Choosing an office space for lease can be a tough decision. In addition to finding the prime location, you want to be sure that your office space has all of the amenities and proper layout that you desire. You should also be certain that the lease is a financially sound decision for you and your company. It often takes a thorough financial analysis to determine if the lease you are intending to sign will be one which is best for you. The following will highlight some ways in which a financial analysis can play a key role in the decision-making process, and which office space to lease.
Helps To Highlight the Various Leasing Costs
When you complete a financial analysis you are laying out the individual leasing costs. Items such as base rental pay, operating expenses, operating expense increases, parking fees, common area maintenance fees and more will be detailed and allow you to get a better sense as to what the total cost to you, the tenant, might be. Many office space tenants make the mistake of not completing a financial analysis which can lead to serious financial trouble in the future when they find that additional costs are present and these costs simply can’t be met. The financial analysis will list out all of the costs associated with a prospective lease and allow you to determine if the lease agreement will be the right one for you to sign.
Financial Analysis Can Aid In Landlord-Tenant Negotiations
In addition to providing you with a detailed list of leasing costs for your future commercial office space, a financial analysis will also aid in various landlord-tenant negotiations. You never want to simply sign the lease and not try to negotiate any of the lease terms with your landlord. No term is set in stone when it comes to commercial office space leasing and there is always the opportunity to negotiate the best lease deal. When you have a complete financial analysis prepared for a specific office space, you can take those details with you when you speak with the landlord regarding certain lease terms. This will help you in the negotiation process and make it more likely that you get a reasonable deal on your future lease. The financial analysis will not only provide you with evidence of certain costs but will also show the landlord that you are taking any future leasing quite seriously.
Preparing a financial analysis prior to signing a lease is essential in commercial real estate leasing arrangements. This type of process allows you to thoroughly review your options and elps to ensure that the decision you make will be the right one now and in the future as well. A tenant representative can help you to prepare a financial analysis and will be with you when it comes time to speak with the landlord. By having this financial analysis completed, you will ultimately know which office space to lease by determining which is a financially sound decision for you in the long run.