When you lease a new office space, there are many factors that you must consider. One such factor is the length of your lease. Generally, commercial real estate leases are a minimum of three years long and a maximum of 15. When deciding what works lease length works best for your company, there are several factors to take into consideration.
Size of your business
If you have a larger company with many employees, you will want to sign a lease that is longer term. This is because it is much more inconvenient and costly for a large company to move all of its employees every few years. If you require hundreds of thousands of square feet to accommodate all of your employees, it is better to sign a lease that guarantees you can stay put there for a while.
If your business requires a particular type of space or certain build outs, you want to get a long lease. It is not financially realistic to have to make changes to a new office space every few years to fit your needs. When you find a space that works with your special requirements, you need to lock it down long term.
The cost of your rent is impacted by the overall health of the economy and current state of the real estate market. If you sign a long lease when the real estate market is up, you may end up stuck with high interest rates long after the market has gone down. Look to the economic climate before committing to a longer term lease.
When you are leasing a new office space, Rare Space can help you with tenant representation during lease negotiations. Contact us today for more information.