There is a myriad of reasons why businesses move to Los Angeles–the food, outdoor activities, the beach, and the sunny weather.
Renting an office space Los Angeles is a great idea because you have access to a large and qualified labor pool. After all, it’s the second most populous area in the US, which is excellent for any business.
When it comes to renting your office space, you need to look at your list and check it twice. Due diligence is necessary because you might get stuck in a situation that’s very hard to get out of.
If this is your first time to rent an office space, here are some questions you should ask your commercial real estate agent:
Will the landlord cover some of the cost for improvements?
Typically, you get the office space Los Angeles barebones. You need to introduce some upgrades to fit your style and brand. You will bring in new lights, carpeting, and make some structural changes to the room. Usually, it’s the tenant who will shoulder the cost. However, some landlords will assume part of the cost and deduct it from the amortization. It doesn’t hurt to ask.
What are the other upfront costs?
The affordable rental fee might attract some businesses. However, other associated costs can quickly accumulate if you are not careful. Among the expenses include the security deposit and maintenance fees, parking fees, attorney fees, liability insurance, utility and Internet, and improvements. Factor in these costs beforehand because you might be taking in more expenses than you would have liked.
Is there a right of first refusal policy?
Say, you’ve been eyeing another office space within the building for some time because it’s more significant, the layout is better, and has more windows. Then you happen to know that the tenant is leaving. The right of first refusal means that you get priority when the tenant moves out. This clause should be outlined in your contract.
What is the landlord’s policy for moving in and moving out?
For instance, what happens if on the date that you are scheduled to move in and the office space is not yet ready? Will the landlord move you to an adjacent office within the property? But you will only accrue more costs with this arrangement, not to mention, confuse your clients. Will the landlord chop off a portion of your monthly rent as compensation? And what happens if it’s your turn to move out before the terms of the contract end, will you be penalized? Better discuss these terms as well.
What’s the landlord’s policy on renewal?
Businesses pine for stability more than anything else. Your contract should have a clear option for renewal. And the contract should also specify the annual percentage rate of increase in the monthly rent. This will allow you to factor into your overhead if the anticipated increases.
If you are ready to rent an office space, visit Office Finder now. They can connect you with local realtors who will help find the perfect space for your new office in Los Angeles.