Searching, Selecting and Negotiating an Office Lease

When you are a business, either an existing business who is expanding or a startup business just trying to find a home for your business, your core focus is building and growing your business. Now you may be able to google “Office Space For Lease in Redlands” or any other city and find many options to choose from.  But there are many unknowns that may be outside your knowledge such as what type of lease is the landlord offering, rentable square versus usable square feet as well as what concessions is the landlord offering?  So how do I start searching, selecting and negotiating an office lease? All of these are very valid questions but how do you become familiar with these and carve our the best location at the best lease rate?

Tenant Representation

As a business you can hire an experienced commercial broker who Represents Tenant’s and has an experience in negotiating office leases and retail leases for both Landlord’s and Tenant’s.  A leasing broker’s services are generally free to Tenant’s, yep FREE.  That’s because most savvy landlord will provide an incentive for leasing brokers to bring them new Tenant to fill their vacancies.  A landlord has already factored in these cost and are not related to the rate they will offer Tenants.

Rentable SF versus Usable SF = Whatable SF?

In a standalone office building that serves one Tenant, rentable square feet equals the same as usable square feet.  However, in many multi story office buildings there are areas such as common areas, hallways, lobbies, bathrooms and other areas.  Sometimes these “common areas” make up 15% of the total building square footage, this is also referred to as a load factor.  Landlords do not want to lose money on these spaces so they will factor a 15% load factor into the lease, which establishes rentable square feet. See example below.

  • 3,000 usable sf X rate $1.50 psf = $4,500 lease rate (Stand Alone Building)
  • 3,000 usable sf + 15% load factor = 3,450 rentable sf X rate $1.50 psf = $5,175 lease rate (Multi Tenant Office Building)

Lease Terms and Concessions

Leases are binding contracts.  If you or your company sign a lease with a 5, 7 or 10 year term, you and your company are obligated to follow through and pay rent for the entire term whether or not you need or occupy the space.  Generally the longer the lease term, the more generous the landlord will be with the rate, tenant improvements and or concessions such as free rent.  If you seek a shorter lease term, you can expect to pay a higher rate combined with little or zero tenant improvements and concessions.

All these factors above will help you become more familiar when it comes to negotiating an office lease.  More information about free tenant representation by emailing lease@regioncy.com, completing the form on this page or calling direct at 909-709-3781.

Negotiating an office lease

Negotiating an office lease

Benefits of a Virtual Office – Redlands, CA

Virtual Office Redlands, CA

If you work on the go or out of your home but need to establish a professional image and location for your business without the overhead, consider the benefits of a virtual office Redlands, CA. Rather than leasing office space around Redlands or buying an office building for sale in Redlands, virtual office space has many great benefits for small businesses and startup companies.

Benefits of a Virtual Office Redlands

  1.   Downtown Location – A professional image and central meeting place to meet clients and customers.  Most virtual office spaces in Redlands offer a limited use of the conference rooms (usually 2-5 hours per month) that is included in your virtual office lease agreements.
  2.   Low Cost / Low Overhead – Most virtual office spaces in Redlands are around $99.00 per month.  There are no additional charges unless your tapping into the additional conference room use, live receptionist answering your calls and print room use.  There are no additional charges for utilities, furniture, commercial space or janitorial services, which makes a virtual office lease the most low cost and most effective way to create a presence for your business in Redlands.  Entrepreneur has deemed the virtual office one of the best ways to a small business can save money.
  3.   Prominent Corporate Address –  A downtown Redlands business address can play a key role for your business and how your viewed by your customers.  Having your business within a prestigious building or office center in Redlands can give you recognition and play a role in help identifying and locating your business.  You can use this address for your mailing address and use it for all your marketing as well.
  4.   Flexibility – Most virtual office leases provide flexibility from 6, 9, or 12 month commitments.  If you feel the need to upgrade from a Redlands virtual office to additional space, the next step up would be an executive suite in Redlands and can be done seamlessly.

As you can see a virtual office is a great cost effective way for any startup business or existing business to expand their presence within almost any market.

There are few buildings within Redlands that offer virtual office lease programs but the most iconic and desirable building in Redlands that has the most onsite amenities is the Citrus Center, located at 300 E State St.

Virtual Office Redlands

Citrus Center Building Redlands, CA.

Take a tour of Citrus Center by completing the form below