Many business
owners lease more office space than they actually use. Since the Great Recession, businesses have
decreased personnel and increased efficiency.
Of the remaining employees, a growing number telecommute to work. Reducing excess office space will allow your business to cut
overhead costs and increase efficiency.
If you have
extra office space in your lease, the first step is to check the lease for a
cancellation option. If there is no cancellation option, check with the tenants
on either side of your space to see if they need to expand. If so, you might
work out a deal you can present to your landlord. You can also try a
blend-and-extend lease whereby you agree to terminate the existing lease and
make up a new one for five years with reduced space or reduced price.
Your landlord may value longer term leases for the stability of his
mortgage. Consider switching to another space in your current building.
Your landlord may have a smaller suite available and look to rent your space at
a higher per square foot figure.
Another option
is to list your space for sublease. You
may find a complimentary company that would share business machines and
administrative assistance in exchange for renting a block of cubicles and a
corner office. You might be able to put up a wall between half your space
and sublease out the other half. Check your lease to see what
restrictions apply to sublease. You may
want to consult with a real estate attorney.
Finding a sublease tenant and negotiating a contract requires time,
knowledge, and effort. A local,
experienced, and qualified commercial real estate broker will make the process
much smoother.
Troy Golden is President of Golden Group Real Estate. He received his undergraduate degree from Yale University and his MBA in Real Estate from the Wisconsin School of Business. Troy specializes in commercial office brokerage in Chicagoland. Please contact him at troy@goldengroupcre.com or (630) 805-2463.
