{"id":5799,"date":"2023-03-02T08:20:16","date_gmt":"2023-03-02T15:20:16","guid":{"rendered":"https:\/\/www.realtyexecutives.com\/blog\/?p=5799"},"modified":"2023-03-03T09:59:04","modified_gmt":"2023-03-03T16:59:04","slug":"leasing-out-office-space-from-a-brokerage-building","status":"publish","type":"post","link":"https:\/\/www.realtyexecutives.com\/blog\/leasing-out-office-space-from-a-brokerage-building","title":{"rendered":"Leasing Out Office Space from a Brokerage Building"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright\"><img decoding=\"async\" loading=\"lazy\" width=\"450\" height=\"300\" src=\"https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2023\/02\/Blog-Images.png\" alt=\"An office that has been cleaned up to be leased.\" class=\"wp-image-5800\" srcset=\"https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2023\/02\/Blog-Images.png 450w, https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2023\/02\/Blog-Images-300x200.png 300w\" sizes=\"(max-width: 450px) 100vw, 450px\" \/><\/figure><\/div>\n\n\n\n<p>Depending on the working\npreferences of agents, brokerage buildings can often have available space.\nTenants may leave or the brokerage may acquire a new property with unoccupied\nspace. Owners or management will be responsible for maintaining and caring for\nthe property, and good maintenance increases the possibility of not only\nleasing the property sooner, but achieving a higher rental rate for a longer\nperiod. <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Prepare the Property for Lease<\/h2>\n\n\n\n<p>Property conditions will directly relate to the success of the businesses that will be leasing. So, when preparing to lease, follow these tips to <a href=\"https:\/\/www.realtyexecutives.com\/blog\/use-tech-to-optimize-your-commercial-real-estate-properties-for-a-safe-hygienic-return-to-work\">prepare the office space<\/a>. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Remove Furniture &amp; Clear the Space<\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2023\/02\/Blog-Images-1.png\" alt=\"To prepare to lease office space, you should clear the room of furniture and other items.\" class=\"wp-image-5801\" width=\"225\" height=\"150\" srcset=\"https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2023\/02\/Blog-Images-1.png 450w, https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2023\/02\/Blog-Images-1-300x200.png 300w\" sizes=\"(max-width: 225px) 100vw, 225px\" \/><\/figure><\/div>\n\n\n\n<p>It\u2019s much easier\nfor potential clients to visualize how their office will appear in a space if\nthe floor layout is empty without old furniture, items, or trash left behind by\na previous occupant. Anything that is not included in the lease should be\nremoved. Cluttered space will not aid potential renters in imagining how their\nbusiness will be accommodated in the space. The space should be ready to lease\nwhen you show it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Clean the Space for Lease<\/h3>\n\n\n\n<p>Once old furniture,\nitems, and general clutter have been removed, dirt and dust will be visible.\nClean your space thoroughly including vacuuming, dusting, window washing, and\ncarpet cleaning if carpeting is installed. Depending on the size of the space\nand the cleaning to be done, you may want to bring in professionals to get the\njob done. Consider cleaning expenses an investment to obtain a higher rent for\nyour space.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Consider Replacing Flooring or Carpeting<\/h3>\n\n\n\n<p>Once old furniture\nand clutter are removed, you will be able to evaluate the condition of flooring\nor floor coverings. Most may need to be replaced especially if you are renting\noffice space to a business that receives the public. Stains, holes, and smells\nwill dissuade potential renters from selecting your space to lease. When\ninstalling new coverings, invest in stain-resistant, neutral colors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Paint &amp; Repair<\/h3>\n\n\n\n<p>Expect minor wall\ndamage from nails, hangings, etc. Have walls repaired with plaster, or drywall\nif necessary, and plan on adding a fresh coat of paint. This will afford the\nspace a fresh clean appearance. Select a <a href=\"https:\/\/www.realtyexecutives.com\/blog\/promoting-relaxation-with-color\">neutral but light shade<\/a> to give your space a\nlarger feel. Consider that colors will appear darker on walls than on a display\nstrip.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Renew or Replace Lighting<\/h2>\n\n\n\n<p>Bright lights\nimprove office space, so clean and repair any lighting. You may want to install\nbrighter LED lighting to keep energy consumption lower. Consider replacing old\nfixtures or at least cleaning older fixtures thoroughly before you present your\nspace.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Photograph the Space<\/h3>\n\n\n\n<p>When you have\ncompleted repairs and cleaning and are ready to show the space to prospective\nclients, take lots of photographs. You may want to call in a professional\nphotographer that can get you the best angles and images of doors, flooring,\nwindows, ceiling heights, lighting, interiors, and exteriors. You may want to\ninclude photos of heating and cooling elements if not centralized and\nelectrical panels or similar.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Role of the Broker<\/h2>\n\n\n\n<p>Even before\nproperty maintenance and repairs, the professional broker will aid in the\nleasing procedure. Brokers act as professional negotiators and should have a\nwell-versed knowledge of the local market.<\/p>\n\n\n\n<p>The property should\nbe listed on the brokerage\u2019s website as well as on other industry-related\nnetworks. Market listings with floor plans and details need to be prepared. Define\nvarious leasing aspects such as:<\/p>\n\n\n\n<ul><li>Terms<\/li><li>Prices<\/li><li>Cancellations, early exits, and\nextensions<\/li><li>Utilities, heating, and electric<\/li><li>Parking<\/li><li>Security<\/li><li>Taxes<\/li><li>Trash disposal<\/li><li>Maintenance<\/li><li>Build-out allowances<\/li><\/ul>\n\n\n\n<p>Leases will vary\nbut the broker\u2019s role is to recommend what\u2019s best for the property owner.