Finding a good fit office to rent for your business in NYC is obviously an arduous task. But even before you can locate one, it is prudent to obtain useful office rental NYC information regarding office rentals.
Lease term and rent are always the initial negotiation points. Generally, it is recommended that small business should negotiate 1 to 2-year leases with the possibility to renew. Factoring in rent increases over the term as well as renewal options is important. This is to avoid being charged with unexpected increase without prior notice.
When it comes to negotiating with the landlord, you should consider working with a commercial real estate broker. Also, consulting an experienced real estate lawyer is important as they can often recommend the proper choice for you. They will safeguard your interests as you negotiate your lease through the broker.
The other important information you need to have apart from your monthly lease payment is about the expenses you might incur beyond rental fee. This is because commercial real estate landlords often integrate additional expenses into the lease. These include maintenance fees, upkeep for communal facilities (CAM or Common Area Maintenance), among others. You need to find out how these charges are determined since they are normally the tenant’s responsibility. Establish whether they are individually metered or allocated by square footage. You should demand to see all of these hidden fees and rules and also costs that the tenants normally incur.
Upkeep and Repair
Commercial leases differ from residential leases in that the burden of maintenance and repair of residential leases rests squarely on the landlord’s shoulders. This is not so when it comes to commercial leases. However there is some variation regarding commercial leases maintenance and repair. There are those that require that the tenant be responsible for maintenance and repairs of all property, while the others stipulate that the tenant is in charge of systems such as plumbing, air conditioning, among others.
Read the lease carefully
You should ensure that you read over your lease in detail. It is necessary for you to hire an attorney, who is a specialist in commercial real estate to guide you through the fine clauses and fine print of the lease,
How to protect your business
If you are looking to protect your investment and long-term business interests, you need to do some investigations and negotiations for possible addition of some clauses to your lease.
These may include the Sublease, the Exclusivity clause, and Co-tenancy agreement.
Suppose You Default?
There are some measures you can take in the course of lease negotiation process that will help protect you just in case you default on your lease payments. Be sure to find out the following:
- What the lease agreement says about this
- Whether you be locked out straightaway
- If the landlord will instigate eviction proceedings
- If you can negotiate more time
- If you could pay only the current month’s rent instead of the remaining outstanding arrears on the lease
At office rental NYC information we provide crucial office rental information you may require.