NFIB

Look Before You Lease
06/ 19/ 2003

by Vicki Gerson

Before you decide to move your business, either because your landlord isn't keeping his promises or you have outgrown your present space, it is important to look before you lease, which means carefully determining if the new space and the move is right for you. Before you sign your new lease, make sure you have considered the following points:

Know exactly what you need and ask yourself the following questions:

You know you need more space now, but will you need even more space in a couple of years?

Will your lease provide for expansion?

Will it allow you to sublet if you outgrow your new space?

Will your lease allow you to terminate before the lease is over?

Have you considered moving expenses?

In addition to moving equipment from one office to another, moving expenses can also include a computer technician's price for setting up a computer network in your new office. Since your address will change when you move to a new office, you also need to consider the cost of printing new business cards, invoices and other items that have your business's address on them.

Know the going rates for space.

Don't believe everything you hear. Do your own homework. Find out the market rates for similar office space in your area. Always ask the square footage cost as well as the build-out cost. Some building owners may seem to have a lower square footage cost than others, but they make their money by charging you more on the build-out costs.

Get everything in writing.

If you don't understand the vague language in the lease, don't sign it. Have your attorney look it over. Every point pertaining to your lease must be spelled out. If the rent has a cap, get it in writing. If the landlord says that he won't pass on increased utility expenses to you, get it in writing. If your landlord promises you new carpeting or painting, get it in writing. This is one way to protect yourself against the unexpected changes once you have signed the lease.

What if?

The lease says your office space will be ready on July 1, but what if it isn't ready? Who is responsible to pay the additional expenses in the interim? How are you supposed to operate your business if you have to place almost everything in storage for a week or two? You should prepare your business for this possibility, perhaps by overlapping your move from the old office with the move to the new one.

You never know if things will go as planned. If the person who owns the building sells it, will that affect you? What if there is fire damage to the building and you can't work there for two months, do you still have to pay the rent? Those issues should be discussed and put into writing before you sign your lease.


Once you sign this legal binding document, you have to live by the terms of the agreement. That's why it is important to make sure what you sign is best for you and your business, now and in the future.

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