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Decreasing the Brick-and-Mortar Risks of a Brokerage by Subleasing<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2023\/02\/Blog-Images-2.png\" alt=\"A group of workers working in a leased office space.\" class=\"wp-image-5802\" width=\"225\" height=\"150\" srcset=\"https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2023\/02\/Blog-Images-2.png 450w, https:\/\/www.realtyexecutives.com\/blog\/wp-content\/uploads\/2023\/02\/Blog-Images-2-300x200.png 300w\" sizes=\"(max-width: 225px) 100vw, 225px\" \/><\/figure><\/div>\n\n\n\n<p>One option for\nreducing the expenses that are associated with unoccupied office space is to\nsublease. Often brokerages may lease office spaces to mortgage officers, title,\nor home warranty companies. Most leases allow for some subleasing, but\nsubleasing rights and how far they extend must be determined in advance. <\/p>\n\n\n\n<p>Covid-19\nrevolutionized the workplace. Shorter workweeks and remote work have left many\ncompanies with more office space than they need, which can drain company\ncoffers. While the lease will dictate exactly what a lessee can do, <a href=\"https:\/\/www.yardikube.com\/flex-workspace-software\/\">flexible workspaces<\/a> are a more productive\noption than default or early termination of leases. Default generally ends in\nlawsuits with no benefit for the defaulting tenant. Early termination clauses\ncan be included in leases but will come with additional costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Considerations for the Commercial Tenant<\/h2>\n\n\n\n<p>Signing a\ncommercial lease for office space is an important step for businesses and\ncommercial leasing is complicated. While signing the actual lease before moving\nyour office into a commercial property may be your final act before moving and\ngetting your business up and running, it requires a certain amount of research\nto make sure there are no unwanted surprises on the horizon.<\/p>\n\n\n\n<p>Begin by researching who owns the building and who the landlord is. Learn what local zoning laws require of businesses and get to know the neighborhood you will be located in. Environmental regulations and nuisance laws that refer to smells, noises, or equipment should also be considered when researching. Basic environmental laws may not automatically be defined in your lease, and they can be used against businesses.<\/p>\n\n\n\n<p>Your financial\nresponsibilities are paramount to your business\u2019s success. A short-term lease\noffers flexibility while long-term leases can be great investments if you are\nin an area that is growing. Keep in mind that some leases may include a monthly\npayment that covers everything while others require extra payments for\nindividual expenses. Find out:<\/p>\n\n\n\n<ul><li>How much rent will you pay<\/li><li>The required security deposit<\/li><li>How the space can be used and the\nusable square feet<\/li><li>The duration of the lease<\/li><li>How much will rent increase each\nyear during the duration of your lease<\/li><li>Are utilities included (electric,\ngas, water)<\/li><li>What kind of insurance do you need\nif it is included and how much it costs<\/li><li>Maintenance and repair costs both\ninterior and exterior<\/li><li>Types of building security\ntechnology implemented, such as security cameras and <a href=\"https:\/\/www.avigilon.com\/blog\/commercial-security-doors\">commercial security doors<\/a><\/li><li>Any nuisance clauses<\/li><li>If you will be required to pay a\nportion of property taxes<\/li><li>Additional costs<\/li><li>Parking<\/li><li>&nbsp;If you can make interior\nor exterior modifications and required permits<\/li><li>Potential late fees<\/li><li>Indemnity removing all liabilities\nfor injury, damage, loss, or claims from the landlord<\/li><\/ul>\n\n\n\n<p>Subletting or lease assignments should also be defined clearly if your business closes or if you decide to move it. <\/p>\n\n\n\n<p>You will need an idea of what your overhead will be regarding the property. Also, it benefits you to understand your exposure to risk is and if you must offer personal guarantees. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Depending on the working preferences of agents, brokerage buildings can often have available space. Tenants may leave or the brokerage may acquire a new property with unoccupied space. Owners or management will be responsible for maintaining and caring for the property, and good maintenance increases the possibility of not only leasing the property sooner, but &hellip; <a href=\"https:\/\/www.realtyexecutives.com\/blog\/leasing-out-office-space-from-a-brokerage-building\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Leasing Out Office Space from a Brokerage Building<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[7168,5651,835],"tags":[789,1029,59],"yst_prominent_words":[7166,3196,1082,1022,6255,7164,1221,7167,2632,7165,7161,3604,936,2945,2555,2581,3109,1269,1283,1083],"_links":{"self":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts\/5799"}],"collection":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/comments?post=5799"}],"version-history":[{"count":2,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts\/5799\/revisions"}],"predecessor-version":[{"id":5805,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/posts\/5799\/revisions\/5805"}],"wp:attachment":[{"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/media?parent=5799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/categories?post=5799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/tags?post=5799"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.realtyexecutives.com\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=5799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}