Are you looking for ways to ensure you’ve found the best office space for your company? Does negotiating with a landlord seem overwhelming? If so, then you need to learn all you can about negotiating a lease for office space in Austin.
Doing so can help you find the perfect fit for your company both now and in the future. It can set you up with tenant-friendly terms, a reasonable amount of rent, and much more.
See below for an in-depth guide on how to negotiate a lease for office space in Austin TX and find the best fit for your needs.
1. Set Yourself Up With the Right Real Estate Advisors
If you set yourself up with the wrong set of real estate advisors, then you’re sabotaging your own chance to negotiate a deal.
Imagine this scenario: you bring in a real estate agent to help you negotiate a potential commercial lease with the landlord of a property they’ve pointed you to.
During the talks, the landlord is surprisingly unwavering with what they’re looking for in terms of lease length, rent, etc. After the fact, you’re shocked to find out that the commercial real estate firm you hired doesn’t just represent you, but also the landlord that you were unsuccessful at negotiating with.
That’s exactly the scenario that you’re walking into with most real estate agents. Most firms generally represent landlords as well, and will only point you towards the properties of those they represent. Doesn’t seem like a good start for negotiations, does it? Equally at issue is consider that you, the tenant, is the smaller party, and one that will only make a transaction every 3-5 years, versus the deep pocket landlord with several buildings, lots of spaces, and leasing to a different tenant monthly, It’s not hard to figure out where loyalties lie,
Thankfully, there are ways to avoid this problem. By using a conflict-free real estate company such as Austin Office Space, you are setting yourself up for successful negotiations. We only ever represent clients like you and never landlords. Even better, we have worked with these landlords over the past 20 years and know their sticking points and their typical gives.
2. Create a Budget
Cost is likely on the top of your priority list, and rightly so. If you’re going to protect the future of your company, then you need to make sure rent makes financial sense both now and in the future.
Start the process by creating a budget. How much do you currently pay for your office space in Austin TX? Are you looking to lower the price from what you currently pay? Are you looking for a larger or more attractive space that can support your growing company (and therefore willing to spend more)? Your annual company budget can help you in your office space budget.
Having a budget will help you in several ways as you search and negotiate for a new office space. First, with a solid budget, we can browse the Austin corporate listings and find options that fit your financial parameters.
Also, a budget can help guide negotiations and help ensure affordability.
3. Know the Conditions for Termination
The termination conditions on a lease are typically unwavering. If you’re intentional about upholding your lease obligations, then you likely won’t run into any situations that warrant a termination of the commercial lease.
That said, you’ll want to have a firm understanding of what those conditions are, which we can help negotiate for you. The last thing your company needs is to be blindsided by a canceled lease.
Don’t worry, in Texas, landlords can’t just terminate a lease on a whim. The only time they’ll consider terminating the lease is when you don’t meet up to your end of an agreement. This could be for things like not paying rent, certain unethical events taking place, or your company becoming a danger to others around it.
4. Ask About Additional Fees
Those of you that have been renting office space for a while know that a commercial lease is never as simple as paying for the agreed-upon price of rent.
There will be additional fees—commonly referred to as “incidentals”—that you will need to pay. Why not get out ahead of these by asking for them in advance.
Such incidentals might include costs like lease renewals, tenant improvements, maintenance for a shared lobby, and so on. Some of these can be negotiated as well!
5. Think About Renovations
There may be some spaces that are in perfect shape when you move into them, but they also may be above your budget range.
It’s okay to walk into an office space in Austin TX that needs a few renovations; you’re likely going to make some aesthetic changes to match your brand anyways.
But who will pay for those renovations? How much of the renovations does the landlord expect you to pay for? If it’s a substantial amount, then would they consider giving you a month or two of free rent? After all, it’s an improvement to their property that they won’t have to pay for. With a long enough term, many landlords will provide tenant improvements at no cost to the tenant. These are highly negotiated provisions, and we negotiate these often on our clients’ behalf.
Negotiate the Perfect Office Space in Austin TX for Your Needs
Now that you have seen several key things to consider when you go to negotiate a new office space in Austin TX, be sure to use this information to your advantage.
Take the time to read this article to learn more about Austin Office Space and why we’re the best fit for your needs. To get started, call us at 512-349-0003 and we will be happy to assist you further.