Top 10 Items to Negotiate in Your Next Office Space Lease
Filed Under Business and Life, Market Info · Tagged: how to negotiate your office lease, lease negotiate, office lease negotiations, things to consider when leasing office space, Top 10 Items to Negotiate in Your Next Office Space Lease
Another brilliant post by the group from ROFO. Check out their blog here!
1. Move in Date
If a space has been vacant for a long time, the owner is usually more willing to deal. If you can’t meet the landlord’s rent needs, but are willing to take the space right away, the landlord might be more willing to bend on the rent.
2. Monthly Rent
The common rule of thumb is to try and negotiate the asking rent down 5-10%. The leasing market gathers its pricing data from market comparables which are other companies signing leases. Data is currently traded among brokers so they can make sure their clients are receiving the most appropriate rental rate and terms. If you don’t have a broker or if your broker isn’t aware of the most recent deals completed, then a barometer of a 5-10% discount is a fair goal.
3. Tenant Improvements
If the space is not ideal, try to negotiate so the landlord is responsible for all reasonable changes to the space. The longer term lease you are signing, the more willing the landlord should be to perform significant improvements.
A good rule of thumb is if you are looking for short term space, then gear your search to spaces that need almost no improvements. If the term is below two years, even asking more new paint and carpet might be a too much to ask for.
4. Free Rent
The amount of free rent depends on the current market conditions, your financial statements, and the term of the lease. With Shorter term leases (less than 2 years) it is tough to negotiate free rent because you are only there for a short period and the landlord wants you to paying the whole time. If it’s a five year lease, 3-5 months of free rent would not be unusual. Most justifications for free rent are that free rent is covering the expensive moving costs and other expenses associated with the move (e.g. stationary, wiring the space etc). If you are a start-up without revenue, the landlord will be hesitant to provide rent abatement because of their concern that you may default after 6 months and they will have provided free rent for 3 months. You may be able to negotiate the free rent after fulfilling an agreed upon minimal paid rent period. It doesn’t hurt to try!
5. Term
Landlords prefer a longer term lease because a space, on average, sits for 5 months vacant between leases. The less down time, the better it is for the landlord’s bank account, and so he will want a longer term agreement. What does this mean to you?
If you are comfortable signing a 3-5 year lease, you can get more aggressive on the economics (rent below asking, free rent, more improvements etc). One way to avoid a longer term commitment is to get termination rights written into your lease. This typically includes a rent penalty (3-6 months of rent), plus the payment of unamortized commissions and tenant improvements.
6. Furniture
Make sure you specify up front whether the furniture is going to be left after your lease expires and if you will be responsible for purchasing the furniture. It is expensive to move and a hassle a small business doesn’t need! Your best bet is to negotiate free use of the furniture and the right to purchase it at the conclusion of the lease should you want to take it with you to your next location.
If you need to purchase furniture, please see Rofo’s Recommended Furniture Suppliers to do it affordably!
7. Upfront Costs
Larger companies have the ability to get landlords to contribute to the upfront costs of the move process. This can only be negotiated during times where the market has a lot of vacancy. Small business typically can accomplish this same concept through free rent (see #4 above).
8. Security Deposits
Security deposits are typically a function of how much money a landlord will spend to get you to move into the space (commissions and tenant improvements) vs. how confident they are in your ability to pay rent (financial statements review). We have seen security deposits range from 1-12 months depending on the situation. A good rule of thumb is 1-3 months of security deposit for a small business who needs only minor improvements.
9. Commissions
If you are not represented by a tenant rep broker, you can try to use this as a lever to deduct the proposed fee amount from your total rent obligation. This is rare and our advice is to hire an agent to make sure you do not leave anything on the table in your negotiations (ie. Free Rent or Construction Allowance).
10. Options
Renewal Options, Termination Options, and Expansion Options all should be negotiated. These options provide you with the most flexibility and control of your office lease.
For short term or small office space less than 600 sf click here!
Toronto Sublease Statistics – May 2009
Filed Under Market Info · Tagged: commercial real estate market information toronto, commercial real estate news toronto, LinkedIn, office space news toronto, real estate market information, toronto commercial real estate news, toronto office market, toronto office space news, Toronto Sublease Statistics - May 2009
Toronto Sublease report
Colliers International (my brokerage) just came out with a sublease market report. Although this applies to larger offices, if you are thinking of subleasing your space you should gain some insight from reading this.
Also refer to this tips sheet on leasing your new office.
For short term or small office space less than 600 sf click here!
How do I hire an office broker?
Filed Under Market Info · Tagged: advice on finding office space, choosing commercial real estate representation, hiring a broker, How to I hire an office broker?, office leasing
Awesome post from my friends at the ROFO Blog. Check them out here!
1. How active is the broker in the marketplace?
If the commercial real estate broker is active in Carlsbad, but has never worked in San Diego, where you’re looking for office space, it could be a mistake to hire him/her. If they can prove to you that they have the ability to find the tough to find spaces and get information on the most recent transactions. If they can pass both of these hurdles and seem qualified, an out-of-town broker can provide the right level of service. If not, ask them for a referral to a local broker.
