Planning Office Relocation |
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Before you finalise your new office space and sign any lease, ensure that you do not face these two pitfalls: choosing the wrong office space and signing the wrong documents related to occupancy of the space. Here I provide you with six things to consider that will prevent you from making any mistake in either of these two areas. Research the area’s future
Remember that when you sign an office lease, you are making a commitment towards what the space will look like years from now. For this reason, business owners are required to conduct a proper research on the area before finalising it for office relocation. Look at the historical demographic data and at the future projections that will help you paint a clear picture about the area’s future. This will further help you realise whether the location you have decided to relocate to will continue to remain fruitful for your business in future. Don’t fear new space Leasing a new space can be certainly more expensive than renewing the lease of the existing space. Additionally, new commercial buildings come with more generous tenant improvement allowances. However, if your main reason to relocate is to change the way your business functions then it is better to look for a new space than investing in renovating your existing space. Watch total occupancy costs There are 3 components that consists the entire occupancy cost. However, only two components are actually mentioned in the office lease i.e. rent and reimbursements costs that come with the chosen location. There are chances that if the property is available on a lower rent then the cost of reimbursements will be more. Note that the cost depends on the location of the office space as well as taxes and regulations that make it even more expensive. Consider a shorter office lease Over years, businesses have been signing longer leases. Mostly, longer term agreements tend to carry lower costs and higher concessions. Moreover, they even offered businesses with more stability. With the speed at which most businesses function today, you are uncertain about the things you may require five to ten years from now. Hence, signing a shorter lease becomes beneficial. Get some help Office lease is a complicated and expensive agreement a company signs. Understanding the importance of it, businesses should seek professional guidance to ensure that they are making a correct decision. Hiring an attorney will help you review the legal points and ensure that the risks are mitigated.
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