you save and back up files on a joint cloud service.

However, that’s just half the battle. You want to make sure that what you are filing is actually up to date as well in terms of labels and organization so you can access it after you store it. The best way to do this is to make sure to have everything dated and organize everything according to these dates; even if these documents are just edits to a previous ones, save these edits with a new date.

#3 Get rid of those unused files and programs.

Uninstalling or even deleting unused desktop icons as well as purging defunct programs from your computer will create more room and less clutter on your computer. Remember that organization of your computer’s desktop is just as important as your physical desktop. Keeping it clean will make sure that you have things visually organized.

#4 Make a list.

One of the simplest ways to stay organized and manage your tasks is to make a list of things that need to be done that day, week or month, and even in the next year or two. Keeping a list with different goals in mind can help you accomplish things in both the short term and long term. Many professionals say this is the best way to stay organized; the simple pen and paper method helps with understanding what needs to be done. Even though there are several apps out there for this sort of thing, there is something satisfying and tangible about the physical version, so grab yourself a whiteboard and hang it in the office to get your day started.

#5 Clear your desk.

Simple and easy—clean your desk at the end of each day; it will help organize your thoughts and make sure that your next day will be a new start without any leftover work from the day before. Many new businesses require their employees to have their desk clean for the next workday. It helps with general organization for the whole office.

#6 Use new technology to keep yourself organized.

There are thousands of new organizational apps to choose from to manage emails, meetings, etc. These apps and software claim to help organize your files and create daily project lists that will help you through your day. Ask around about what works for friends and co-workers, and experiment with a few different apps until you find what works for you.

Remember to stay organized in your Kansas office space for rent even after you do a major cleanup! Make a habit out of it. Once you have things nicely filed away, put into separate boxes, or stored on a hard drive, remember that the papers will still keep coming. Stay ahead of your organization, figure out what you need to keep, and make sure you have things ready to go before it gets out of control.

If you are looking for office spaces for rent in Overland Park, Kansas, at an office park in Kansas, give one of our real estate agents a call at 913-685-4100 to set up a tour of our commercial property in Overland Park, Kansas.

7 Ways to Make Over Your Small Office Space for Rent in Overland Park, KS

If you and your employees are starting to feel a little down about your small office space for rent in Overland Park, KS, there are so many easy ways to give your office a facelift. Studies have shown that making a space look better can have a positive effect on office morale and show employees that you are concerned about their comfort. Here are a few tips for improving your office space, as suggested in the article “6 Easy Steps to an Extreme Office Makeover”:

Create an Atmosphere of Hospitality. It is important to create a space that is welcoming for employees and demonstrates that you care about their little daily needs. Create a small “hospitality area” in your office by setting up a space with things like a coffee maker, mints, snacks, some first aid supplies and other odds and ends that make life a little more convenient.
Encourage Personalization. Letting people express themselves is a great way to foster creativity. Try allowing employees to decorate their own personal spaces with family photos, posters, knick-knacks, and even letting them play their own music. This creates an atmosphere where people feel more at home and part of the company “family.”
Bring in Some Color. Painting a space with brighter colors can be a cheap and easy way to cheer up a space. There are all sorts of studies demonstrating the positive effects of color on an environment. Consider painting an accent wall with colors that correlate to specific moods. For example, studies have found that blue can encourage calmness and relaxation, whereas red is ideal for tasks that require a more detail oriented focus.
Develop Company Culture. In addition to encouraging employees to create their own personalized spaces, it is important to personalize the whole office to showcase your company’s brand image. One way to do this is by painting your logo around the office, which has the double benefit of increasing brand visibility and brightening up an empty wall.
Add a Little Fun. People appreciate having a place in the office where they can take a moment to unwind and recharge, so think about taking a page out of Silicon Valley’s book and adding something like a foosball table or even just a comfy couch in a break area.
Upgrade Your Chairs. The importance of supportive furniture in the workplace is becoming a bigger and bigger conversation as studies are coming out about the negative effects of too many sedentary hours both in and out of the workplace. You can help combat these negative effects and improve overall office well being and comfort by investing in good office furniture that is supportive for different postures.
Create Zones. In addition to creating a fun break area or a hospitality area for your employees, think about the work they do on a daily basis and how you can design areas to better support that work, for example, rearranging furniture to encourage social interaction in a place for collaboration, or adding some headphones and armchairs in an area for quiet, private work.

Very small changes to your Kansas City office space for rent can go a long way in raising spirits around your office. Even if all you do is change out your chairs or repaint a few walls, your efforts demonstrate your interest in creating a positive work environment for your staff—one that supports their physical, emotional and mental well being. In turn, you might see the benefits of increased creativity, productivity and commitment to your business!

