What Are Your Signage Options When Signing Your Office Lease

When you lease or buy commercial office space, you’ll want to advertise your presence at the location in one way or another. When you buy the office space, you will usually have countless options as to signs on and around the premises. However, if you lease commercial office space, there may be restrictions in place concerning placement of signs or even restrictions stating that no signs are allowed and you are basically a hidden entity from those passing by. This is why it’s important to ask about signage options, requirements and restrictions before you sign the lease.

Why Is Signage Important?

First and foremost, you want the proper signage outside of the leased commercial office space advertising your business so customers can find you, whether they are current customers or prospective ones. When you have the proper signage, your customer base will improve as will your business’ income. This type of advertisement is the easiest way to draw people in and a cost-efficient method as well.

Why Might Landlords Restrict the Use of Signs?

There are a few different reasons why landlords may restrict the use of signs by their commercial tenants. First, they may not have the room to allow all tenants to put up signs, especially if there are many office space tenants within the building. Also, there may be city restrictions and zoning laws regarding signage, which wouldn’t be the landlord’s fault but simply something which prevents the tenant from advertising at the building. In addition, the landlord may not want a bunch of signs all over the building and simply restrict signage for that purpose alone. These are some of the more common reasons why landlords don’t want signs on their property.

How Does the Tenant Go About Getting Their Sign Up and Presence Known?

The best way to get your sign posted, whether it is a stand-alone sign only promoting your business or your name on a large sign alongside all of the other office tenants within the building, is to negotiate properly with the landlord during the lease negotiations. Some landlords will be flexible with regard to signage and, in this case, getting your sign posted is not a big deal. However, for other landlords who may be more hesitant to allow signs, you’re going to want to negotiate this factor prior to signing the lease.

If the landlord refuses to allow you to put up a stand-alone sign, see if they would agree to an addition to a sign already posted which has other office space tenants listed on it. This shouldn’t make or break the lease deal, however, if it is that important to you as a tenant, which it should be, try to work with the landlord to get some sort of signage posted. After all, if people don’t know where you are located or new customers can’t come across your business with ease, this will hurt you as a business owner. Negotiation is key so try to work with the landlord to secure some type of signage along with your commercial office space lease.

Office Space

Assignment & Subletting Clauses Are Necessary in Office Space Leasing

Office SpaceThe steps one must take to lease commercial office space are plentiful in number. Once you find the perfect office space to lease, you then have to delve into the lease terms and negotiations to ensure that the arrangement is beneficial to you, the tenant. The commercial lease has many terms to read through and there are certain clauses which must be included in order to properly protect you as a tenant. Two clauses in particular which are a must when it comes to lease inclusion include the assignment clause and subletting clause.

When you enter into a lease, you never know what the future may bring. Most business owners would like to believe that they will be in the leased premises to the end of the lease term but this is not always the case. Instances may arise where exiting the commercial office space ahead of the lease term expiration is a necessity. This is where assignment and sublease clauses will come in handy.

Understanding Assignment and Sublease Clauses

With both of these clauses, the current tenant may have another tenant move into their position under the current lease. With an assignment, the tenant will assign the remainder of their lease term to another tenant. From that point forward, the initial tenant is no longer involved with the lease agreement. As for a sublease situation, the initial tenant will have a new tenant take their place in the lease but the initial tenant will still be responsible for any payments which the landlord does not receive from the subletting party. In general terms, an assignment clause is more favorable to a tenant than a subletting clause as it allows the tenant to be done with the lease once and for all as soon as the new tenant enters the picture.

How the Inclusion of These Clauses Will Safeguard the Tenant

Both of these clauses will safeguard the tenant by providing them with a way out of the lease agreement, in some form, should they need to move out for any reason. No business owner expects that they will have to leave prior to the lease term but there are certain instances which may occur that make it necessary to assign or sublet the remainder of the lease to another party. When the clauses are included within the lease, this provides an option for the tenant, if it is needed.

