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Friday, June 24, 2011

Signing Your Office Space Lease

Many people choose to lease office space instead of buying right off the bat.  The ins and outs of signing the lease, however, can be tricky and difficult to understand if you have never rented this kind of space before.  Many people do not know how long of a lease they should sign for, and wind up committing themselves, and their business, to a longer amount of time than they wanted.  There are many things to consider when you begin to figure out how long you would like your leasing term to be. 
First, landlords like longer leases because they have mortgages that they are continually refinancing.  When it comes time to refinance their buildings, they look for people and companies who have established stability in the building. This means the longer the leases are the better the terms a landlord can reap.  Because of this, landlords generally require a three-year minimum lease.  You will rarely see a one to two year lease available. 
You must be aware that the length of your lease can drastically impact your business in the long run, as an office lease is, most of the time, one of the biggest expenses a business has after the payroll.  If your company has matured and doesn’t plan on expanding the employee base, signing a long-term lease may be a good idea.  However, if you are anticipating a good deal of growth, negotiating your leasing terms may be of high importance to you and your company. 
Despite what some people think, office spaces for lease are not hard to come by.  If you are interested in renting or leasing an office, look into all the specifics before you make your decision.  The success of your company could depend on it.    

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