In regards to leases, wouldn't it be better to get a longer term lease? Let's say you get a 1 year lease at $40sf. Then a year passes and market rates go up to $43, then $45 etc. That can have a very real and huge impact on your space. the economics rapidly change with even a few dollars per sf change.
Invesment: Let's assume you spend $20K on furnishing your new coworking space. There is almost no way you can earn back that amount in the first year. If you have to move after 1 year, you have to start all over. A good reason to get a short lease is If you have put a personal guarantee on the lease... That's scary and a 1 yr lease lessens your liability. Try to get a full service lease. That simplifies planning by a lot. You basically pay 1 amount for "everything". Also don't forget to consider security deposit. For a company with no operating history and no assets, a landlord might ask for 6 months security deposit. A sublease might ask for 1-3 months. I'm curious about months of free rent. Is this normal? How many free months did you guys get? Bruce On Jan 19, 2012, at 12:06 PM, Angel Kwiatkowski <[email protected]> wrote: > Best if you have a commercial Realtor. It's never too late to get one > to help with your lease negotiations. > - length of lease (1 or 2 years). > I think a new space should try to get as short as possible. Our first > 2 leases were each 1 year. Now that we're more established, we are on > a 2 year. > - is insurance included and what does it include? > You'll likely need to get your own insurance to cover your belongings > in the space. You can also have your members who leave property in the > space get their own renter's insurance > - what about taxes and utilities. > You'll need to be real clear about what extras you have to pay on top > of rent. I've been lucky to get a "Gross" lease each time which means > I write one check each month and it includes, rent, utilities etc > except internet which we pay for separately. A NNN lease can be a > nightmare especially if they don't have an accurate estimate of what > heat/gas/electric/water/trash might cost each month. A NNN lease can > add almost 50% extra to the price of your monthly rent. Landlords also > pass their property taxes and building improvements on to you in a NNN > so they make me real nervous most times. > - improvements to be included. > Yes, you'll need to make sure that each party's responsibilities are > fairly and accurately represented. What out for phrases like "tenant > will pay for any repairs or maintenance on plumbing, heating, > electric." <----also a crappy part of NNN leases. > - months of free rent. > Of course. > - security of location. > Try to get your landlord to buy the access system that you choose for > the building. You likely won't take it with you when you leave. My new > landlord threw down $2,000 for our electronic locks b/c he knows he'll > keep them if we leave and it makes his property management easier with > multiple tenants. > - etc., etc. > > Long story short--get a commercial Realtor. You won't pay them > anything, the landlord will :) > > On Jan 17, 2:43 pm, bruce edward whitaker <[email protected]> > wrote: >> We are about to put in an offer on a vacant space to house a new >> coworking group. Any and all items to include in the offer would be >> very much appreciated. Some that I can think of: >> >> - length of lease (1 or 2 years). >> - is insurance included and what does it include? >> - what about taxes and utilities. >> - improvements to be included. >> - months of free rent. >> - security of location. >> - etc., etc. >> >> Even better if anyone has a lease I would love to see it. >> >> Hoping everyone is well today. >> >> Bruce > > -- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]. > For more options, visit this group at > http://groups.google.com/group/coworking?hl=en. > -- You received this message because you are subscribed to the Google Groups "Coworking" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/coworking?hl=en.
