To start the new year with a bang, The San Fernando Valley Bar Association (SFVBA) relocated its main office to Woodland Hills after six years in Tarzana.
The new headquarters is conveniently located on the first floor of the Carlton Plaza building on Ventura Boulevard. It features a beautiful open landscape environment, exposed ceilings, an open kitchen area, and access to a courtyard for outdoor education and social events. Among many other perks, the new space accommodates parking for members and visitors, allows usage of the space after-hours, and provides the SFVBA the opportunity to remain beyond the initial lease term — all for a very competitive rent!
So just how were they able to pull this move off? Rest assured, there was a lot heavier lifting being done under the surface. A perfect office space that meets all of your needs for the perfect price won’t just fall in your lap. But that’s where we can help you. Here are just a few of the things you may not have realized you can negotiate in a commercial lease:
A lease will often have language built in about what is to occur at the end of a lease. Usually, that language includes a time limit that can be enforced by the landlord of when you need to leave—or much worse—pay extra fees that can amount to as much as 300% of your normal rental rate. This language may be found in the Hold Over clause of a lease. In case you do need to relocate again, this clause is crucial to discuss prior to signing a lease.
Option to Renew a Lease
A clause that can also be included may give the tenant the ability to renew their lease. This clause is called an Option To Renew. Without an option to Renew, you can be forced out at the end of your lease, which could have detrimental effects on your business. Options are typically at Fair Market Value. Because we know what Fair Market Value is, we can help you negotiate a renewal price that is fair for you and the landlord.
Use of Amenities and Resources
Although your landlord may wish to charge you extra if you go over budget on heating, ventilation, and air conditioning costs, this is actually something that can be negotiated into your lease, and definitely something worth talking about. You may also be able to work in a deal to use certain spaces that may not have been available to you, or even to use a space during off-hours or for social functions.
What if you’ve found the perfect office, but you know there won’t be enough parking for your employees or guests based on what’s offered in the lease? You can negotiate this! Parking is a necessity for a business, and you shouldn’t shy away from trying to strike up a deal.
Pass Through Expenses
The expenses that a landlord pays for the property such as taxes and insurance costs are often passed through directly to the tenant. While it is reasonable for a tenant to pay some share of the costs to run the building they are renting, this can be especially worrisome in a Base Year lease. These cost can and should be negotiated with the landlord to ensure fairness to both parties. Your business has its own costs to run, and you don’t want to add more to your expenses than necessary.
Every day of the year, Mazirow Commercial negotiates leases to protect and save tenants rent dollars on many lease terms. The landlord is fully informed about the terms of the market place, are you? Don’t go to the table alone, contact us today. We are the tenant advocate for the Greater Los Angeles Area, San Fernando Valley, Conejo Valley, Ventura County, Santa Monica, Glendale, and more.
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Ready to start saving time, money, and headaches on your commercial lease? Schedule a free consultation today with one of our skilled tenant representation specialists.