At Riverview Innovation Center, we recognize that leasing commercial office space is a significant decision. You want a space that aligns closely with your business needs. Besides the property's physical and financial aspects, there are other critical factors to consider.
Before signing a lease, you must verify key elements such as hidden operating expenses (CAM fees), expansion/subleasing rights, internet infrastructure, and more. To help protect your business interests and avoid potential issues, you should also review maintenance and insurance obligations.
Understanding commonly overlooked leasing considerations will help you get a strong start in your new business space. This guide covers the five key factors businesses should consider when looking for a commercial property for lease.
Amenities Available
While everyone checks the physical condition of the available space, they often overlook the amenities. Keep in mind that your employees will be working alongside you to achieve organizational goals. Employee well-being should be part of your decision-making process. Consider the amenities available at the property you are planning to lease. The amenities available not only influence the type of talent you attract but can also help improve retention. Consider the amenities that most directly impact daily operations, employee satisfaction, and security. Some of our amenities include yoga classes, an indoor walking track, mini golf, a lending library, and much more that can help your employees feel and work their best.
Hidden Operating Expenses (CAM Fees)
Commercial leases come in various forms and differ in how expenses are allocated between landlords and tenants. The variation in costs generally depends on how the building’s expenses are passed on to the tenant. While you might be paying a specific base rent each month, it’s necessary to understand what type of lease you actually have. Typically, there are three kinds of leases: full-service or gross lease, net lease, and modified gross lease. Under a gross lease, you will pay a fixed amount of rent each month, and the landlord will pay all building-related expenses. A net lease includes base rent plus a portion of the building's taxes, insurance, and maintenance. A modified gross lease combines elements of both a gross lease and a net lease, meaning you will be responsible for certain expenses while the landlord covers others. To help avoid future disputes with the landlord, ask for an itemized estimate of all Common Area Maintenance (CAM) charges.
Expansion And Exit Clauses
Businesses can grow over time. In some situations, they may also need to end their lease early. In either case, the lease agreement may need to accommodate changing business needs. While it is impossible to anticipate every future scenario, considering potential growth plans can help determine the type of space that best fits your needs today. Ask the landlord whether the agreement includes an expansion option or a subleasing clause. The lease should clearly outline the terms related to improvements and expansions. It should also specify who is responsible for the associated costs. Similarly, you should obtain detailed information about the exit clause. Understanding the financial implications of terminating the lease early can help you make a more informed decision.
Internet & Tech Infrastructure
Modern businesses rely heavily on technology. High-speed internet and reliable infrastructure are essential. Businesses do not want productivity impacted by poor connectivity. Slow internet, inadequate cabling, or poor cell reception can disrupt hybrid operations and reduce efficiency. To verify that a prospective office space can support your needs, inspect the building’s centralized telecom room. Ask the landlord which Internet Service Providers (ISPs) service the building. Ensure there is a redundant “dual WAN” setup so that if one fiber line is cut, your business remains operational. Also clarify who will be responsible for running data cables from the utility closet to your office space.
HVAC, Plumbing, And Building Systems
While the space may look appealing, it’s equally important to evaluate the building’s functionality. One of the best ways to do this is by reviewing its core building systems. Check which HVAC and plumbing systems are in operation. They should be modern, well-maintained, and capable of supporting your daily operations and equipment. You can also bring a qualified expert to help assess these systems. In addition, determine who is responsible for repair and maintenance costs related to these building systems. Reviewing these responsibilities can help prevent unexpected expenses related to HVAC, plumbing, and other building systems.
Maintenance And Insurance Responsibilities
The specific lease structure determines maintenance and insurance responsibilities. It might be a gross lease or a triple-net lease, and the contract language will determine who handles what. Generally, landlords manage the building structure while tenants manage the interior space, but this varies depending on the exact lease. Regarding maintenance responsibilities, landlords generally handle structural elements and major building systems. Tenants are typically responsible for routine interior upkeep and repairs for any damage they cause. For insurance, the landlord insures the physical structure of the building, but in the case of Triple Net (NNN) leases, the tenant indirectly pays these costs through CAM charges. For personal property, tenants should carry contents insurance to protect furniture, computers, inventory, and interior fixtures.
Riverview Innovation Center—A Premier Commercial Space For Lease
At Riverview Innovation Center, we understand the importance of planning before leasing commercial space. The information above highlights several factors that businesses commonly overlook when evaluating office space. No matter how appealing a property may appear, businesses should carefully evaluate these considerations before making a leasing decision.
Businesses seeking to lease commercial property can contact us at Riverview Innovation Center. We offer a multi-use facility spanning 23 acres in Menands. With yoga classes, a walking track, mini golf, a lending library, and on-site parking, we provide a professional commercial environment designed to support office users.