As any experienced business attorney can attest, leasing office space in the Bay Area can be a challenging process for business owners. This is why business attorneys are often sought for counsel and guidance during the process of scouting new locations for a business. Read on for what Bay Area business owners should know about leasing office space.

How Far in the Future are You Leasing?

Renting office space sometimes requires tenants to sign a three to five-year lease, with some commercial real estate requiring a 10-year lease. Business owners run the risk of outgrowing their current office space while still being locked into their current lease. Some business attorneys may advise business owners to consider renting more space than they need now to accommodate potential future growth. If that growth does not manifest, the extra space can possibly be sublet to other tenants, provided this action is allowed in the original lease agreement.

Is the Building Wired for Your Needs?

Renting office space in older buildings may initially seem appealing because the monthly cost may be lower, but older buildings cannot always meet the power and technological needs of many contemporary businesses. Business owners may not be aware of just how much power is required to facilitate the simultaneous operation of the computers, networking equipment, office equipment, and additional general items such as lamps and kitchenware.  

All of these pieces of equipment can exert a large load on older circuit breakers and electrical panels. Consulting with an inspector may help business owners to better understand their power needs before shopping for new office space.

What is Included in the Lease Agreement?

When leasing office space, many times there are other expenses or services that are included in the cost of monthly rent. For example, some lease agreements include trash pickup, cleaning services, snow plowing for colder climates, and other common area fees. Sometimes, utilities such as water are included, while other leases leave these costs to the tenant. By taking the time to better understand what the monthly rent includes, business owners will be better able to budget for any additional monthly or seasonal expenses.

Is the Building Owner Accessible?

It is important for business owners to establish who owns the building before signing a lease.  Sometimes, commercial real estate may be owned by a large corporation located far away. This can make it challenging for business owners to get any issues resolved quickly and efficiently.  Even if the owner of the property is local, however, it is still advisable to check with other tenants in the building to get a sense of how accessible and communicative the landlord is. Taking time to perform this due diligence up front can save business owners loads of time later on.

Is There an “Out” Clause?

If you outgrow an office space or need to cease operating your business for some unforeseen reason, an “out” clause spells out the terms by which you can exit your lease. Consult with an experienced local Bay Area business attorney to ensure that any lease you sign contains adequate parameters regarding a “out” clause.

Professional Counsel in the Bay Area

For years, the attorneys at Coepio Legal have been assisting Bay Area business owners as they navigate the countless challenges and obstacles associated with operating a business legally and efficiently.