As your business grows, you may need more office space to accommodate your operations and workforce. Although every office relocation is its own unique situation, depending on your specific business needs, every business owner must think about a few legal and non-legal things when making this big change. First, you will need to find a new location that works for your company and negotiate the lease.
Get a Good Broker
Finding a good broker is an important step to take once you have made the decision to move offices. Using their market knowledge and network, a good broker can help you find the best space for your needs and save you both time and money during the process. A good broker will usually have access to off-market listings or listings about to go on the market and can act in your best interests, so you do not rely only on the information given to you by the landlord or their agent. When looking for a broker, find someone who has experience in your specific industry, possesses deep knowledge of the market, and listens to your priorities.
Finding a Location, Negotiating the Lease
To find the ideal location for your new office space, you must clearly determine your needs. In addition to the cost, square footage, and type of space, consider things that can easily be overlooked. Some questions to ask yourself when searching for a new office location where your employees can be productive include:
- Does the office building have parking?
- Is the building close to public transportation?
- What are the amenities?
- What is the neighborhood like?
- Does the property have room for your business to grow?
- Is there a meeting room, kitchen space, and a break area?
- Is the building compliant with the Americans with Disabilities Act (ADA)?
- Is there natural light in the building?
- What is the lobby space like?
The overall price you pay for office space will affect the net income of your business operations. Consider hidden charges and additional costs you may incur for utilities, janitorial services, maintenance fees, and parking fees. Research the property to ensure you have all the information necessary to negotiate favorable lease terms.
Negotiating the Lease
Once you’ve found the best space for your new office, you will need to negotiate the lease. A commercial lease is a contract — and a lawyer should assist you in negotiating the best contract. Rely on your broker to negotiate the business deal, and your lawyer to negotiate the lease. At the time of this blog’s writing, the market is a renter’s market, and office space is much less costly now than pre-pandemic. If you’ve secured a desirable location and your business is stable, consider structuring the lease in a fashion that gives the landlord economic incentive to bend. This incentive can mean entering into a longer lease term in exchange for a lower rent rate or a lease with options.
Review the lease carefully with your lawyer before signing to determine whether it aligns with your business needs and where a compromise might be required. Regarding leases, everything is negotiable. In addition to lease terms and rent, you can also negotiate renewal options, improvement allowances, and each party’s maintenance obligations. You should also carefully consider any early termination clauses, buy-out terms, expansion options, and force majeure clauses.
Contact an Experienced New York Business Attorney
If your business operations are expanding and you’re considering moving office locations, it’s important to have a skilled attorney by your side who can best advise you — and negotiate the lease terms on your behalf. Offering reliable representation and high-quality counsel, Brinen & Associates works with clients navigating a wide range of business matters, including those involving commercial lease agreements. Call (212) 330-8151 or send us a message to learn more about how we can help you.
