1. If you prefer a downtown office location, make sure you're in comfortable walking distance to restaurants, theatres, museums, etc., as well as other business and professional offices you work with. If you think you're downtown but you have to drive to those places, you're not really downtown.

2. If you prefer a suburban office location, make sure your choice is based on regional accessibility for customers and your employees. It's also important to think about travel time to reach your customers, clients, vendors and allied companies. Travel time from your residence to the office should be a secondary consideration.

3. Before you decide on a location, talk to other tenants in the building about their level of satisfaction with the Landlord and the services they receive. No matter how well you negotiate lease terms, it is people who administer the lease. Find out in advance if the Landlord performs and save yourself pain, suffering and legal fees later.

4. Downtown leases tend to be "gross" or "full service". That means your rental rate covers heating, cooling, common area maintenance, taxes, insurance, nightly custodial cleaning, etc. Suburban leases tend to be "net". That means the operating costs listed above are passed on to the tenants in relation to the percent of total building space they occupy. Sometimes suburban leases are "full service", but pass operating expense over a certain amount on to the tenants; again, pro-rata. These are complicated accounting practices and the wise tenant will retain the services of a certified public accountant or a commercial realtor who will examine them carefully and advise you on what can be expected in terms of future additional rent expenses.

5. When choosing a new location or negotiating a lease renewal, ask the owner to include space planning and design as part of the improvement costs. Be in control of that process. Work flow, conference space, who gets window light and numerous other issues can't be left to chance. Expect the building owner to include the planning/design expense as part of rent. It's a small part of the cost compared to construction expenses; but, it's very important.

6. Assume that improvement costs are part of rent; whether they are offered as an "allowance" or not. What you need to focus on is the time period over which the expenses are spread; and, the interest rate being charged. Negotiate for an interest rate that you reasonably believe the owner can obtain (usually lower than yours) and seek an amortization period equal to the initial term and the first renewal period.

7. Make sure that the list of improvements is detailed in the lease. Keep in mind such items as signage on or next to your entrance door. If it isn't included, you might be getting an unexpected invoice after you move-in.

8. After you move in, or expand your space as part of a renewal, pay to have an architect or engineer measure your space. If it is less than what the lease calls for, your rent should be adjusted accordingly. This has resulted in a savings of thousands of dollars over the life of a lease. Once a year, review your lease to see whether or not your Landlord is doing everything called for in the agreement.

9. At least one year prior to the expiration of your lease, call on other building owners to compare rental rate, service and amenities with your current location. If this results in a decision to move, negotiation of a new lease and preparing your space will take several months. The larger your space, the longer it takes. Don't wait too long to start the comparison.

10. In an office building of significant size with more than a few tenants, make sure that there's on-site management. You're entitled to all the services you contracted for and a building manager should be there to make sure you are well served and that problems are being resolved.

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10 TIPS ON LEASING

OFFICE SPACE

As a Landlord, Waters Corporation has been leasing office space for over 50 years. We're pleased to offer the following suggestions on how tenants should approach landlords on the process of obtaining a new lease or renewing an old one. If you would like additional assistance, we offer real estate services through Waters Realty & Development, Inc. Please call Chris Atwater or Jeff Wetherbee at (616) 459-4161 for a “no obligation” consultation.