Welcome to “Why Now Could Be the Best Time To Lease Commercial Office Space”
Many companies prefer to lease their commercial offices rather than purchasing space. Leasing offers a greater amount of flexibility and leverage to accommodate any future changes in your business.
If you are considering leasing space but don’t know much about commercial real estate, it can be challenging to determine when to make your move. Given the current commercial real estate market trends and rates, you’ll be hard pressed to find a better opportunity to lease space for your business than right now.
Why Lease Commercial Office Space?
Make The Most of Flexibility
Leasing a commercial space offers a great deal of flexibility. As a tenant, you have the option to customize the rented space as you see fit. You can also build in the flexibility to add additional space to your office or reduce the space occupied as needed.
Also, because there is so much office space available, landlords are competing for tenants by offering more amenities and better lease terms. This means that businesses can get more for their money when they lease office space.
Landlords are offering concessions such as more free rent, more tenant improvement allowances, and sometimes asking for smaller deposits. So, if you’re looking to lease office space, now is a great time to negotiate a better deal.
Save On Maintenance Costs
As an office tenant, your company is not responsible for the capital improvements of the building. Any repairs or structural problems that occur within your space is typically the responsibility of the landlord to address. This can be a significant advantage, especially if your business is growing quickly and you don’t have the time or resources to devote to property maintenance.
This also helps your company save on maintenance costs on the leased space, as well as mitigate any unexpected expenses in relation to the lease.
Limited Impact by Market Changes
As the market fluctuates, property values shift accordingly. However, as a tenant you have limited exposure to those fluctuations. Once your lease is locked in at your agreed upon rate, the landlord cannot raise rents until the renewal period of the lease agreement.
This means that your rent costs will remain fixed even during the most turbulent of markets. Furthermore, you can build additional leverage for the future if your broker negotiates a carefully worded renewal clause into your lease.
Optimal Tax Benefits
One of the most significant reasons that encourages people to lease commercial office space is the tax benefits. You can easily deduct your occupancy costs along with other expenses you bore during your lease duration. This can be highly beneficial for your business long term.
Also watch this podcast episode of Tenant Advisory Group’s Bill Himmelstein on Thursday Morning Live. In this episode, Bill talks about commercial real estate and the current markets. Learn even more reasons why now could be the best time to lease commercial space.
The Best Time for Renting Commercial Space
Why is it that when the prices of practically everything are soaring, the cost of vacant commercial space is coming down? This is because many businesses are downsizing or moving their headquarters to more tax-efficient/ cost-effective locations.
As people have been working from home due to the pandemic, companies had to rethink their use of commercial space and adjust their workforce. The result? The market is crowded with options for commercial office space. And this low vacancy has played a crucial role in keeping the rental rates down.
However, companies are now beginning to get their staff back in the office. After all, it’s been proven that virtual workforces are less productive, less collaborative, and less motivated than in-office staff. And so, the demand for commercial real estate is likely to increase in the near future.
There has been a significant drop in the valuation of commercial office spaces in recent months. With companies gearing up to buy or lease commercial office space again, this won’t last long. If you want to get the best rates and concessions for leasing commercial office space, you have to make your move fast.
To find out why now could be the best time to lease space in Chicago – read “Commercial Real Estate Trends in Chicago”
Get to Work to Lease Commercial Office Space Now!
Working with a skilled commercial brokerage firm is the first step in leasing a commercial office space. This will make it easier for you to lease a location suited to your business needs.
When you work with an expert team of brokers, you will be able to select a property that best suits your needs, negotiate the best terms in the market, and start your lease without hassle.
Contact Tenant Advisory Group for your commercial real estate leasing needs. We are here to help you learn more about your options and start searching for the perfect office space for your business.
Have questions or comments about “Why Now Could Be The Best Time To Lease Commercial Office Space” leave a comment below.
Also read “How to Re-Negotiate Great Terms for Commercial Real Estate”