Office Space

When leasing commercial real estate, one of the biggest mistakes people make is committing to a lease without understanding the terms.

The most common types of lease agreements and terms include:

Unlike residential real estate, commercial leases do not follow standard terms. Tenants are responsible for negotiating the terms of their lease agreements.

Tips to consider when negotiating a lease:

• Protect your interests by hiring professionals. A commercial real estate broker can help negotiate your lease terms, including the addition of certain clauses like early-termination terms, sublease rules and assignability (transferring your lease to someone else). Have a real estate attorney review your lease before you sign it.
• Understand costs and fees up front. Most leasing costs are calculated per square foot. However, depending on the type of lease you have, additional costs—like property taxes, insurance, utilities, trash collection and CAM costs for shared areas like courtyards and entryways—might be included.
• Find out what amenities are included. Amenities can make a big difference in what location you choose to lease. Ask about basic amenities (like wiring for high-speed Internet, shared versus private bathrooms and central air) or unique bonuses (like fitness rooms, special partner discounts and security systems).
• Negotiate the length of your lease. Landlords typically favor longer lease agreements, but shorter, 1- to 2-year leases with options to renew give tenants the flexibility to reevaluate how things are going financially after their leases are over. Consider your company’s future growth, and find out your options for expanding in that location.
• Discuss signage rules. Ask what rules and options are in place for your business signage.
• Know that you’ll likely have to sign a personal guarantee. Most landlords will do a personal finance check and require tenants to sign a personal guarantee, saying they are liable if the business isn’t able to pay the rent.

Amata Realty Group can help!

If you’re searching for a new space, expanding or renegotiating a contract, contact Amata Realty Group. Amata Realty Group uses its market expertise to match tenants with office spaces and services that meet their needs. Don’t hesitate to contact us when you need help!

Sources

• http://fitsmallbusiness.com/commercial-real-estate/ https://www.allbusiness.com/what-to-know-before-you-sign-a-commercial-real-estate-lease-1412-1.html
• https://www.thebalance.com/before-signing-commercial-lease-398074
• https://www.sba.gov/starting-business/choose-your-business-location-equipment/leasing-commercial-space
• http://www.forbes.com/sites/groupthink/2015/06/02/negotiating-a-commercial-lease-heres-what-you-need-to-know/#15c6b2f9606d
• http://www.nolo.com/legal-encyclopedia/clb-how-commercial-real-estate-brokers-work.html

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Now that we start a New Year it is important to reflect on our past year’s performance and set a plan for success in the years to come.

Below, please reference PARO‘s End-Of-Year checklist for small businesses. These 6 steps can help your business become successful in 2017:

1. Review accounts receivable and payable
   Accounts Receivable: To ensure that your cash flow is accurate be sure that your accounts receivable is up to date. If a payment is owned collect ASAP, collect in the next year- but file as a cash or accrual basis, or write it off as a loss.Accounts Payable: Be sure to record your bills on a monthly basis. If you do have a system in place review your accounts payable to see if it is accurate.
2. Review you inventory (if applicable)
   It is important to keep an accurate record of your inventory quarterly and if you can monthly is even better. This can help you plan in the next year so you know if you are holding too much or missing out if you are holding to little.
3. Verify 1099 / W2 information and send out forms
   Accurately obtain the personal information from your vendors and contractors to send their 1990s and W-2 forms.
4. Close your books and prepare for tax filing
   Before you reflect on 2016 your books must be closed. Your bookkeeper or accountant must reconcile your bank accounts, credit cards, and credit facilities. Finally, then can you can review your financial year of 2016 more accurately.
5. Review your P&L Key Performance Indicators (KPIs)
   Review your key performance indicators by identifying 2 or 3 indicators that drive your business. Over the course of tracking these indicators you are able to see what areas are doing well. From there you can assess the low indicators to help improve your business.
6. Create a budget for the new year
   Now that you have finally reviewed your financial statements you can plan on working on your businesses’ yearly budget. Since you have gained a financial insight you can budget accordingly.

Click to download PARO’s End-of-Year Checklist

Upcoming Events:

• Stop by for PARO’s Lunch & Learn Event! January 18th at 12pm, 225 W. Washington , Floor 22.
• See more upcoming events

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Finding the right office space can be a tasking feat. Understanding the components of a great office space can get you on your way to the right space for your business.

Onsite management and ownership – Make sure you have a landlord who understands your business and is empowered to help! At Amata we strive to meet your needs and are eager to learn more about your business!

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