From construction periods and improvement allowances to renewal options and subleasing rights, negotiating an office lease requires forward thinking and research. Thomas Allen, founding partner of Practice Real Estate Group, a full-service healthcare real-estate solutions company based in Austin, Texas, offers seven considerations for negotiating one in your favor.
1. Square Footage
Square footage of the leased space is the first consideration. “Try to come up with a plan for the business and understand how much square footage is needed, as close as possible prior to submitting a letter of intent,” says Allen.
2. The Construction Period
Second is planning for the time it takes to build out your office. “Therefore, you need to negotiate a construction period, whereby you do not pay any sort of rent until the new construction is completed,” Allen tells The Aesthetic Channel. Typically, a construction period is between 120 and 150 days.
3. Lease Length
The length of the lease is also important. “Normally, the longer the term, the more concessions you are able to secure from the landlord,” says Allen, noting that for most medical spaces the lease should be seven to ten years.