If your business needs a short-term lease or a smaller space, you have your work cut out for you. Typically, the minimum lease term for a commercial real estate lease is three years. However, this does not work for every type of business. When it comes to startups or small businesses, flexibility is key as they establish themselves within the market. Additionally, these types of businesses don’t usually need a lot of space, so they are often looking for a space that is smaller. This can be hard to come by, as most rentable space is a minimum of 1,000 square feet.
When these types of businesses start looking for office space to rent, they often find that they have limited options. In general, landlords prefer long-term leases, because month-to-month or year-long leases are not to their advantage. Finding a short-term space for your business requires extensive searching, and you may not find anything that meets your needs.
Even if you do find a landlord willing to rent a space to you, you are at a distinct disadvantage during tenant negotiations. You have no leverage, and therefore, may have to take a higher rent than your neighbors. Not only that, once your lease is up, you are particularly vulnerable to a spike in rent if you want to renew your lease.
If you are looking for a smaller office space or a more flexible lease, it is wise to hire us for tenant representation. We can help you find a commercial space that suits your needs, and help you during lease negotiation to ensure you get the fairest rent possible.
Alternatively, another option is to seek an unconventional leasing. In our next blog, we will go over a couple of options you have. In the meantime, if you are looking for commercial real estate in Denver or Northern Colorado, contact Rare Space. We have the experience and connections necessary to find you the right commercial real estate for your business’s needs.