Looking for office space for lease in Olathe, KS? Give us a call at 913-685-4100 to get more information about our commercial real estate in Kansas City or set up a tour of one of our office spaces for rent in Overland Park, KS.

Office Space for Lease in Overland Park KS: When and Where to Look

Trying to find office spaces for rent in Overland Park, KS, and don’t know where to begin? Here are a few tips on when to look for commercial real estate in Overland Park and what resources are available to help you search, as described in the article “How to Find Commercial Real Estate for Lease”:

When to Look

While it might seem like the home real estate market has nothing to do with your office space, statistics show that a favorable real estate market for home buyers also correlates with a favorable market for businesses leasing commercial property. So when home prices in the area where you are looking are down, that might be a great time to start seriously looking into commercial property.

Another thing to keep in mind is to give yourself plenty of time to find a space and negotiate a lease—anywhere from six months to a year. If you find a space quickly, a landlord might be willing to hold it for you for a few months, but it is also likely that it will take a long time to find a space, gather any necessary documents, finalize a lease and eventually move into a space, so you do not want to wait until your current lease is almost over to start looking for a new option.

Where to Look

There are several different ways to find different types of commercial space for rent. Here are a few to start with:

Ask around. A simple way to start is just by asking friends and family in the area if they know of any available space. If you are looking for a small amount of space, there are also some local organizations who might have a spare office area, such as local community centers, churches or other businesses. You might also try checking in with the local chamber of commerce.
Drive around the area. Another easy early step is to just drive around the city or town and look for office parks with for lease signs. In tougher economic times, you will most likely see plenty of signs, and if you can find something and contact the lessor directly, both parties will be likely to save money without the hassle of an intermediary party that needs to be paid commission.
Check the local newspapers. This might seems a little old fashioned in the digital age, but this could also be a great way to save some money. Most papers will have ads from realtors, but in addition to looking at these, keep an eye out for listings that are posted by individuals. As with signs outside of buildings, this means you can work with the lessor directly, and because they don’t have to pay commission they might be more inclined to offer extra incentives such as a month of free rent.
Utilize internet search engines and websites. A great way to start a very general search is to type into Google the name of the location (city and state) where you are looking, followed by keywords related to the type of space you want, such as “commercial space for lease” or something along these lines. There are also a few different specific websites you can use to search:
- LoopNet – This nationwide website allows you to look for commercial space by city, state, or zip code. A lot of listings are for property that is for sale, but there are also always for lease spaces listed as well.
- Craig’s List – This catchall website can also be a good source of commercial space listings and you can narrow down your search to the county you are looking in and the type of listing. Craig’s List is also a common place for individuals to post listings, so it is another good opportunity to find a lessor who might pass along some of their savings to you in the form of various benefits.

When looking for commercial office space for rent in Overland Park, KS, it is good to look at several different spaces and systematically compare the pros and cons of each. There is more to consider other than just the bottom line rental rate, including extra fees, the length of the lease term, and any potential benefits a landlord might offer. Start early and give yourself plenty of time to find what will best carry your business forward in the upcoming years.

If you are looking for office space for lease in Overland Park, KS, give us a call at 913-689-4100 to find out more about our available Kansas office space for rent and even set up a tour!

Commercial Property in Overland Park, KS 101: A Guide to Finding Guide to Finding and Leasing Space

Finding and leasing the office space best suited to your business is a multi-step process that involves doing a little homework before actually starting the search for your perfect office park in Kansas. Here are a few key things to consider if you are looking for commercial property in Overland Park, as suggested in the article “How to Find the Best Commercial Space for Your Business”:

#1 Decide What Type of Property You Want

There are so many variations of commercial leases, so before you start seriously looking, try to narrow down what exactly your business needs. The first thing to focus on is what kind of property you are looking for. You know you want commercial real estate, but even within this category there are sub-categories:

Business Park – A property with a group of buildings designed primarily for business use with very light industrial use. A business park tends to be the cheapest option and is a common choice for doctors, law offices, and other professionals.
Commercial Retail Property – This type of property includes strip centers, malls, and other complexes that feature store-front businesses. This might not be ideal if you are looking for more of an office space, but a lot of commercial retail property owners also have some units in business or industrial parks.
Industrial Parks – This kind of property usually consists of warehouses and is best suited to manufacturing or other heavily industrial businesses. However, some property owners have started recently building out and renovating these spaces to accommodate more traditional office space tenants.

#2 Decide What Type of Lease You Want

Once you have narrowed down what type of property you need, the next step is to figure out lease options. The first difference to consider is between leasing and subleasing:

Lease – A lease is between you and the landlord and states that you are the main business occupying the property.
Sublease – A lease in which the business that already has the primary lease with the landlord arranges to rent out some or all of the space to another business. Not all leases allow for subleasing, and in this situation the original tenant cannot transfer the rights in their lease to the new business if they were not named in the lease originally.

