Many office rental spaces come with a high price tag that may be hard for a company to handle if enough revenue is not produced to cover the leasing expenses which can lead to difficulties if a long-term lease has already been signed. This does not need to happen as there are many Dallas office space locations where necessary office facilities can be found at a much lower cost.
Following are some of the ways to find something less expensive so that money can be saved on a building lease.
- Downsizing – The current economy has caused many businesses to downsize, leaving a number of available empty office spaces located in strategic locations just waiting to be sublet. Discounts for such places and be up to twenty-five percent.
- Incentives – When hunting for a new Dallas office space, keep in mind that many communities are offering incentives to relocate to that area accompanied by local financial institutions offering low-interest rates on business loans. Other opportunities may also be available, such as economic development zones or tax abatements to attract companies.
- Sublet – If a company leases a larger building or area than what is needed due to possible future expansion that is planned within the next five years or so, a wise choice would be to not allow such space to be empty and unproductive. Allowing certain areas to be sublet would allow for productive use of such area while waiting for any expansion timeframe.
- Shared Space – The power of a roommate to compliment a business should never be underestimated. For example, it would beneficial to provide clients with musical writers to share space with a video production facility. Any other similar match could be a very attractive incentive for a client to return to do business with both such companies.
Savings are typically discovered in the negotiation process. Following are some tips for getting an edge on the bargaining.
- Representative – Having a lawyer or a real estate broker assist during lease meetings can definitely produce better deals than going through the process without any help.
- Measurements – It is always the best choice to confirm any area measurements by asking to be allowed to calculate the square footage and compare that figure to what is being stated as included with the building or area rental.
- Rental Increases – A fixed rate of annual rent increases should always be negotiated with the owner. Anything else could leave a business unsure of exact expenses from one year to another. Insist that there be a cap on such increases, perhaps based on the consumer price index.
- Cancellation – A building owner will always desire a longer lease term such as 5 or 10 years to keep income at a steady rate. When such is asked, it would be appropriate to negotiate for the right to cancel the lease, typically an option to cancel after three years.
- Renewal Option – For protection, it would be a wise idea to ask for the right to renew a lease and be lock in the renewal rate. Even by locking in this rate, it is still possible to renegotiate the rate should the market change.
- Restrictions – It is important to think about growth and expansion; therefore, the sublease clause should allow for the ability to have first chance at any additional unused space to sublease.
A well-located Dallas office space may have a high rental rate; however, following some of the tips listed above may help find an area or building at a more inexpensive rate. At the very least, it will hopefully help negotiate better lease terms and save rental costs. These are just some of the important ways to find office space that can save needed business capital!
Find Great Dallas Office Space with the Help of LCRG!
Are you looking for a new Dallas office space but have a limited budget? Call LCRG (Laughlin Commercial Realty Group) at 214-526-2626 to help locate the perfect space for business needs at just the right price!