Office Space: What You Should Know About Relocation Provisions In Leases

The office lease is one which contains many terms. Some are in there for the benefit of the landlord while others may help out the tenant in one way or another. One which falls within the former category is the relocation provisions term. This is sometimes found in a commercial office space lease and allows the landlord to relocate the office space tenant to another office space location within the building or office park should the landlord need to, or want to, accommodate a new tenant looking for larger office space. When this does occur, although not that often, it usually involves a situation where a company wants to lease a larger office space, such as an entire floor of an office building, and there is already a smaller company in place, which ultimately doesn’t need or use all of the space.

Why The Landlord Wants This Lease Term Included

A commercial landlord likes to have this type of term included within the lease because it is a safeguard for them, and a monetary one at that, should an interested party want to lease a larger office space which could be available should the landlord move a current tenant into a different space. This type of lease term enables the landlord to rent out more of their office space and gain  more income simply from doing so.

Although this is a standard lease term, it is one which not all landlords are able to have included due to some resistance from office space tenants at the time of the lease signing. Should the landlord be successful in having the office space tenant agree to this term, the landlord will be responsible for all costs associated with the tenant relocation should the landlord opt to put this lease term into play.

Why The Tenant Doesn’t Want This Lease Term Included

Frequently, an office space tenant will not want this type of lease term included within their commercial office space lease. Those who lease office space, usually choose their office space of choice due to its location, size, view and more. After all, why would the tenant want to be moved around after they carefully select their office space? However, during the negotiations and prior to signing the lease, this term often comes up in conversation and has to be decided upon at that point.

How an Office Tenant Can Have This Term ExcludedOffice Space

Most commercial tenants would want this term excluded. Therefore, it’s important to review the lease terms thoroughly to make sure relocation provisions are not included or, if they are, this can be discussed during lease negotiations with the landlord prior to signing the lease. By removing the relocation provisions term from the lease, you will ensure that you will not have to move to another spot during the lease, simply because the landlord wants to make more money off of an additional tenant who may want to occupy your space. Should the landlord not agree to omitting the relocation provisions term, just be sure that it is as fair to you, the tenant, as possible and that you know what could happen in the future should the relocation provisions term be put into play.

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.

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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.

Leasing Commercial Office Space In Schiller Park

Schiller Park is a smaller village located outside of Chicago in Cook County. With 11,793 residents calculated during the 2010 census, this suburb is small enough to exude a small-town feel but large enough to accommodate businesses of all varieties. Leasing an office in Schiller Park will put your business less than 15 miles away from downtown Chicago, which offers ease of access for those in the city to reach your business.

Transportation Options in Schiller Park

There are quite a few transportation options for individuals who live and work in Schiller Park. Transportation by car is easily achieved when your business leases an office in Schiller Park. Due to its suburban location, one won’t face the driving and parking issues which they do in the downtown Chicago area. With that said, Schiller Park is close enough to Chicago that it sees all of the public transportation options available to those who live and work in big city. Pace bus routes and a Metra stop in Schiller Park make public transportation a breeze for residents, customers and employees. You will also find taxis available as well.

Amenities Are Plentiful in Schiller Park

Schiller Park is home to many wonderful amenities for those who live and work in town. Dining establishments such as Great Escape, Mantra and Hubcaps will keep the Schiller Park residents and business employees well fed while shopping opportunities exist at many area stores, including those local to Schiller Park. For those seeking recreational activities in Schiller Park, the village offers great amenities such as the recreation center, activities center and water park. There are also plenty of parks and recreation leagues in Schiller Park to choose from as well.

Why Your Business Belongs in Schiller Park

The aforementioned items provide you with some insight into why your business belongs in Schiller Park. The location is convenient, transportation options are available and the amenities are great in number throughout town. You will also find that the customers who will utilize your services and buy your products, will be from both in the village and surrounding areas, too. There are many surrounding towns in close proximity which is ideal for the business owner who wishes to draw in out-of-town clients. You will find that by leasing commercial office space in Schiller Park, you will have access to many beneficial things in addition to plenty of customers who live in and around Schiller Park.

Leasing Options Await Your Business

Some business owners who are eager to lease office space may wonder if their business will be welcome in Schiller Park. The answer to this question is, “Yes!” Schiller Park leasing options exist, no matter whether your business is industrial in nature, a small corporate office or some other type of business. The leasing opportunities exist in Schiller Park, no matter what your company may do with regard to industry. Although certain areas will be zoned to suit particular businesses, office space is readily available for lease within Schiller Park.

Start looking for that ideal Schiller Park office space today.


Is It Time to Move Your Commercial Office Space?

As businesses grow, they outgrow their current space; as time passes, needs change. Your office space should meet those needs whether they are getting larger or smaller. When is it time to make this decision? Let’s start by asking a few, simplified questions to help us answer the big question: Is it time to move your commercial office space?


Does your current office space meet your projected long-term needs? If not, put a tally in the move column. Whether you are expanding or consolidating, your commercial office space must agree with projected work demands. If you bottleneck here, you hinder earning potential.


Location, location, location, right? This element is true for your financial requirements just as largely as your client base. Long, arduous commutes are a deterrent for new hires and a hindrance for retention, so distance effects your employees as well. For this matter, consider parking. Difficulties with parking can lead to unwanted client and employee frustration.


Leases are complicated. How can you be certain that your rental agreement is secure? What if you get to the end of your lease and your property owner wants to increase your rates? What if your office rental is out-bid on? These are all very realistic concerns. The best answer is to get a commercial real estate expert who can work in your favor to put limitations and restrictions on your lease.