Start-ups are all the rage in today’s business scenario. Everyone knows that start-ups is the place to be, in view of better exposure, more opportunities, higher employee like-mindedness and a broader scope for further training and development. There are so many things that start-up managements undertake with smartness and finesse. And then there are those few areas which could prove too tricky for even the experts. One such area is renting out a suitable corporate real estate space. Many start-ups are creative work space enthusiasts. But the selection process of an appropriate creative work space could end up being too stressful for many start-up managements.
The benefits of creative office spaces are abundant.Agreed! But a roughly considered creative workspace could mean more trouble than good for growing start-ups. And this includes the vast financial implications of the decisions majorly.
If you happen to be part of a growing start-up and also on the lookout for a Miami rental office space, you are reading the right article. I have made a list of crucial factors that must be considered before signing the lease papers for your next office space:
The implications of the Triple N lease
A Triple N lease is a method that is gaining popularity at a fast rate amongst real estate professionals. So what is a Triple N lease? The term stands for a payment arrangement under which a tenant will be required to pay a base lease rate. This base rate has to be paid along with the payment for the services, taxes, utilities, management and insurance, with regards to the proportion of the size and/or facilities the property offers.
What has changed in this setting as compared to a traditional one, is the inclusion of a proportional payment method. Unlike the traditional scenarios, where a full-service gross lease would entail the major utilities provided, under this method, the property owner covers their cost of offering you their services in an on-demand manner.
For instance, let us agree on an offered price of $3/sq. ft. base rent and $2/sq. ft. triple N charges for a space of 10,000 sq. ft.; your total cost would be $ 50k($ 30k base + $ 20k triple N)
Although this lease setting is more beneficial to the property owners, it is not a bad alternative for the start-ups either. But one things the start up’s management must address is their productivity, consistency and employee culture throughout their tenure. Start-ups are prone to variability. Variability in business is unavoidable, but too much of it could mean financial disadvantages for the organization.
The term of your lease
The duration for which you want to acquire an office space for rent could aid you majorly in your negotiations. The longer the lease, the better. You could consider your space requirements in case you are willing to go for a longer lease term.
The scope for further renovations
As part of the start up’s management, you could clearly understand the scope and details regarding future renovation and improvement requirements. Renovation is an important aspect to consider, especially in case of creative office spaces. The ratio of responsibility in time of further architectural development must be clearly defined well before moving on to the final stages of agreement.
Since creative office spaces are a new concept in Miami rental office spaces, the landlords might not be clear regarding the comfort and aesthetic preferences of the lessee. Another concern for caution is the high cost that could result from such renovations.
I totally agree that there are other important factors to be considered as well. I have pointed out these elements specifically as they are the places where most start-ups go wrong. If you feel too unsure of moving forward with your research and analysis, it is best to ensure that you have a responsible and reputed real estate agent by your side.