Today's Tenant Rep Tuesday Tip topic: Which Office Space is Right For You?
Look at the Building’s Features
When considering a property as a potential office space, office tenants should also consider the building’s features and what's included in the Landlord’s office space service as it can influence the rent rate. It is most common to hear about tenants and brokers reporting poor performance and drawbacks because they did not take into account the building’s full potential and features.
Although some properties offer low lease rates, it may not be useful and practical once you compute the total cost of occupancy and the space’s efficiency.
Always remember to compute the occupancy cost projections based on the absolute and present values and analyze them per usable square feet. This will allow tenants to see the differences in common area factors and efficiency.
This is the overall equivalent of the expenses needed by tenants such as taxes, janitorial, maintenance and personal expenses while using the office space. Get the advice of a broker who can ensure that the building selected would give cheaper operation costs. Tenants should also consider using building efficiency items such as energy-saving appliances and an HVAC system.
Not all buildings can provide and support specific technologies or industries, which is very important because it can affect production capacity. The technology industries – for instance, would require higher power and cooling capacity for their office space but it may not be allowed or applicable with the building. Other businesses – like those requiring a mobile workforce, would need a very big parking space which would not require constant parking contracts.
The building must have a dedicated and friendly staff for tenants to discuss building-related inquiries and needs. Some tenants may even speak with other tenants to get their reviews regarding the building as it would allow them to determine the management’s quality and the services offered for tenants.
It is important to check whether the building’s management can deliver the quality needed by the tenant and how close do they work with the existing tenants.
Some tenants may find their building option wrong especially once they see that the existing tenants may pose problems for the company. Others may find it likely that their competitors are in the same building.
Having an attractive tenant mix can show potential tenants that the building would not just support higher economics but also show that it is the best place to be. The building and its tenants also is key in developing a brand and creating the labor base.
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