3 Reasons To Review Your Lease (Part 2)
When is the last time you reviewed your office space lease?
Your commercial office rent is often the second biggest business expense after your employee salaries. This is an often ignored portion of the overhead expenses that should be scrutinized annually.
The biggest difference between office space expense and payroll expense: it is not as flexible.
Many business owners are forced to make difficult decisions during tough times and furlough or lay off employees. The reason you need to pay particularly close attention to your office rent is you cannot simply furlough your rent.
Here are 3 reminders why you or someone in your office should audit your commercial real estate lease and double-check your office space rent on an annual basis:
We’re all human beings and human beings occasionally make mistakes. Chances are, your business received an invoice for office rent due and simply paid it. That’s ok when you’re slammed with other projects but office rent is such a major expense, it needs to be reviewed at least annually.
Show your landlord that you are paying attention by checking the amount of rent you are being charged versus your lease.
Maybe they accidentally increased your rent a month early.
Maybe you were supposed to get a free month of rent in your second year.
Maybe your NNNs or CAMs have increased drastically and you never asked why.
You may not discover anything groundbreaking but at least you have the peace of mind that you confirmed your current terms are accurate.
What happens if you confirm the office space rent terms are accurate and it’s more than you want to pay?
It’s a little bit like ignoring the scale in your bathroom and being unpleasantly surprised when you finally step on. “How did that happen?!?” is a question that inevitably arises.
The good news is you have access to a free personal trainer that can help whip your office space rent into shape. Contact Carlsen O’Connell Commercial Real Estate anytime to discuss your lease and compare it against the market. We’re happy to give an unbiased second opinion and show you other office space for rent.
For the reasons above, we recommend doing a quick lease review every year. If you want to outsource that process for free, contact Carlsen O’Connell Commercial Real Estate at 916-287-7439 or email us at firstname.lastname@example.org.
Carlsen O’Connell Commercial Real Estate offers a free service to help business owners find office space for rent in Folsom, Rancho Cordova, Roseville, and the Greater Sacramento Area.