Posted on December 17, 2018 by Genet Group
Are you planning on expanding your business and looking for a bigger space for your office or company?
Finding an area that supports your team and allows your business to grow and thrive, is not an easy task, but with the help of Genet Property Group, anything is possible. You’ll need to consider several factors before leasing office space, so keep these pointers in mind, and you’ll get along just fine.
– Finalize the place where you want your working space. Ideally, your office should be located at a convenient location that’s easy for your clients, employees, and partners to commute to on a frequent basis. Additionally, the selected area should have access to sufficient security, parking spaces, and food options. Furthermore, make sure your surroundings adequately portray professionalism and have access to public transport, if needed by employees.
2. Facilities and Resources
– Make sure your office space has sufficient facilities to carry out your official activities efficiently like a good internet connection, multifunctional areas like conference, training and meeting rooms.
Moreover, employees generally prefer to work in those places which provide numerous amenities to offer either inside the office premises or someplace close by. These amenities can include restaurants, parking space, high-speed internet connection, a gym, kitchen, cafes, and other areas. These could also benefit you when you want to conduct a meeting session outside the office.
– In today's’ digital age, there is the utmost need for reliable and high-speed internet connection, landlines, and postal service facilities to get in touch with your partners and clients. Before leasing office space, make sure you’re getting all these connectivity facilities. Other things to consider are high-quality cabling, fax and photocopy machines, air-conditioned rooms and a refreshing office design with furniture and décor that portrays an official look and reputation of your office space.
– It is highly relevant to choose an office space that is under some surveillance and has proper security arrangements. Make sure your office space has deployed one or two security guards or law enforcement officers to monitor any illegal activity surrounding the building. Keep in mind, you and your team will be spending a big part of the day at the office space, so make sure the vicinity is a secure and safe place.
– The cost is probably the most important factor you consider while choosing new office space. An affordable area can help you save the right amount of money that you can spend on other activities like hiring a new employee or buying new equipment. Check the local market rates for similar properties and then make a final decision on which will work best for you.
Genet Property Group
We have over 30 years of real estate experience in leasing, sales, acquisitions, and property management. We currently manage over 1.8 million square feet of space including residential, commercial, retail, and warehouse properties. With our expert staff, well-sustained properties, and flexible lease contracts, Genet Property Group is the premier location for office and warehouse space in South Florida. Management can make or break the leasing experience, and that’s why we make it a top priority.
Posted on December 17, 2018 by Genet Group
There are basic types of leases revolving around net or gross rent calculations. More often than not, the gross lease option is when a tenant pays a one lump sum for rent, and the landlord pays for expenses. The net lease option is when the renter has a lower base rent with costs paid by the tenant. However, a modified gross lease is the best of both worlds.
Typically, the gross lease is where the rent is all-inclusive. The landlord is responsible for all or most expenses included with the property like taxes, insurance, and maintenance. If negotiating a gross lease, one of the more important topics should be focused around the janitorial services. Inquire about how often they are provided, how extensive the services are, and if the company has a good reputation. Ultimately, the tenant is gaining a massive benefit with this type of lease because they can focus on growing their business, while the landlord assumes all responsibility for the building.
Lower base rent is calculated here along with the added expenses of real estate taxes, property insurance, CAMS, and more. Several different kinds appeal to tenants and landlords alike:
• Single Net Lease – Pay base rent and portion of the building’s property taxes based on the amount of space being leased by the tenant. Landlord covers all other building expenses.
• Double Net Lease – Everything included in Single Net Lease, now including property insurance. Landlord will cover the costs for structural repair and CAM.
• Triple Net Lease – Tenant is responsible for rent, property taxes, insurance, and CAMs. It’s one of the more common agreements for freestanding buildings and retail space.
The gross lease is more geared in favor of the tenant, and the net rent for landlords. The modified gross option offers a one lump sum option while also including any or all nets like property taxes, insurance, and CAMs. It is sought after less often than the agreements mentioned above, but it provides the advantage of keeping the lease rate the same even if the net costs increase. However, if they decrease, the landlord will see the benefits more so than the tenant.
Whichever option you choose, be sure to educate yourself on the expenses you can afford. Many factors like location, size of space, etc. go into the cost of renting the unit, and growing businesses need to keep their eyes on the prize when signing into a new lease.
Posted on December 17, 2018 by Genet Group
Before committing to leasing commercial space, consider all the possible roadblocks you may encounter. Don’t sign on the dotted line without asking yourself a few questions about the kind of lease you’re getting involved in. Of course, there are several more, but starting with these essentials will put you on the right track.
Have I Read and Understood Everything?
Although it may seem a bit redundant to say, reading over every paper in the packet is crucial. Most landlords may use general terms and conditions, but if you have specified specific negotiations, you need to make sure they’re accounted for within the documents. Keep an eye out for any contradictions within the contract that could negate what you’ve tried to negotiate.
Do I Understand the Terminology?
If you haven’t acquired a lawyer to look through the documents for you, be sure to understand exactly what you’re reading through. The Common Area Maintenance portion of the papers is one of the most confusing, and without the proper knowledge, could have you in a whirlwind. Be sure to note that the percentage of which you pay the CAM is based on the size of the building rather than how much of the building is being rented.
Is My Lease Assignable? Can I Obtain a Sub Lessee?
If you sell the business and are looking for someone else to take over the lease, then be sure to clear the air before the landlord terminates your contract. Typically, it would be another business working in your leased space under your terms. Although you will pay the lease, the lessee will pay a portion to help out with the costs. If you haven’t discussed it with your landlord but are looking to make that decision in the future, speak to your landlord to attempt negotiating those terms.
Does the Lease Have an Arbitration Clause?
This piece of the lease states that any disputes between parties will be settled in arbitration versus litigation. Most landlords will insert this clause for some reasons. It is much more cost effective to resolve issues arbitrarily rather than with lawsuits and to pay hourly for a lawyer. Although there are pros and cons to both sides, consider which option will work best for you long-term.
With over 20 years of real estate experience in South Florida, Genet Group knows how to negotiate, so everyone wins. Our goal is to ensure that our clients are receiving the best possible agreement for their business to succeed. We instill a hands-on management approach to how we conduct business, that’s what has kept us as one of the leading property groups in South Florida. If you are in the surrounding area and are looking for expert property managers, give us a call at (954) 572-9159.
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