There may be one or more reasons to review your current office space position. You may need to lower occupancy costs, improve your current space floor plan efficiency, consider an early lease renewal at fair market rent, negotiate a tenant favorable lease, or evaluate some of the many choices available from hungry San Jose office space landlords.
Space occupancy costs may be reduced by finding a lower base rent when your current lease is over. Sub-leasing space that is not being used following cutbacks can be applied to occupancy costs and bring some relief until the current lease ends. Another mechanism that could be used is to audit landlord pass-through expenses to verify that they do not include misapplied charges, such as capital improvements. Lease renegotiation may work if your landlord will cooperate, thus providing another way to reduce occupancy costs.
Business operations productivity is significantly impacted by layout and configuration of the building. Over time what was once an efficient design can become less than optimum for many reasons. Personnel come and go, technology drives process revisions, new products are introduced and others dropped, all of which impact floor plan efficiencies. To correct the inefficiency and improve productivity, either the obsolete layout needs to be modified with tenant improvements or a move needs to be made to another facility with the proper configuration.
Early lease renewal may be desirable depending on your current lease agreement. If the lease was made at a higher base rent in better times, there may be an opportunity to exercise an option at current rates, which could be 30% less. This is what we do. Silicon Valley Land Company can ascertain fair market rental values to justify the reduction in renewal rent rate.
We recently described a tenant favorable lease solution in our blog and on the web page: http://SiliconValleyLandCompany.com/tenant_favorable_lease.html. This document describes how Silicon Valley Land Company can help include all the necessary business points, make sure they are covered properly, protect the tenant, and assure that there are escape clauses for unexpected damaging events. Rather than have a one-sided lease slanted in favor of the landlord, you get a fair and balanced agreement.
We are in the business of helping tenants find office space. There are many available lease space choices from San Jose landlords willing to help you reduce your occupancy costs. Rents are considerably lower than they have been in years. With economic conditions starting to firm, now is a good time to shop around for another office space. As is usual for times like these, there are many attractive tenant concessions including free rent, tenant improvement allowances, and other inducements to attract new rent-paying occupants.
So, there are opportunities in San Jose for those looking for office space. Whether it is for reducing your cost of doing business, increasing productivity with a better building plan, negotiating an early lease renewal, getting a more favorable lease agreement, or simply shopping for a bargain, the time for finding for office space is now.
Don Kinney is a licensed real estate broker in California with over twenty years of commercial real estate experience. Office Space San Jose