Touring office space is always fun for me. However most of my clients would rather be in their office producing income instead of looking at space. Don’t think that this is an insignificant part of the leasing process. Not only are you making decisions about the space but the landlord or their agent is also making assumptions about you and your company.
The negotiation process can take a few weeks. The landlord does not want to waste their time with people that they don’t think will meet their standards to lease in their building. So look the part when you are touring. It will help you when you are negotiating. Also be prepared to have good questions for the landlord. This way they know you are informed and this too helps when it comes time to negotiate.
I have made a list of items that you should look for and discuss while touring office space. By sticking to this list you will position yourself well in the eyes of the landlords and have information that you will need to make informed comparisons between buildings while touring office space.
List For Touring Office Space
Financial related questions to ask during the office space visit:
- What is your asking rental rate is it quote annually or monthly?
- Are Janitorial and trash service included in the rent?
- Is the rental rate a full service rate and if so what do the services include?
- If the rate is quoted as NNN what are the estimated NNN Charges?
- Is the Rate Net of electricity if so what is the estimated electrical expense?
- What is the rentable square footage of the space you are touring?
- What is the core factor for the building?
- What is the total square footage of the building?
- What is the buildings current occupancy rate?
- What is the average construction allowance being given for a five year lease?
- How many months of free rent are being given on a five year lease?
- If the lease is full service. What are your estimated operating expenses?
- Do you charge for parking if so how much for reserved and non-reserved?
Physical Related Questions about the space:
- How long has the space been vacant
- Note the view from the space
- Note the Sun’s position in relation to the space. This can create excess heat in the Dallas summers.
- Does the current design of the space work well with little modification?
- Is the space located with options for potential expansion
Physical related questions about the building:
- How many parking spaces per 1,000 feet does a tenant get?
- What percentage of the allocated are covered and reserved?
- Is the building complient with the Americans with Disabilities Act?
- Where is the parking for visitors?
- Does the building have a health club?
- Does the building have a deli?
- Does the building have security and what are their hours?
- Does the building provide a tenant conference room and are there charges associated with use?
- How does after hours access work?
- What are the hours of operation of the building’s heating, ventilation and air conditioning systems (HVAC)
- How does a tenant activate the HVAC after hours and are there additional charges?
- Is the property manager office in the building?
- Does the property have full time maintenance staff?
- Is there a day porter for janitorial service?
The task for a tenant is to know how all of the puzzle pieces listed above fit into a good negotiation strategy. By employing a professional office tenant representative you will not have to worry. They will use this information and other information sources to position their client to get the benefit while touring office space.