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(2010) Top 3 biggest mistakes office tenants make

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(2010) Top 3 biggest mistakes office tenants make

  1. 1. The 3 Biggest Mistakes Tenants Make<br />1. Not Using a Tenant Representative<br /><ul><li> The biggest mistake made by tenants looking for commercial office space is not engaging the services of a tenant representative; thinking it will cost them money.
  2. 2. It doesn’t.  A good tenant representative, like the ones we have at OfficeFinder, is invaluable in making sure you find the right alternative, negotiate the best possible deal and avoid costly mistakes. </li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  3. 3. The 3 Biggest Mistakes Tenants Make<br />1. Not Using a Tenant Representative<br /><ul><li> They do this every day and only get paid when you get what you want. And you don’t even have to pay them.
  4. 4. It costs you nothing.. It’s Free !
  5. 5. Most Landlords hire listing agents and the tenant rep will share in that fee.  If there is no tenant rep, the listing agent keeps the entire fee and you are on your own.
  6. 6. Tenant rep services will save you money by making sure you do it right with solid information and advice.</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  7. 7. The 3 Biggest Mistakes Tenants Make<br />1. Not Using a Tenant Representative<br /><ul><li>Many tenants don't understand what a good office tenant representative does.
  8. 8. A tenant rep does more than just find office space. A good tenant rep will coordinate the entire office leasing process from helping you define your needs all the way to ensuring your space plan works for you.
  9. 9. In between, an office tenant rep will not only find suitable alternatives, help you negotiate the deal, but also help with information, advice, space planning and lease review</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  10. 10. The 3 Biggest Mistakes Tenants Make<br />2. Not Enough Time Allowed<br /><ul><li>The second biggest mistake made by tenants looking for office space is not allowing enough time for the process. 
  11. 11. Far too often tenants will not get started early enough and have to settle for less than they could have had otherwise.
  12. 12. This applies to tenants who are looking for conventional space and not executive suite, virtual office space, or co-working space.
  13. 13. Typically a tenant can be in these spaces as soon as the next day or at least within the month.</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  14. 14. The 3 Biggest Mistakes Tenants Make<br />2. Not Enough Time Allowed<br /><ul><li> Tenants looking for conventional office space under 10,000 should get started at least 6 months prior to their move in date.
  15. 15. Six months will allow enough time to find some good alternatives, negotiate the best deal and have any tenant improvements completed for an on time move-in.
  16. 16. It is true even in a soft market. In fact, even more so since there will be many more possibilities to investigate.</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  17. 17. The 3 Biggest Mistakes Tenants Make<br />2. Not Enough Time Allowed<br /><ul><li> For office tenants over 10,000 square feet, at least 9 months should be allowed. 
  18. 18. The larger the tenant, the more complicated the process and more time is needed.</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  19. 19. The 3 Biggest Mistakes Tenants Make<br />3. Not Understanding All Of The Costs<br /><ul><li> There are more costs involved in leasing office space than just the rent. 
  20. 20. Many of these costs are quoted in different fashions so it can all get quite complicated when comparing alternatives. It becomes difficult to compare proposals on an apple-to-apples basis.
  21. 21. In fact, it can even become difficult for an inexperienced tenant representative to decipher the various costs involved in comparing different office space alternatives.</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  22. 22. The 3 Biggest Mistakes Tenants Make<br />3. Not Understanding All Of The Costs<br /><ul><li> First of all, there are different lease types including full service, gross, semi-gross, net, triple net and other variations which specify which, if any, expenses the tenant pays.</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  23. 23. The 3 Biggest Mistakes Tenants Make<br />3. Not Understanding All Of The Costs<br /><ul><li> How about the base year for operating expense pass throughs?
  24. 24. This is the base year amount of operating expenses that your additional costs are based on.
  25. 25. If you don’t pay attention or don’t know you could find yourself liable to pay for increases over a base year that could be 5 year old and cost you several dollars per square foot right off the bat.
  26. 26. What if the building is only 25% occupied? Who will pay for the operating expenses on the vacant space?
  27. 27. What is the norm for your market?</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  28. 28. The 3 Biggest Mistakes Tenants Make<br />3. Not Understanding All Of The Costs<br /><ul><li> If your lease is a triple net lease are the expenses in line with what could be considered normal in your market or are they somehow higher due to extra landlord fees?</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  29. 29. The 3 Biggest Mistakes Tenants Make<br />3. Not Understanding All Of The Costs<br /><ul><li> There are also different levels of tenant improvements which can be included in the lease.
  30. 30. Landlords will very often offer a per square foot allowance for tenant improvements.
  31. 31. Is this on the net rentable space or usable area or is it from shell condition or below the ceiling?</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  32. 32. The 3 Biggest Mistakes Tenants Make<br />3. Not Understanding All Of The Costs<br /><ul><li> Another big one could be the load factor in calculating useable vs. rentable space measurement.
  33. 33. It is the percentage of space on a floor that is not usable plus a pro-rata share of the building common area, expressed as a percent of Usable Area. It is also known as the Common Area Factor or the Loss Factor.
  34. 34. A Typical load factor range is 10% to 18%. Some inefficient buildings can have load factors as high as 25% or more.
  35. 35. Once again, what is the norm in your market?</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  36. 36. The 3 Biggest Mistakes Tenants Make<br />3. Not Understanding All Of The Costs<br /><ul><li>The answers to these questions can make a significant difference in the overall cost of renting office space.
  37. 37. Which is why making mistake number one is the biggest mistake and can be so costly.
  38. 38. Understanding all of the leasing costs and being able to communicate that information to you is an important part of what a tenant representative does.
  39. 39. It can save you thousands of dollars in avoiding mistakes. Tenant representatives provide many more services to their clients and there is no cost to you in engaging their services.
  40. 40. It costs you nothing, but can save you thousands.</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />
  41. 41. The 3 Biggest Mistakes Tenants Make<br />3. Not Understanding All Of The Costs<br /><ul><li> OfficeFinder Has helped over 190,000 businesses with their office space needs since 1995.
  42. 42. We have Local reps in over 550 markets who would be happy to assist you.
  43. 43. Get Help Finding Office Space</li></ul>The Right Space at the Best Price without the Usual Hassle<br />www.OfficeFinder.com<br />

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