There are pros and cons to both of these options depending what your business is looking for in terms of the amount of space and the level of commitment in a lease. Another thing to consider is the different ways that leases are structured. Here are some examples of common types of leases:

Gross Lease (Full Service Lease) – In this type of lease, common to office or industrial spaces, the landlord pays for most or all of the expenses associated with the property—taxes, insurance, maintenance, etc. These costs are passed on to the tenant through their rental payments in what is called the load factor.
Net Lease – In this lease, a tenant pays for a portion of other expenses (i.e. taxes, insurance, etc.) on top of a base rental rate.
Double Net Lease – Tenant pays base rent, plus insurance and taxes.
Triple Net Lease – Tenant pays base rent plus insurance, taxes and maintenance.

Again, there are pros and cons to the different types of leases, so it really comes down to whether your business would like to simply pay a consistent lump sum or possibly save a little by paying more or less each month

#3 Make a Checklist

In order to evaluate and compare spaces as logically and systematically as possible, make yourself a checklist before you even start looking. Here are a few things to include on your checklist:

Customer Accessibility – One of the most important factors is how visible and accessible you are to your customers. Make sure that you will have some sort of sign that is visible from the road if your space is not. You might also ask whether the property owner helps advertise for the businesses in the park in order to draw in more traffic for everyone.
Maintenance – Another thing to check for is whether not the property is maintained. A well-maintained space suggests that the landlord will be responsive to your need and also will create a positive impression of your business for clients.
Parking – Check on the parking situation both by asking the landlord about how many spaces you will be assigned and observing the parking lot at various times a day on different days to see how full of the lot gets. Also check to make sure that there are handicapped spaces available as well as wheelchair accessible entrances to the property.
Restrictions – Make sure to ask the landlord upfront about any restrictions relating to how your business can operate in the space, including hours or limits on customer traffic, and in regards to advertising, for example specific rules about the size or color of signs.
Safety – Check out the basic safety measures of the property, including whether they have an alarm service, security, nighttime lighting and fire alarms, as well as the proximity of fire hydrants and police and fire departments.
Insurance – Safety concerns are also related to insurance, as most places will require that you have some sort of general commercial liability insurance before moving into the space. Be sure to make sure you take care of getting insurance before you sign the lease so that you are not surprised by this problem later.

Deciding what kind of property you want, what type of lease best suits your business, and making a general checklist with which to evaluate spaces is a huge first step in preparing yourself for a smooth search for an ideal office park in Overland Park, KS.

If your business is looking for office spaces for rent in Overland Park, KS, give us a call at 913-685-4100 to learn more about our Kansas office space for rent!

Documents Needed for an Office Space for Lease in Overland Park, KS

Signing a commercial lease also involves providing a few other documents for a landlord, so it is important to make sure your business these different documents and can get them to the landlord so as not to hold up the leasing process. While different leases and landlords might require different specific documents, here are five documents you can generally expect to be asked for when looking to rent office space in Overland Park, as outlined in the article “Documents Required to Sign an Office Lease”:

#1 A Business Plan

Particularly if you are a startup company, a landlord is going to want some assurance that you will be a stable and reliable tenant. The first step in proving this is to provide them with a business plan, which should include an overview of what your company does, your goals both for the short and long term, and a general description of how you plan to use the office space. A good business plan will assure the landlord that you are thinking of the big picture and have really considered what leasing the space will entail.

#2 Bank Statements

In addition to your business plan, the landlord will want some financial records proving that your business has a good financial history, which is an indicator of your ability to pay rent. These documents should include things like profit and loss statements or balance sheets.

#3 Tax Returns

Providing your tax returns for the previous two years will help establish that your business is above board and is another indicator of your reliability.

#4 Professional Resume and References

A professional resume or some references from clients, previous landlords or accountants also further confirms the character of your business. A landlord might request both the resume and a few different references, so be ready with names to give them.

#5 Personal Guarantee

This is less than ideal for a business owner, but sometimes landlords require one. When you negotiate your lease, try to also address this issue. You might not be able to eliminate the need for it entirely, but you can try to ask for a limited personal guarantee, which might require you as a business owner to only pay rent for a certain period of time if your business breaks the lease. You can also see if you can have the guarantee waived after a certain point in the lease term. However, the landlord will most likely want some guarantee as an extra form of protection.

If you are in the process of looking for office space for lease in Overland Park, KS, make sure that you can access all of these documents. Your landlord might require more documents, such as an insurance policy, but this is a good place to start in establishing your good character as a potential tenant.

If your business is looking for commercial office space for rent in Overland Park, KS, give us a call at 913-685-4100 to find out more about our available Kansas office space for rent, or even set up a tour of an office space for rent in Overland Park!

