(Newswire.net -- April 1, 2013) Minneapolis, MN -- J.G.M. Properties, Inc. reveals the top things to watch for before signing an office for lease agreement. Renting office space can be a complicated process for those who are unfamiliar with the process, leasing language and legalities.
- Rent calculation for business office space is quoted either as a flat rate per month, or per square foot annually (divided into twelve monthly payments) most often. Some landlords may also insert preexisting condition clauses into office space for lease contracts that require tenants to restore the space to its original condition and appearance when they move out.
- CAM (Common Area Maintenance) fees need to be paid by tenants in addition to the monthly office for lease rental, and this can vary significantly from year to year.
- Office space for rent may include a modest increase in order to account for inflation in the future, but business owners need to keep an eye out for any leases in which rent increases more than a few percentage points; landlords may sneak large annual increases into the lease.
- Landlords may ask for a personal guarantee from an officer or owner of the company as a part of the process of the office for lease agreement; this protects the landlord in case newer, less capitalized companies default on the lease and then claim bankruptcy.
- While leasing office space, potential tenants need to check whether the landlord pays the property taxes, or is it divided amongst the tenants. As a part of the common “triple net” lease, the tenants are responsible for common area maintenance, building insurance, and property taxes.
- An office space for rent lease that includes a transfer clause does not imply that the tenant can move wherever they like if they choose to sublet or decide to move their business; they may need to locate replacement tenants and they would still need to meet the criteria that their landlord has in place for new renters.
- While leasing office space, people must know about what they can and cannot do with it in order to ensure that there are no restrictions on things which may hinder their business.
A representative of this Minneapolis commercial real estate company says, “Paying careful attention to these seven areas can save even seasoned business owners thousands of dollars each year; many times landlords attempt to have tenants also pay for expenses that may be related to the age and previous lack of maintenance in the building.” By carefully examining their office for lease agreement, no matter what the size and cost, people may be able to find a number of issues, which are often negotiable and can translate into a huge amount of money going back to their bottom line.
J.G.M. Properties, Inc. a small, family owned, commercial management company currently located in Bloomington, MN has released this report presenting a summary of emerging trends in commercial real estate for 2013. JGM’s primary focus has been on office space for lease Minneapolis suburbs.
Cited source: resourcenation.com/blog