If you are interested in office space for rent you should have a thorough understanding of the length of your lease. The rent on an office space for rent will be largely determined by the length of your lease. Landlords who sign lease agreements which are long term are generally open to concessions because a long lease ensures financial security for the landlord while simultaneously saving them the expense of having to re-lease the office space for rent. There are many risks as well as benefits as a company to having a long term lease. The first benefit of this is the rent. If you looking for office space to rent, you might want a predictable cost for your company for the long term, instead of the instability which comes with annual changes in rent based on the Consumer Price Index. This is especially important when you consider that the money paid monthly on an office space for rent is generally the highest expense a company will incur.
However, a long term lease on an office space for rent has its disadvantages as well. If your company is still growing or you predict any type of growth in the future in terms of mergers or expansion, you might need additional space for your company and will not be able to acquire it because you are locked down into a long term lease on the office space for rent. If your company wants less space for business contracts you will still have to pay the same amount as before with a long term lease on an office space for rent.
In any lease agreement you sign there will be a renewable clause. This clause is especially important in your negotiations as it allows you to possible renew upon the expiration of the current lease. If possible, you should try to negotiate a short term lease which has open renewal options. Having a lease on an office space for rent that only lasts two years with the option for renewal four times every two years is much better for your company than signing a ten year long term lease on the office space for rent. Some landlords will not permit a lease agreement which is less than three or five years. Since rent is, again, one of the main components to determining the type and length of a lease you sign for an office space for rent, it is important that prior to signing you negotiate the predetermined rent increases with the landlord during each of the renewal terms.
If your company is located in an area where commercial space is in high demand thanks to a growing market, then this is especially important. Landlords are otherwise able to raise the rent based on the market rates during each term which might lead to very large increases in your rent in growing and important market areas. While not all landlords will be very flexible here, and some might be incredibly reluctant, there are some landlords who understand that allowing for these negotiations will ensure that their tenant remains in their office space for rent, thus ensuring them more financial stability.