Landlord May Insert Various Requirements in the Assignment and Sublease Clauses

There may be certain specifications included within these clauses to help protect the landlord’s financial security should an assignment or sublease take place. The landlord may require that the new tenant is financially secure and will be able to pay rent when due. There may also be some added fees that the current tenant must pay to the landlord in order to ascertain the financial stability of the new tenant, such as fees for credit checks, etc. All of these factors can be discussed during lease negotiations to ensure that both parties are safeguarded in the arrangement.

Always review your lease prior to signing it and make sure that an assignment and/or sublease clause is present and will benefit you as the tenant.

Steps For Using Financial Analysis Results In Negotiations

There are many ways to negotiate when it comes to commercial office space leases. Financial analysis is one tool which will help in your negotiations with current or prospective landlords. The financial analysis is the process by which you consider all of the costs associated with the lease and then use a financial program to come up with an end figure detailing how much the lease will truly cost you as a commercial tenant. It is these figures which will help you in the negotiation phase of commercial office space leasing.

Why You Need Financial Analysis for Negotiations

Negotiations for commercial real estate leasing are time-consuming and involved in nature. You are not simply renting a home or an apartment, you are securing an office space lease which often carries with it a lengthy lease term. There is plenty to discuss during commercial leasing negotiations and large amounts of money at stake. Therefore, you want to be sure that the negotiations work well in your favor, the tenant. Financial analysis figures will help to show the landlord what you will be paying, outside of simply the base rental payments.

There are many other costs to consider with commercial office space leasing and you want to bring such costs to the attention of the landlord. This will also be a beneficial path to pursue, since you want to determine what your landlord will pay for and what you will be responsible for paying on your end of the tenancy. A financial analysis will lay it all out on the table and ensure that no stones are unturned during the leasing negotiation process.

Steps for Using Financial Analysis Figures During Negotiations

When a landlord is figuring out how much to charge a tenant for rent, they look at the effective rental rate. This rate takes into consideration factors such as market rental rates seen in comparable buildings, building operating costs and total transaction costs. With these three encompassing factors in mind, the landlord comes up with the rental rate. How do tenants go about reducing the rental rate asked for at negotiations? By completing a financial analysis of their own. By doing so, the tenant can show that certain aspects should be less, or more, in cost to get the negotiations to favor their side and, ultimately, result in a lesser amount on the overall rental rate.

To have your points duly noted, use a proper financial analysis program to come up with the figures. This will hold the most weight when you are in the negotiation phase with your landlord as you have concrete figures to show for your point of view. Also, have a tenant representative along with you for the negotiations. It’s important to be properly represented so that you are not going it alone in negotiations with the landlord. Lastly, be reasonable with your requests, especially if the office space is a highly coveted one and there is a bit of competition as to other prospective tenants wanting the same location as you. The landlord will be less likely to be flexible if there is another business owner out there who will pay the asking price for the office space lease.

Financial analysis is extremely important in commercial office space lease negotiations and you want to make sure you sit down at the negotiation table with financial analysis paperwork in hand and a tenant representative by your side.

chicago office space listings

Office Space: Tips For Obtaining A Flexible Office Space Lease

chicago office space listingsCommercial office space leases are often long in lease term length and strict with regard to getting out of the lease prior to the lease term expiration. Many business owners who are eager to lease office space feel as if they have no choice but to accept the lease terms as-is and just know that they must accept a lengthy lease if they want to gain office space. This is not always the case. Although landlords may be the ones to structure the lease, the lease terms are not ones which are absolute. There is always the option to negotiate lease terms and make them more flexible for the benefit of the tenant. The following will offer some tips for obtaining a flexible office space lease.

Request a Shorter Lease Term

Just because the initial lease terms are on paper doesn’t mean that you can’t request a shorter lease term. Many landlords will opt for longer lease terms as it ensures that they will have a tenant in place for years in the future and provides them with security. However, there are times when the landlord may agree to a shorter lease term. You may have to pay a bit more for an office space lease which is shorter than a 5-15 year range, however, if you need the flexibility with regard to length of the lease, it may be worth paying a bit more to obtain such flexibility.

