3 Reasons To Review Your Lease (Part 3)
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:
Everyone has heard the urban myth that a frog in a pot of water won’t notice the water temperature gradually increasing until it’s too late.
The same can said for businesses adding employees and not realizing they are drastically outgrowing their office space until they are bursting at the seams.
Alternatively, you may take a step back realize you aren’t using 33% of your office space square footage and are not likely to use it in the future.
You may also realize you have too many private offices and prefer to have employees in a more open collaborative environment.
You are paying office rent for commercial real estate that you don’t need. That’s like a young single bachelor buying a huge minivan and installing car seats before he’s even dating anyone. Maybe you’ll need eventually, but why pay for it now?
If you don’t step back once a year and objectively evaluate your office space, who will?
If you decide something needs to be changed, don’t get stuck with the mentality that you have to wait until your current lease ends. Most office space leases in Folsom and the Greater Sacramento Area allow you to sublease your space to another qualified business.
Also, Contact Carlsen O’Connell Commercial Real Estate and we can reach out to your landlord to see if it’s possible to expand or downsize within your current building. It never hurts to know your options.
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.