Finding Kansas Office Space for Rent: 4 Steps to Take Before You Start Negotiations

Before you start a serious search for commercial office space for rent in Overland Park, KS, give yourself plenty of time to really prepare yourself—especially if it is your first time dealing with a commercial lease. Your professional image, business assets and the futures of your employees are at stake in this decision, so there is every reason to exercise the utmost care. Here are a few steps to take to get ready for the process of commercial real estate negation and rental, as suggested in the article: “Your First Commercial Lease: How to Prepare and What to Expect”:

Familiarize yourself with the jargon. Determining whether the spaces you are looking at are right for your business sometimes comes down to a matter of technical terms. Make sure you understand the different classes of commercial property, the different types of leases, and the difference between “usable” and “rentable” square footage. It is also important to understand the names of other fees associated with a lease, such as Common Area Maintenance (CAM) costs, as all of these things ultimately affect what you are paying for and your experience of the property.
Assess your budget. In addition to knowing the names of the various costs, you need to know whether your business can handle them. This means first looking at the financial status of your business, your projected growth and the level of risk that it is safe to assume in a lease.
Seek professional guidance. One thing to seriously consider in order to make the process a bit easier for you is working with a real estate attorney or broker to help you understand the details of your lease. While this is an added expense for your business, it might pay off in the long run if you can get a better deal and avoid some serious leasing pitfalls. Be wary of the brokers that are brought on by the landlord, as they are not objective third parties or interested in the most favorable terms for you. An experienced professional hired by you will have the best eye for details that a first time lessee might miss.
Consider the growth of your business. Another thing to think about is the growth of your business in the upcoming years. If you anticipate your business getting bigger, it is important to look for a space that you can grown into, or a lease with an option to expand. Most new and growing business also opt for shorter term leases (1-3 years) with an option to renew.
Evaluate your brand. A final thing to consider is how the location will affect the image of your business. Remember that even if you are only there for a few years, every place you choose will contribute to the brand image your business is building, and certain neighborhoods or properties convey different messages. This factor is more abstract than just the budget numbers, but take the time to include it in your overall strategy for finding office space for lease in Overland Park, KS.

Before you even start looking for Kansas City office space for rent, do the necessary homework to make sure you know what to expect from the process and what is best for your business.

If you are looking for commercial real estate in Kansas City, give us a call at 913-685-4100 to find out about our available office spaces for rent in Overland Park, KS.

Office Space for Lease in Kansas City: Understanding and Negotiating CAM Fees

No matter what size business you are or how much commercial real estate in Kansas City you are looking to rent, it is always worthwhile to ask for a better deal before signing your commercial lease. One area that can be confusing for businesses leasing a space is CAM fees, although this is an area that deserves attention in negotiations, as these make up a notable portion of the expenses you will be responsible for during your lease term. Here is some information on what CAM fees are and how to deal with them, as outlined in the article “Tips on How to Negotiate CAM Fees in Commercial Leases”:

Understanding CAM Fees – The most basic step is to understand what these fees are and what they cover. CAM fees typically cover the maintenance and repair of common areas that affect all tenants, including elevators, stairways, lobbies, restrooms and hallways, plus sometimes even the parking lot, sidewalks and landscaping of the property. Make sure your business’s CFO understands how to factor these fees into your budget.
Administrative CAM Fees – If you see this in your lease, these fees are something you definitely have grounds to reject. These are the fees that are related to operational or management expenses and should usually be taken care of by the landlord.
Beware of CAM Fees for the Exterior – Another aspect of CAM fees that you should push back against is exterior building maintenance. In theory, the landlord is making money from these buildings through the rent that you pay, so maintenance of this aspect of the property should be paid for by the landlord through the rent you pay.
Review the Bills – If your landlord won’t budge on your refusal or negotiation of certain CAM fees, you can ask to see proof of these expenses. Write it into your lease that you have permission to review these bills to make sure the expenses are being calculated correctly and appear reasonable.
Cap the Increases – Make sure that you negotiate for a cap to how much CAM fees can be raised annually. This could either be a percentage or a stipulated maximum amount. Make sure that you address this specifically, separate from other rent increase clauses.

In order to be prepared to negotiate the best lease possible for your business, it is important to know what you are dealing with in a commercial real estate lease. CAM fees are a major expense you will be responsible for beyond your regular rental payments, so it is important to understand how these work and how to make sure that your portion of these expenses is fair and reasonable. Do the due diligence on how to deal with CAM fees for office space for lease in Kansas City and save your business some money in the long run!

If your business is looking for commercial office space for rent in Overland Park, KS, give one of our commercial real estate agents in Kansas City a call at 913-685-4100 to learn more about the spaces our commercial property management in Overland Park, KS, has available!