4 Things to Consider When Leasing Office Space
There are a few things to consider when leasing office space in Chester County, Pennsylvania. Renting commercial office space is much different from renting a private home or apartment. Here's what to know before leasing office space.
What is a Typical Lease Term
A typical office lease lasts anywhere from three to ten years. When you sign on the bottom line, you're making a commitment that you can't change in the short term. Thus, you'll want to ensure that the space you pick meets your needs. Look for a place in a location that is favorable to your business, has appropriate amenities, and is close to dining and transportation options.
What Does NNN Mean?
Commercial office property has its own terminology that new renters must learn. An NNN lease is known as a triple-net lease. Under this type of lease, the tenant pays expenses the property owner usually would cover, such as real estate taxes and building insurance. The tenant is also responsible for maintenance costs.
Property owners who offer triple-net leases sometimes have low square footage rental rates. The tenant may believe they've found a great deal compared with other similar properties on the market, but with the extra costs, the average monthly rent is much higher than expected.
Other types of leases include the single net lease and the double net lease. Under a single net lease, the tenant is responsible for property taxes. Double net leases require tenants to cover both property taxes and building insurance.
Before signing any commercial lease agreement for office space, carefully read the fine print so you have a complete understanding of the extra expenses you'll need to pay.
How to Find Commercial Office Space
If you're just getting started in your search for a new office, it's good to educate yourself by begining online. Sites like Loopnet and CREXi can give you a feel for current spaces available and local market rent rates. You'll also be able to view pictures of the open offices and their features.
Driving or walking around your desired market can also be beneficial. You'll learn more about the location and its characteristics. Occasionally, property owners will place signs in front of commercial office property that is available for rent. Those properties may not be available through websites or commercial property brokerages, and occasionally people get lucky and find a great place before others are even aware of it.
Should I Use a Commercial Real Estate Agent When Looking to Lease Office Space?
Once you have begun your initial search and understand the type of office space you're looking for, you'll want to work with a commercial real estate agent. A commercial real estate agent can assist you in your search, finding properties that fit your requirements. They'll also explain how the leasing process works, so you'll know what to expect when choosing your new location.
Pillar Real Estate Advisors, LLC who’s focus is the suburban Philadelphia , PA Metro market, can help you in your search for office space. We're the region's premier commercial real estate brokers. Our firm works with all types of commercial properties, including office, retail, industrial, flex, multifamily, investment, and land transactions.