Ask for a Renewal Clause

Suppose you feel as if you will want to stay in your office space for many years to come and don’t want to risk being forced out when your lease term expires. The easiest way to gain security in this regard is to request that a renewal clause be added to the leasing contract. This will give you a documented right to renew your lease should you desire to do so in the future. It’s always good to have this type of safeguard in place and absolutely have it in writing.

Assignment and Sublease Options

There may come a time during the commercial tenancy where you have to vacate the lease ahead of the expiration of your current lease. Having assignment and sublease options in the contract will ensure that you will be allowed to assign or sublet the remainder of your lease term without penalty.Oak Brook

Inclusion of a Termination Clause

As with the prior section, should you need to move your business out of the leased office space prior to the conclusion of the lease term, you want to be able to do so without being penalized. Sometimes business owners don’t want to be responsible for subleases or assignments and this is where a termination clause will come in handy. Request that this lease term is also added to the contract and it will provide a flexible option for you as a commercial office space tenant.

Office space leases don’t have to be strictly structured nor do they have to benefit the landlord alone. Request that terms be included within the lease which will safeguard you as a tenant down the road.

Elgin Office Space

Office Space In Elgin

Elgin Office Space

Elgin, Illinois, situated 35 miles northwest of Chicago, is a city which offers options for business owners of various sizes. This is especially true for those who wish to lease office space there. Elgin is located in both Kane and Cook counties and has a population of approximately 110,000 individuals, a size which is quite beneficial for business owners who open their doors in Elgin.

New Housing in Elgin Means More Customers for Businesses

In the past few years, Elgin has seen a surge in new homes, townhomes and condos being built. With the large population base and more housing being created for individuals moving to town, this is a big pull for business owners and a reason why many businesses come to Elgin to lease and buy commercial office space.

Plentiful Transportation Options

Due partly to the fact that Elgin is one of the larger cities in Illinois, the transportation options are readily available. There are three Metra stations in Elgin, including National Street, Elgin and Big Timber Road, along with the Pace bus line which runs through the city at various stops. Amtrak may be planning a future stop in Elgin as well in 2015. For those traveling by car, Elgin is surrounded by various interstates, specifically I-90 and I-355, as well as a vast amount of local roads running through town.

Retail Stores, Restaurants and Entertainment Options in Elgin

There are many wonderful shopping options in Elgin. From well-known national retailers such as Payless Shoe Source and Family Dollar to more specialized local shops including Fat Cat Custom Guitars and Shockey Jewelers, Elgin offers much in the way of shopping. Dining establishments are also wide and varied when it comes to national chains and local restaurants. Some of your dining options in Elgin include Chooch’s Pizzeria, Crave Deli, Dunkin’ Donuts, Gasthaus and more.  

For entertainment, Elgin offers the Elgin Symphony Orchestra, Elgin Public Museum and plenty of city parks and golf courses. Whether you crave indoor culture or outdoor activities, Elgin has quite a bit to offer its residents, business owners and business employees. There is also the Grand Victoria Casino in Elgin, for those who like to do a little bit of gaming and indulge in casino dining and entertainment.

Why Your Business Should Lease Office Space in Elgin

As a business owner, you have many options when it comes to leasing office space and which city to do so within. Elgin is a strong contender as it has plenty of amenities to draw people in, a large residential base, is located in an easy to reach spot and is continually expanding. Whether you are searching for a small professional office to fit a few people or want a large corporate headquarters, the city of Elgin can accommodate you. Leasing office space gives you the opportunity to ensure that your chosen spot is a good fit for your business and that the end result is a large client base which will provide individuals to buy your products and/or utilize the services offered by your business. Elgin is a good choice, no matter what type of business you run or how large your business may be.