2. How long has your broker been in the biz?
Less experienced brokers may work hard but may expose you to common mistakes. Industry veterans can quickly make you aware of the pitfalls and help you avoid them. After about three years in the business, a broker is usually seasoned enough to have learned the tricks of the trade.
3. Check out references
Ask to speak to recent clients who can vouch for their diligence and honesty throughout the process. Ask about their negotiating skills and time spent on the process.
4. Are you looking for a Specialist?
Many brokers specialize in types of firms or industries. If you can find the broker who specializes in your industry (biotech space, retail, restaurants, etc), you may get a leg up in the negotiation.
5. Conflicts of interest
Some brokers might work for many landlords throughout the city. If they do, at times their fiduciary duty is challenged when they represent both parties. Most brokers are ethical and this would not create a bad situation, but exceptions do exist.
For short term or small office space less than 600 sf click here!
Spadina Heritage Video
Filed Under Business and Life, Market Info · Tagged: heritage, LinkedIn, office tenant, queen street, spadina
If you have 30 minutes to kill, you’re a history buff, or you’re an office tenant at Spadina Avenue and Queen Street that wants to know more about the area, check this out.
One of Toronto’s main arteries, Spadina Avenue has a rich cultural history that includes being the industrial heart of our city, and home to our Chinese and Jewish communities.
For short term or small office space less than 600 sf click here!
Small Space – Commercial Real Estate Toronto
Filed Under Available Office Space Toronto, Brokers Letters, Office Space Deals, Temporary or Shared Offices · Tagged: cost of downtown toronto space, leasing companies downtown toronto, LinkedIn, office lease price toronto downtown, office lease prices toronto, office rent downtown toronto, office rent toronto, office rentals toronto, office search toronto, office space for rent in toronto, office space for rent toronto, office space in toronto, office space in toronto price, office space price in toronto, Office Space Toronto, offices for lease toronto, rent office toronto, small office space toronto, Small Space - Commercial Real Estate Toronto, sublet office toronto, toronto loft spaces for rent, toronto office lease, toronto office leases, Toronto office real estate blog, toronto office rent, toronto office rentals, Toronto Office Space, toronto offices for lease, toronto recent listings
Small Office Space - Toronto
Please note the attached office space is not listed with OfficeSearchToronto.com but call us first at 416-992-9869 or E-mail Me for floor plans and additional information. If you want to sort out only the available office space listings on this blog, click the link “Available Office Space Toronto” in the Categories section on the bottom right.
Here is a link to a previous “small space” post.
Other Available Office Space
For short term or small office space less than 600 sf click here!
Office Deals Downtown Toronto
Filed Under Available Office Space Toronto, Brokers Letters, Office Space Deals · Tagged: Commercial Real Estate Toronto, LinkedIn, Office Deals Downtown Toronto, Office Space Toronto, Sublease office space toronto, toronto commercial office space, Toronto Commercial Real Estate, toronto executive office space, toronto office space for rent
Office Space Deals
OfficeSearchToronto.com tracks available office space across the GTA. Want a survey or availability report somewhere else in Toronto? Are these space too big? Call us at 416-992-9869 or E-mail Me!.
For short term or small office space less than 600 sf click here!
Landlord GTA Commercial Real Estate Listings
Filed Under Available Office Space Toronto, Landlord Listings, Market Info, Office Space Deals · Tagged: cost of downtown toronto space, leasing companies downtown toronto, LinkedIn, office lease price toronto downtown, office lease prices toronto, office rent downtown toronto, office rent toronto, office rentals toronto, office search toronto, office space for rent in toronto, office space for rent toronto, office space in toronto, office space in toronto price, office space price in toronto, Office Space Toronto, offices for lease toronto, rent office toronto, small office space toronto, sublet office toronto, toronto loft spaces for rent, toronto office lease, toronto office leases, Toronto office real estate blog, toronto office rent, toronto office rentals, Toronto Office Space, toronto offices for lease, toronto recent listings
Toronto Landlord Listings - Commercial real estate
Please note the attached office space is not listed with OfficeSearchToronto.com but call us first at 416-992-9869 or E-mail Me for floor plans and additional information. If you want to sort out only the available office space listings on this blog, click the link “Available Office Space Toronto” in the Categories section on the bottom right.
Office Space – Landlord Listings GTA
For short term or small office space less than 600 sf click here!
Wired Wednesday TO – #WiredWednesdayTO
Filed Under Business and Life, Featured Office Space, Market Info · Tagged: #WiredWednesdayTO, digital toronto, homestars, LinkedIn, Spreed, toronto startup, tripharbour, website startup, Wired Wednesday TO, zoocasa
www.meetup.com/WiredWednesday
There were some great companies, thoughts and insights presented at #WiredWedTO yesterday. Thanks to RedWire.com (@erin_bury and @sarahprevette) for organizing such a great event!
www.redwirenation.com
Red Wire Nation – Through our comprehensive web application, we facilitate networking between entrepreneurs and members of the global business community. We provide users with a platform for collaboration and knowledge sharing.
spreedinc.com
David Coleman got the show off with what I thought was a great presentation… he wasn’t so sure at the end of the night but we are always to critical of ourselves.
