How to Navigate Leasing in a New Development


How to Navigate Leasing in a New Development

When leasing a new office space, it’s easy to look at properties that already exist, but there is an entire market of new or partially built developments that have potential to be amazing office space, if you plan accordingly. In order to navigate leasing in a new development, follow our steps for success.

Understand When Delivery Will Be and Plan Accordingly

Delivery dates can be a moving target and it’s important to nail down a date that’s as precise as possible. If you don’t have a precise date, you could end up without an office space, which could be detrimental to business. Always have a backup sublease, option to go month-to-month in your current space, or potential space on deck to ensure you have a place to continue business.

Make Sure to Have Contingencies in Place

This is important just in case things aren’t ready, aren’t working or weren’t constructed properly. Make sure your new landlord will handle a punch list of items for completion. As a tenant, it’s vital to work with a broker that can review and request contingencies in your lease to protect your rights.

Make Sure Your Budget Can Afford It

Typically new office spaces are more expensive than existing space. That’s why it’s important to understand all of the costs that are associated with leasing in a new development. From calculating costs for a potential sublease to taking on the extra costs of moving into a new development, make sure to have additional money tucked away in case the leasing process doesn’t go 100% as planned.

Ensure You Can Get Growth Rights

As your company grows, your office space will need to follow suit. This is where growth rights come in. Finding this extra space can be especially tough for smaller businesses in new developments, but working with an experienced broker can ensure that your company will be able to expand when the time comes.

Make Sure the Building has All COOs

Nothing can derail a new office move-in than the building not being up to code. Save you and your team the hassle of a delayed move-in date, and make it a point to ask your landlord to show you the necessary certifications of occupancy.

Navigating leasing in a new development can be a great opportunity for business owners as long as the proper research and precautionary measures are taken. The best way to ensure a successful lease is by working with a qualified broker to make the leasing process as smooth as possible.

Why Your Landlord Wants You to Have Commercial General Liability Insurance


 

If you’ve signed a lease for office space or talked with any commercial landlords lately, you’ve probably been asked about having General Liability Insurance.

Why is this insurance coverage so important? Because landlords can be held responsible for anything that happens to anybody while on the property.

“While the landlord does carry insurance, in every lease, ownership requires that its tenants carry insurance as well to cover loss in their specific space,” says William Himmelstein, founder and CEO of real estate consulting firm Tenant Advisory Group. “It’s a way to spread the risk across a few different policies; and in the landlord’s case, hopefully any claims are covered before it hits their insurance.”

Click here to read the rest of the article featuring Bill Himmelstein.

3 Tips to Negotiate Your Co-Working Lease


Co-working workspaces are becoming the new norm for up-and-coming businesses, offering the creature comforts of a big corporation – high-tech workstations, coffee supplies, conference rooms – at a price startups can afford. However, just because a co-working space seems to have it all doesn’t mean there isn’t room for negotiations or amendments to your lease.

Bill Himmelstein, founder and CEO of Tenant Advisory Group, has put together a few crucial components to consider before signing on the dotted line:

Amenities

Exercise ball chairs and trendy lighting are fantastic touches, but remember to factor in all aspects of your business into the monthly cost. Does it include internet access? Phone plans? Access to communal coffee and food? These amenities can be used as bargaining chips in negotiating with the landlord. Understanding what’s included in your leasing package and what’s additional is key to being budget savvy.

Flexible Terms

One key advantage to renting a co-working space is the option of a short-term lease — three- and six-month terms and even month-to-month payments can be negotiated. (Free Range in Wicker Park offers flexible 10-day passes.) This can be especially appealing to freelancers who want a stable work environment without being tied down to a long lease.

Unused Spaces

Co-working options can be found anywhere, not just with large companies like WeWork. Chicago’s many converted warehouses and vintage office buildings are full of carved out communal spaces with a plethora of opportunity. Since leases in these leasing packages aren’t usually as structured, having an expert on-hand can save some of your company’s valuable funds.

For more information about how Tenant Advisory Group can help you negotiate your co-working space lease, contact us today.

Buying Versus Leasing Space: What’s Best for You?


BUYING VERSUS LEASING SPACE- WHAT’S BEST FOR YOU- - Tag - Blog Header

The decision to rent or buy a home is one in which most people approach with significant care. It’s no different when evaluating whether to buy or lease with regards to commercial property.

This is a critical decision in a company’s development and requires extensive analysis. The Tenant Advisory Group, LLC (TAG) has significant experience helping a diverse group of companies navigate this decision.

There are several important factors to keep in mind when addressing the question of leasing vs. buying commercial space. On the top level, a company will want to consider the state of their industry, their own firm’ growth projections, and the amount of capital available.

The results of this high level analysis may make the choice of buying vs. leasing relatively easy. However, if the choice isn’t clear after this review there are additional factors that will then be considered.

TAG can assist you in this process and ultimately help your firm identify the right choice for your business.

In the meantime, we have outlined some of most important advantages and disadvantages of each choice and can provide you with additional information at your request.

Leasing

Advantages:

– Flexibility (amount of space, duration of lease)

– Reduced risk (no long-term responsibility)

– Reduced responsibility (building owner worries about property)

– Easy exist strategy (can relocate as soon as lease expires)

– Security deposit (not paying buy out so saves you money)

Disadvantages

– You are not building equity

– It is not “your” space as it belongs to the landlord

– You are dependent on someone else to fix things, improve things, or deteremin if you can sublease or not

Buying

Advantages:

– Long-term investment

– Building equity

– Interest is tax-deductible

– Stability in business location

– Possible appreciation (only works for long term)

– Leasing unoccupied space (if your not occupying the space you bought, could make a profit leasing it)

Disadvantages:

– Capital intensive

– Finite allotment of space

– Possible depreciation

– Difficult exist strategy