All posts tagged lease

Your Office, Is It Better To Lease Or To Own?

As with any decision in life there are two sides to every situation. If you are currently considering whether you should lease your office space or buy it you may wish to include the following in your deliberations:

 

  • Would you be a better landlord than your current lessor? When you’re your own landlord, you don’t have to worry about whether your rent payment is inflated because it is a profit center for the landlord. You have the ability to control some of your expenses.
  • Are you changing office locations frequently because of rental rate or common area maintenance increases?Moving takes time and money, which could both be better invested in buying a space. Not to mention it would be nice to know what your debt service will look like in the future as opposed to experiencing market fluctuations every once in a while.
  • Would you rather your monthly rent payment be an investment?No one likes spending a lot of money every month on rent. Buying won’t rid you of those monthly payments, but instead of giving that money to someone else, you are investing in an asset.

However, buying versus leasing doesn’t mean it’s the right decision for you.

  • Is relocation/significant expansion/downsizing slightly possible in the next few years?Buying is a long-term commitment. Unless you’re purchasing office property solely as an investment, your company’s growth or downsizing expectations will play a role in your decision.
  • Is location important?Some businesses may need to be in a specific part of town. Unfortunately this may eliminate the advantage of locating in up-and-coming areas where the market may be more conducive to your business.
  • Is your current lease structured as a full service lease? If you’re currently leasing, the building manager most likely has a cleaning and maintenance crew that empties the trash, replaces light bulbs, maintains the bathroom, etc. Oftentimes potential buyers take janitorial and maintenance services, utilities and services such as Internet and phone service for granted and forget to factor it in their buying considerations. You must be willing to take on or hire out these responsibilities if and when you buy.
  • Would your equity be better placed in your business?If you only have capital for one investment, your business may be a better choice than buying a building. Similarly, your time may be better spent working on your business rather than maintaining a building.

 

Leasing an office or set of offices from Executive Suites at Lakewood Ranch gives you flexibility in terms and payments and you will be located in the ever growing and trendy Lakewood Ranch area.  We also provide all of the external services you need which means you won’t be taking out the trash each night.

 

Check our website,  ESLR Offices, check our specials and check out our offices and prices. Your decision to lease versus buying may become a very easy one for you to make.

With Office Rents On The Rise, Should I Consider A Sublease?

Subleasing can be a great way to obtain short-term office space at a lower market rate, however make sure you review both subleasing and direct office lease opportunities and carefully review both the sublease and the sub-lessor’s original lease and understand your obligations. It is imperative that you seek legal advice before signing anything as subleases are legal binding agreements and are also dependent on the original lease.

Subleases can be complex because they involve three parties: the landlord, the sub-lessor (the person or organization that signed the original lease and who you will be subleasing from) and the subtenant (you) as well as two documents: the master or original lease and the sublease. To further complicate matters, there is no direct contract between the landlord and the subtenant. And all this is possible only if the master or original lease allows for a sublease.

Whether you are a sub-lessor or subtenant, there are a number of things to keep in mind to ensure a successful sublease:

  1. Breaches of the lease: If your sub-lessor goes into liquidation, defaults on payments or breaches their lease, it will affect your sublease as well.
  2. Maintenance/repair delay: If you need repairs or require additional services provided by the landlord, you will most probably need to go through the sub-lessor to make it happen. This may cause delays and have an adverse impact on your business.
  1. Your image/brand: Subleasing means that you could be limited in how you present your business, including any allowable signage, advertising, and decor. It can help to sublease from someone in a similar type of business or with a similar image.
  2. Is the Rent Really Cheaper?: Some sub-lessor’s sublease their office space in the hope of making a profit.
  3. Are You Stuck With Something ?: If the sub-lessor negotiated an unfavorable deal with their landlord, they may try to pass on certain fees and higher rent to you. Be sure either you or your attorney read both the sublease and original lease. Make sure you are not limited in how you can use the property.
  1. Sub-lessor’s Business: When subleasing, be sure to do your homework on what business your sub-lessor is conducting. It may conflict with your business or ethics or it may be extremely noisy. Also be aware of any legal disadvantages if you do have problems with either the sub-lessor or the landlord.
  2. You, the Sub-lessor and the Landlord: Finally, even though the transaction is with the current tenant of the office space, it is not necessarily two party negotiation, but potentially a three-way negotiation between landlord the tenant and the sub-lessee.

    Make your life simple, don’t get a sub-lease. Contact Executive Suites at Lakewood Ranch to get the best rates and terms on an office that you lease directly. By getting your office at Executive Suites at Lakewood Ranch items 1 through 7 from our list above will not apply to you and therefore will never give you headaches or cause you to lose sleep at night.