Spreed Inc – Spreed delivers your existing content to mobile phones and develops unique tools to increase revenue and improve engagement. Awesome App to push content to your I-phone or Blackberry.
Homestars.com
Brian Sharwood came next. HomeStars philosophy of providing reviews by the people, for the people is great. This is going to be huge in every industry, particularly for construction. They’re on it!
HomeStars.com – HomeStars.com is a growing online community of homeowners and home improvement companies throughout Canada and the U.S. HomeStars offers a free service for homeowners to find reputable renovators, repairmen and retailers by searching its database of almost 2 million companies. Homeowners write reviews based on their home improvement experiences – both good and bad. This builds a collective knowledge base that is invaluable in helping homeowners make better decisions on whom to hire.
www.zoocasa.com
Saul Colt has a title that fits well. The Head of Magic and Zoocasa. These guys are going places. If you are a residential agent that hasn’t seen this site you are behind the itmes. Watch out MLS.
Zoocasa.com – Our goal in creating Zoocasa is to give all people searching for a home in Canada the ability to easily find homes for sale based on the things they value the most. We think we are on our way to doing that!
www.tripharbour.ca
Stuart MacDonald was the final speaker. I was wondering how the headliner would stack up against the competition. He was fantastic. If he had a title like Saul I would call him the Chief Passion and Ambition Officer (CPAO). Here’s his BIO for the Meetup.com site:
Stuart is the CEO and Founder of Tripharbour Limited, operator of Tripharbor.com and Tripharbour.ca, two new, online cruise vacation ecommerce and community sites. Stuart brought Expedia to Canada and started Expedia.ca in his spare room. He ended up moving to Seattle as SVP/chief marketing officer for Expedia.com, as well as running the US packages business. Now back in Toronto, he is a blogger, passionate about what Web 2.0 means for business and society,and a co-founder of the popular mesh technology conference.
TripHarbor.com – was created for cruise vacation fans by cruise vacation fans. Really. Cruise vacation planning used to be somewhat of a trial and error process – that is to say, you went on a cruise, and sometimes you liked it, and sometimes you didn’t. We thought – there has to be a better way. But there wasn’t. So we’ve created one.
For short term or small office space less than 600 sf click here!
Small Office Space Available in the Toronto area
Filed Under Available Office Space Toronto, Brokers Letters, Market Info, Office Space Deals, Temporary or Shared Offices · Tagged: Add new tag, cost of downtown toronto space, leasing companies downtown toronto, LinkedIn, office lease price toronto downtown, office lease prices toronto, office rent downtown toronto, office rent toronto, office rentals toronto, office search toronto, office space for rent in toronto, office space for rent toronto, office space in toronto, office space in toronto price, office space price in toronto, Office Space Toronto, offices for lease toronto, rent office toronto, small office space toronto, sublet office toronto, toronto loft spaces for rent, toronto office lease, toronto office leases, Toronto office real estate blog, toronto office rent, toronto office rentals, Toronto Office Space, toronto offices for lease, toronto recent listings
Small Office Space Available in the GTA
Please note the attached office space is not listed with OfficeSearchToronto.com but call us first at 416-992-9869 or E-mail Me for floor plans and additional information. If you want to sort out only the available office space listings on this blog, click the link “Available Office Space Toronto” in the Categories section on the bottom right.
Richmond Street, Bay Street, Adelaide Street, University Avenue, Yonge Street, Dundas Steet
Other Available Office Space
For short term or small office space less than 600 sf click here!
Commercial Real Estate – Downtown East Office Space
Filed Under Available Office Space Toronto, Brokers Letters, Market Info, Office Space Deals · Tagged: Adelaide Street East, Berkeley Street, Church Street, Commercial Real Estate - Downtown East Office Space, cost of downtown toronto space, King Street East, leasing companies downtown toronto, LinkedIn, office lease price toronto downtown, office lease prices toronto, office rent downtown toronto, office rent toronto, office rentals toronto, office search toronto, office space for rent in toronto, office space for rent toronto, office space in toronto, office space in toronto price, office space price in toronto, Office Space Toronto, offices for lease toronto, rent office toronto, small office space toronto, sublet office toronto, The Esplanade, toronto loft spaces for rent, toronto office lease, toronto office leases, Toronto office real estate blog, toronto office rent, toronto office rentals, Toronto Office Space, toronto offices for lease, toronto recent listings
Commercial Real Estate Downtown East Toronto
Please note the attached office space is not listed with OfficeSearchToronto.com but call us first at 416-992-9869 or E-mail Me for floor plans and additional information. If you want to sort out only the available office space listings on this blog, click the link “Available Office Space Toronto” in the Categories section on the bottom right.
Church Street, Berkeley Street, King Street East, Adelaide Street East, The Esplanade
For short term or small office space less than 600 sf click here!
